Cloudbreak Discovery Share Discussion Threads

[ridgeback] 30/11/2007 16:31

'Stock market is a gamble.'

Not such a gamble for Bensch it would seem. He can well and truly f@ck up and still walk away unscathed.

[bb44] 30/11/2007 16:22

DB - we all have an opinion and we all express it. so... I think I would leave my post where it is. Stock market is a gamble. And thats why we DIVERSIFY our investments. something always goes right - something always goes wrong.

[david brent] 30/11/2007 16:20

I think even the princess warrior may have gotten wounded on this one!!

[omellete] 30/11/2007 16:17

David - Exactly - mine was small and I only punted - plus I am not angry.

Why do people always assume you must be angry when you criticise management?

Anyway - like I have said previously, teh PI's decision matters for Zilch here - the Hedge Funds who hold will decide - plus some poor sucker hedge fund bought 2 million for 11 pence IIRC just before suspension.

Main person I would like to hear an opinion from is Xena - and I think after posting postively for a long time and having the best understanding of the situation it would be very good if she could.

[bb44] 30/11/2007 15:56

we all made an informed decision to invest in this Company. It's an emerging market and it's a small business. It is extremely disappointing that we did loose money but lets be fair, - we all are grow up people and presumably make decisions based on our best judgement and thorough research.

First of all - don't invest in emerging market if you can't afford to loose the money and second of all don't blame the whole world if you do!

Don't tell me you were assuming that everything was nice and rosy in the Company when it has not practically generated any revenues for the past 9 months! It can't afford to go on leaving off the borrowed money indefinitely. We all took a calculated risk that something would change, for example Ukrainian government would amend the resolution and let o&g companies collect their well deserved income.

It's been a year of unfortunate events for Cardinal that did not really help the Company to blossom.

January – gas prices capped leaving Cardinal without any revenues

March – QVT calls in EGM, which btw cost us (SHAREHOLDERS) US$1 million and I bet wasted a good amount of management's time

May- GGF completed but Ukrainian bureaucrats prevent Cardinal from commissioning the plant until some three months later.

June – Company runs out of money and arranging for the credit facility with Hares BUT as we all find out later SPC does not let it to draw down any of the funds.

August – Still no money. Cardinal signs an agreement with Condor to generate some cash.

September – Company desperately tries to find alternative source of funds. Announcements mention takeover talks, equity funds, spc restructuring.

October – still no money. Interim results delayed. Nomad resigns.

November – Cardinal is faced by the choice – administration and everyone losses everything OR deal with KEC and the chance to move forward and keep some value in the company. Is it a good offer for shareholders? Definitely not! but Can company be in a very strong negotiation position when it's on a verge of being bankrupt.

THESE IS ALL BASED ON THE COMPANY ANNOUNCEMENTS

Could it all turn out differently? Certainly! If Ukraine were a country were the rule of law is present and were the rights of investors are respected... well – YES!

- Cardinal could have exercised its contractual right and re-instate its interest in RC
- Cardinal could have continued generating revenues if not for the capped prices and enjoy constantly increasing market rate
- It could have taken Ukraine less than INDEFINITE to form the government and start proposing policies that do make some economical sense.

I assume we all took the risk in full knowledge of these facts.

Management is not perfect but its not evil either. Yes, it should have put tigher control on spendings. GGF being 50% over budget is way above norm but its o&g busiess and going over budget is not all that uncommon (Shell' Sakhalin gas project in Russia had shot $10bn (£5.7bn) over budget).

There is always a trade off between high risk and high return. And if there is a chance for this Company to retain and generate any value in future I cant see why any sensible people (and not those blinded with anger) would not take that chance!

And yes... looks like I am Rob's groupie as I am staying calm, take the responsibility for my decisions and plan to make my future decisions based on logic and not emotions.

[david brent] 30/11/2007 15:23

LONDON - Friday, 30 November 2007
Cardinal Resources plc ("Cardinal" or "the Company"), an independent oil and gas production and exploration company operating in Ukraine, today announces the results of the Extraordinary General Meeting of Cardinal held earlier today:

Special resolution 1 that the articles of association of the Company be amended to increase the borrowing powers of the directors was rejected by 38,216,520 votes to 22,402,065 votes, representing 63% of votes cast for the resolution and 37% of votes cast against the resolution, respectively. A special resolution requires a majority of not less than 75% to be passed.

Ordinary resolution 2 to approve and ratify any existing borrowings of principal debt together with interest thereon incurred by the Company pursuant to the issue to SPCP Group, LLC, or its nominee, of loan notes was passed by 38,216,520 votes to 22,402,065 votes, representing 63% of votes cast for the resolution and 37% of votes cast against the resolution, respectively.

Ordinary resolution 3 to approve any future borrowings incurred by the Company pursuant to the issue to SPCP Group, LLC, or its nominee of further loan notes up to the value of US$38,600,000 and any borrowings incurred by the Company pursuant to a commitment letter entered into by the Company and Hares Group Holdings GmbH on 30 June 2007, up to a value of US$5,000,000 was passed by 38,450,248 votes to 22,159,337 votes, representing 63% of votes cast for the resolution and 37% of votes cast against the resolution, respectively.

Special resolutions 4 and 5 that the capital reorganisation and reduction of the nominal value of the ordinary shares of the Company were unanimously passed by the 60,618,585 shares cast for the resolution.

[crazy russian] 30/11/2007 13:35

and I was wrong!

I voted against QVT

oh its so easy in hindsight!

[omellete] 30/11/2007 12:53

QVT were right!! They were very right.

That guy they would have put in charge could not have done any worse.

[ridgeback] 30/11/2007 12:37

I agree Omellette.

[ozma] 30/11/2007 12:21

er... no! but the choice between getting nothing and a chance to get something at the end looks obvious to me!!!!

[relishing] 30/11/2007 12:17

You must be a Director, yes?

Surely only an AIM Director would be surprised when PI's got angry at being screwed over. :)

[ozma] 30/11/2007 12:15

omellete/DB,

What are all these angry outbursts for???

All the shareholders are disappointed no question but the proposed investing strategy gives company a second chance! You vote against and put company into bankruptcy and get nothing! Or... vote for and see what happens. We are not loosing anything here for going forward.

[omellete] 30/11/2007 10:43

OK the question is:

The question is does the proposed sale of actual assets preclude the remaining CDL from having the right of restatement on the RC field?

i.e. do Kuwait and their buddies at Hares now get this right?

Surely it is not an asset and the right should not be sold on.

[sg31] 30/11/2007 10:40

They haven't sold anything yet.

[omellete] 30/11/2007 09:21

Yes - but by voting No we will be cutting Bensch's nose too!!!


If he succeeds then he is doing a Ken Bates - effectively getting it all.

One thing that is not entirley clear to me is why they have not retained the ability for RC field reinstatement within the company. They seem to have sold it to Kuwait but it is not entirely clear. That part is a company maker in itself - so what is the status of it?

Maybe Xena can clarify that bit.

[david brent] 30/11/2007 09:00

no point in cutting your nose off to spite your face etc.......

[writz] 30/11/2007 08:40

Well I understand that today's EGM is still happening. So...

[writz] 30/11/2007 06:50

Questions for Xena - since she was the one who put forward the theory - is the hat and rabbit trick involving the buy back of CDL's Ukrainian assets still alive?

The circular to shareholders appears to say that Bensch has no other options for borrowing, indeed that he is legally prevented from doing so - correct me if I'm wrong or am misinterpreting that.

Also, is there any value in the CDL that will emerge from this (assuming the motions at the EGM are passed)? I struck me as rather rich to say that CDL would be concentrating on its geographical regions of expertise (except Ukraine) when Ukraine is the one place they seem to have experience of operating!

Nevertheless, I'm willing to suspend judgement on Bensch. He took a calculated risk (and we did too) on being able to pay off Silverpoint - it's not the first time that circumstances have conspired, etc.

At any rate, I don't see much point in voting against the resolutions as an act of revenge. That's not worth the cost even of 1p/share.

Anyway, best of luck to everyone!

[crazy russian] 29/11/2007 21:22

agree
repeat 3075