It could be a conflict of interest, but I believe Delotte, and the lawyers will make sure it is not. For example, if the new company was just I piece of a plan to monetize ERHC's assets and has a third party fairness opinion as to this action being legal, it would not be a conflict of interest,imo.
Also there is probably a way around the 6 months waiting period on insider purchase. I was told a long time ago any takeover of ERHC would follow the Addax pattern. I believe this pattern can be used and the effect is to have a takeover become public in less than 6 months.
I do believe the management of ERHC does owe the shareholders an explanation of the purpose of the New Company, but that may not be enough to get a public explanation. I do believe they are feeling some "heat" over the fact the New Company plans have become public.
