Questions for German Investor.
German investor:
Putting aside your personal dislike for Richard Fifer, and the rest of the management team; the merits or lack thereof of your proposal; whether or not it can or will work; please answer in very specific these questions about the mechanics of your plan:
1. Who are the individuals you propose to place on the BOD so they may be vetted before commitments are made and money spent?
2. Who is funding this action that may require one to tow years to complete, and how much is budgeted and available?.
3. What are the names of the law firms in Panama, Canada, USA, and Germany that have been or are to be engaged, and will the entire ad hoc group be liable under their letters of engagement?
4. Who is paying them now for their preliminary feasibility work and research?
5. What are the estimated costs involved for, research, filings, protocol compliance, and who is paying or obligated?
6. Who is replacing the money ($60Million) that was to be provided by MPSA with the cancellation of the agreement that may occur under the terms of the just negotiated deal?
7. What law firm in Panama has given you a report that Panamanian law either will not apply or can be circumvented, and at what cost?
8. Who is fronting the money to pay the side agreements that trigger immediate payment of debt because of the proposed change?
9. Who is willing to donate in total over ($100million) with no dilution or promise of repayment? (triggered debt, PP agreement, MPSA agreement,contractual severance.)
10. To what extent are the members of your ad hoc (Thus far unnamed.) group exposed to legal ramifications under Panamanian law; what law firm has been engaged to represent their interest and at what cost?
11. Same question for participating stockholders since this is a complete takeover and new owners may be liable in Panama.
12. Who is going to pay for their defense?
12. Who specifically is going to inject funds to resume operations with no dilution or plan of repayment?
13. Who is going to recruit, interview and hire new management members; at what cost and with what qualification?
14. What is your time line for resuming production and how is it to be funded given that approval in germane jurisdictions by government authorities may take two years?
15. Who has provided a feasibility study that convinces you this is achievable?
16. Who is providing and what is the cost the insurance to protect all groups referenced herein above?
Once again these are some simple logical questions with no reflection on personal issues, the merit of your plan, or whether or not it may succeed. In fairness to those who are not familiar with the issues discussed above it, would be expected that you would provide such information before asking those unfamiliar with the situation to become involved in something wherein the may incur large financial obligations as well as be challenged in court.
Please do not defer direct answers to specific questions by referencing other actions at other companies. Each case is different and Petaquilla’s is quite complicated. Based on what I see and the legal advice I have at my hand this is indeed an effort more appropriate for Don Quixote. The biggest risk is that it might succeed and immediately shutdown permanently the company and trigger a large number of lawsuits directed against all involved. You cannot go against protocols and laws with impunity.
One International Law Firm with which I have close contact, and has extensive experience in these matters in Panama, might consider an engagement in this effort. However, they would require a good faith escrow deposit of $500,000.00 to begin necessary research and would then issue a feasibility study working from that fund. Please advise if you are interested.
Far more realistic is the plan put forward by the moderator.IMO. It is fully funded,absolutely legal in all jurisdictions, and you will have the detailed production guidance shortly.
Disclaimer:
These statements are to the best of my very limited research merely questions logically assumed, and may or may not reflect all matters that should be discussed before any decision. Do not rely on their accuracy or completeness.
AI
