Replies to post #16015 on Pilgrim Petroleum Corp. (PGPM)

[ncpti]

And I sent him an email noting the same as you just stated! He has an uphill battle and seems very willing to go the long mile! And doesn't seem to be put off by the challange.

ncpti

[downsideup]

It is impossible to trust them...

Without proof there is in fact a change in management that means the prior history of non-arms length "deal making" is over... that a genuine change of control has occurred, with former interests no longer exercising influence or control over PGPM in any way...??? You can't just assume that a new face means anything has really changed.

When Matt talks about "what they tell me"... who is "they" and why does the new CEO appear constrained by them ?

Who tells the new CEO what to do... or who can ?

The problems here are all based in "self dealing"... because PGPM had no meaningful boundaries that were ever enforced between PGPM and American, or ACLY, etc., which all had the same management, cooperating to benefit themselves at PGPM shareholders expense...

Matt is wrong, IMO, about the "deals" done not constituting frauds... and is also wrong, IMO, about what that FACT would mean in terms of value to a PGPM share were any proper effort made to have the law be properly applied... as it was not "PGPM" that committed any crimes rather than PGPM being made the victim of them, by PGPM and ACLY officers... as frauds are not legitimate acts, and the company and its shareholders are the only known victims... there should be few problems making that work for PGPM.

The "dividend" of ACLY shares paid to PGPM holders isn't problematic, other than in the role that played if fostering and enabling the structuring of the "completion steps" in a planned fraud... The planned "swap" of PGPM shares for ACLY shares was an obvious fraud... which was not completed, at the last moment, after that problem had been pointed out. That fraud may be completed STILL, if either $40 million plus interest, or the leases plus interest and damages, do not come back to PGPM.

Having PGPM not enforce its rights under the note, while ACLY sells the leases, and then pays PGPM with worthless ACLY shares... should be obvious as still nothing other than the execution step completing that fraud they failed to complete some time back.

The passage of time... does not make a fraud that was not completed then, that is completed now... into something that is not a fraud.

It won't be "not a fraud" because the new CEO doesn't understand it, either...

I don't see any way that ACLY can come CLOSE to meeting their obligations to PGPM, who they owe $40 million, still... without returning all of the leases... considered at a fair market value, given ACLY's obvious mis-management of them... including the losses in lease value attributable to ALL the poor decisions made in the arrangements made with Springfield... and the value of production from all leases... Then, given that market value subtracted from the $40 million plus interest owed... there is still going to be millions and millions owed...

I don't think ACLY has any other value in trade left to use in closing the gap in what they still owe... and the only thing that leaves... is ACLY itself... They will need to issue shares at the market price sufficient to pay the remaining debt. Anyone know what the market price of ACLY is ???

When all of that is done... What PGPM will own is all of their original properties, plus some others, the ACLY shell, and a set of rights that will still be useful in prosecuting former PGPM and ACLY officers... along with some uncertainties in the resolutions of the former IMVS problems. They might try to shed some of those liabilities in making some deal. Doing that will need to be proven as in PGPM shareholders best interest to have that deal not itself inherit the taints of prior problems... and, in any case, the deals made won't alter shareholders rights to address those problems separately...

I expect that won't be an issue IF they DO wrap up the deals as noted above...

My hunch is that the former IMVS liabilities were somehow paid off... by the deal made with Springfield. We will need to see what it was that was done, and how bad it smells, to determine what should be done about it...

Otherwise, if those liabilities were not disposed of already, the ACLY shell is a tarbaby that isn't worth accepting... and PGPM will still need to address any misrepresentations made in making the original deal for the shell...

If they give up the leases... and a clean ACLY shell with any other values it has... there is still an issue of values owed PGPM by the former management themselves... a gold mine in Columbia comes to mind...??? Not sure what other assets or values will prove to have been pirated by the ACLY CEO, erstwhile PGPM accountant... but, discovery should be fun.

JMHO