I believe that because they own so many shares they can make a killing when this goes through,I mean an instant killing - that is how they can make a bundle without doing much else....
i don't think they care about the shareholders but with luck we are along for the ride.. also don't believe that this late in the game whomever they gave shares too wouldn't have taken them unless they thought there was a good chance of recouping their debt. Sure , they could be taken to court and probably don't care but I don't think ( and hope ) this is the case.
If nothing else it is wonderful to see all the detective work and both pro and con arguments here. wait till all of you see the novel I am basing this on.. ah pinkies.
Yeah well you will like this explanation better!!!! We are all good. About time some action is about to hit this stock after 2 years of silence. I look forward to trading 75 million shares a year versus the 10 million we have been experiencing lately per year. I added today and I hope you did too!
Also the equity gain alone in the stock gain would make them more than the loan amount so they have an incentive to give the project back while serving as the Holdco. IMO Falak Properties was approved for the $3 billion credit facility and they are acting as the "Holdco" Company per standard lending guidelines.
When establishing the financing the project is placed into a limited liability company which in this case is Shala Energy LLC, but typical large scale projects require the majority of the equity interest in the project company (in this case Shala Energy LLC) to be held by at least one intermediate holding company (the Holdco) created for the purpose of pledging the Project Company's Equity to the lenders in the eventual project financing. Basically Falak Properties IMO is acting as the "Holdco" and holds the majority of the equity.
Too bad people do not read or understand large scale project basics. Can someone look up a manual used by the banks? Wait they will say look it up for me. OKay I will!!!!
II. Establishing a Project Structure and Negotiating Project Agreements
A. Project Structure
The project finance structure revolves around the creation of the Project Company that holds all of the project’s assets, including all of its contractual rights and obligations. The Project Company is usually a single-member limited liability company, although in some cases it may be a limited partnership. In most cases, the equity interest in the Project Company will be held by at least one intermediate holding company, usually a limited liability company (the “Holdco”), created for the purpose of pledging the Project Company’s equity to the lenders in the eventual project financing. While the Holdco will have a separate legal identity, typically it will not have any business apart from holding the equity of the Project Company. This structure allows for most liability to be contained at the bankruptcy-remote Project Company level, and thus insulates the Sponsor (including equity investors in the Sponsor) and the Holdco from liability to either the Project Company’s contractual counterparties (“Counterparties”) or to the Holdco’s lenders. In order to ensure that the Project Company is treated as a separate legal entity, it will be necessary to have governance mechanisms at the Project Company level that are independent, including designated officers, at least one independent director, and internal controls and procedures designed to preserve a legal entity distinct from the Sponsor and the Holdco.
Also this is my opinion and you can spin doom and gloom too for more cheapies I understand. GLTA!
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