Tethys Share Discussion Threads

[naimanka74] 28/11/2016 00:13

Quite the find, what amazes me is that they seemingly have pledged all their assets essentially to this lender so they (Tethys) can't have much wriggle room left at all if they have no income. What a mess.

[casual47] 27/11/2016 10:39

The Cayman's loan could have been renegotiated with as conditions 1. It is now secured and 2. Mattias joins the BOD so he can keep an eye on things.

The Caymans loan has already been updated once, earlier this year, where the loan was going to be secured against 20% of the gas revenue once the Olisol deal completed with Caymans having the right to seize assets if no payment was forthcoming. Obviously that has fallen through on two counts: olisol and the gas contract. The reason it got updated was because one of the defaults specified in the original loan was a change of ownership, which would have been triggered with the Olisol deal. So TPL had to renegotiate the loan in order to be able to proceed with Olisol. Something similar may be going on now. The Cayman guys may well think "once bitten twice shy" hence the new arrangement.

The only reason we know the Caymans loan was renegotiated is because they published the contract on SEDAR. Here it is: hTTtp://www.sedar.com/GetFile.do?lang=EN&docClass=36&;issuerNo=00025284&issuerType=03&;projectNo=02461726&docId=3887084
Note the new addition "Section 3 Lien"

[dorset64] 27/11/2016 09:33

I personally see it as a positive that Mattias joint Tethys not only as an advisor, but actually fully upon the BOD's. With the post comes responsibilities as previously mentioned.

Bill Wells is, for me, a positive to have him on the BoD's as he too needs the share price far far higher than it is today. In fact and although others keep bemoaning the current loans situation, I don't as in effect if TPL went bust, which I don't believe it will, then as ALL of the loans are UN-SECURED not one person will get any monies back, not a penny.

The only way for them, and us to get a payback from this share is for the company to be trading, drilling shallow wells & selling its production in order that, in turn, the share price rises and everyone, including us, gets paid.

[1399peter] 27/11/2016 09:25

It certainly makes more sense that Mattias is there to help or indeed protect an investment (former or latter) rather than oversee a fire sale

[hguess16] 27/11/2016 09:20

I read that the Cayman lender is an investment fund. I find it incredible that an investment fund in Cayman should ask Sjoborg/Plena, another investment fund, to get involved in order to protect its $8.5m in Tethys.
In any case let us lay down the big third party loans to Tethys:

Cayman Investment Fund ( Khan ) $8,5m
AGR Energy $7.5m
Oliosl W/C $5.8m

-----
$21.8 plus interest say $23m

In contrast, PAM with ALR may have invested at least $30m

The value of Tethys proved reserves in KAZ, based on the Gustavson Report in 2012 could have a value of at least $50m at current prices.

Olisol has paid $6.3m for 63m shares. It also has a great deal to lose if Tethys goes to the wall.

Based on the above analysis and Sjoborg joining the Board on 16 Nov knowing all the
facts about the Tethys financial issues, I am very surprised that a few articulate PI observer/analysts are suggesting that Tethys is on its last legs and that PAM and Bill Wells are going to abandon ship without a fight.
While I appreciate that the delay is causing even more frustration among PI's and that the prophets of doom are creating a sense of heightened uncertainty about the future of Tethys, I would hope that Bill Wells and his team are actively involved
in a plan to resuscitate the patient with a welcome dose of cash infusion based on its assets !.

[dorset64] 27/11/2016 09:04

My two bits without any prior knowledge:

Mattias Sjoborg – Senior Advisor, Investments
Mattias Sjoborg began his career at RMC plc where he led teams in the restructuring of group operations.

He joined Plena Group in 2001, and has led teams through due diligence, negotiation and the restructuring of a large Eastern European privatisation. Mattias has nearly 15 years’ investment experience in origination, due diligence and structuring cross border transactions related to privately held companies and privatisations, in predominantly emerging markets. He has an MBA degree from IMD Lausanne, Switzerland.
=============================================

First of all, Plena have two types of managers, one are the operational team and the second is the investment team. Matters Sjoborg above is situated within Plena's investment team and, in being so, the investment team appears to only be involved with investments made BY Plena, not investments made by OTHER co's or investment firms in the Caymans UNLESS, that investment firm is indeed Plena itself.

It quite clearly states upon their website that, as a senior advisor he sits on the boards of companies in order to strengthen their team and to take the company forward in order to make a profit.


Further, it goes on to state:

Active Ownership: The synergy between operational management and shareholders is fundamental to the success of the business. Our ‘hands on’ approach means we cultivate strong and respectful relationships, so we can better understand and support the business.

And finally:

Our operating companies are run by professional management teams, which report to the supervisory board of operations. The supervisory board always consists of a Plena member, an industry expert, and a local businessperson with local insight and knowledge. The CEO or managing director, as well as other main company directors, also take part in meetings when required.

Plena Group is 100% private and does not publish any of its financial performance information.

I have then, given they are a private company and do not post any financial information to find out if they themselves hold corporate or accounts in the Cayman Islands, thus i can find nothing out. Could it actually be that the 'mystery' Caymans investor is actually the Plena Group as, being private it would not be a surprise to me to find their accounts held in such a place given the favourable tax conditions etc.

Just a thought to discuss but it would add up to me given all of the above and, even seeing as there is a tie-in between Bill Wells and these guys, there is no way that I can see the Plena Group allowing one of their top advisors and a son of the founder, to simply be sat on a BoD babysitting someone else' investment, unless it was actually their own money.

Who knows.

[1399peter] 27/11/2016 07:27

I suppose we have to look at all possible scenario's. It's very hard to second guess these situations. Casual could well be right about Mattias but on the more optimistic side he could also be there to make sure that the next injection of cash actually gets things movings, instead of just paying wages. Also it doesn't make sense to me to allow Tethy's to go bankrupt as it has a Market cap of £4.2m I doubt you would get much back on $10m already invested. Any business person worth their salts would be able to see that with the right investment Tethy's has a very bright future if of course it can hang onto those incredible assets.

[casual47] 26/11/2016 21:18

The contribution he can make does not necessarily align to the interests of us PIs. That's why it's useful to try to understand what his motives are.

It is right to obsess about the Cayman lender because their loan amounts to nearly 10 million USD and matures this March. They may even be within their rights to trigger a default given the recent developments. So they may have quite a bit of say in the immediate future of the company.

Let's hope at the end of this PIs are left with something. Very rarely they are.

[hguess16] 26/11/2016 21:07

Casual,
You seem to be obsessed by the Cayman Lender !.
Maybe it's time to move on to a more optimistic scenario and consider that a new
non-exec director can actually be involved in getting things done for Tethys.
Talking from experience in emerging markets myself, I see no problem in a new non-exec
director coming on board to make a positive contribution to a company.
I simply do not see any whiff of negligence arising here !

[casual47] 26/11/2016 20:11

I would assume so. If he is acting on behalf of Caymans I assume he is there to make sure that whatever happens to TPL his client gets his money back. This may be by already having renegotiated the loan to make it secured. I don't think this would require RNS even so we wouldn't know.

[benandemmiboo] 26/11/2016 19:56

So while we have no clue why Mattias has gotten involved, it makes no sense for him to have gotten involved if he expects a bankruptcy to be forthcoming... Is that fair to say, Casual?

[casual47] 26/11/2016 18:05

Hguess, everything you said he can do as a consultant. Why did they make him a director? Being a director comes with responsibilities enshrined in the companies act. He could be sued together with all the other directors later on should there be a whiff of negligence.

[hguess16] 26/11/2016 17:37

Casual,
I hope Mattias Sjoborg has not got involved purely because of the Cayman loan. If anything, he may be involved in a broader advisory and possibly funding
role for the whole Tethys business. With his cross border and emerging markets
know-how, I would expect Sjoborg to provide Bill Wells and Ken May with constructive advice on a medium term strategy rather than a short-term solution related to the impending call-up of the Cayman loan.
I would further speculate that perhaps Tethys is having second thoughts on the dilution of Tethys shares via the Soosaipillai/Kumar proposal because of the delay in agreeing to that deal, which should have been concluded more than two weeks ago.
It is possible that Sjoberg came in with some new proposals on financing and that Bill Wells has decided that he should come on board.
Let's hope we have some news early next week !.

[casual47] 26/11/2016 12:54

The question is....what has Plena got to do with it, apart from having one of their directors on board?

Plena is an investment company and the reason they are successful is because they are able to raise money for themselves, so unless they are putting money into TPL having the new guy as director is not going to help much in the immediate future.

If he became director as part of some deal between Plena and TPL you'd expect the sequence of events to be: 1. deal is agreed, 2. deal is announced by RNS, 3. Plena are allowed to nominate a director to the BOD.....and not the other way around.

Sure, the new guy may have experience and connections but he is not going to do it just because he's mates with Bill Wells. If the new guy is critical to TPL's success then there must be something in it for Plena or himself personally.

This is why my previous posts on the subject speculated on the Plena guy being perhaps "forced" onto TPL by one of the lenders, most likely the Caymans lender to make sure they get their money back. As the Caymans lender is big on his privacy (the contract of the loan was published with their details blanked out and TPL only refers to them as "Caymans lender") it would make sense for them to nominate someone who can act on their behalf. E.g. perhaps Plena are managing his money on other projects already.

[benandemmiboo] 26/11/2016 12:36

Finally visited the Plena website, and it was nice to see that many of their planned long-term investments ended rapidly after receiving nice buyout offers, for example...

Isokern, a Danish engineering company, was acquired by Plena Group in 1997. Although originally bought for the long-term we received a highly competitive bid for Isokern shortly after its acquisition and the company was sold to a strategic investor in 1998.

Both investments in the "Other" category (from which Tethys would seem to be) were lucrative short-term investments on their end.

[gaaston] 25/11/2016 21:34

TI we are aware of your feelings, shared by all who read this BB. After the dreadful times endured by PI's and some comments made here I very much doubt that the BOD would
be interested in anything posted on ADVFN. However, there are some very good posts giving plenty of ideas as to what could be going on in the background. Good luck to everyone invested

[temporarily insane] 25/11/2016 15:01

So I make that sod all so far!

[temporarily insane] 24/11/2016 19:31

Good comments.

BTW the share price bounced back on TSX with 33% rise on a single 26000 purchase.

Now thats £309

News tomorrow then.....LOL

[hguess16] 24/11/2016 13:36

Casual,
I have been wide awake watching developments at Tethys incl attempts to bankrupt the company by some of the previous senior management and later by financially naive
managers who compounded the dire cash mess that had been created, by applying
" sticking plasters " when major surgery in the form of asset based funding was
required.
My hope is that the new team of Wells, May and now Sjoborg can resuscitate the patient
with some creative funding.
They seem to have now realised, albeit late, that a new realistic approach should be
implemented, immediately.
Let's not panic at this stage, but rather give them some space to come up with a sensible deal.

[casual47] 24/11/2016 12:59

If I'm right about the above we may see an RNS soon that tells us they have renegotiated the Caymans loan (which matures in March).

IMO that would be the only sensible way for both parties -- as the loan was unsecured they don't have much of a choice.

[casual47] 24/11/2016 12:04

Becoming a director of a company is not a trivial thing as it comes with fiduciary duties. Becoming a director of a potentially shinking ship in what could be its final hours is remarkable. The only reason, imo, I can see him do this is because a 3rd party has interests in TPL (e.g. Caymans lender) and they want the new director to safeguard their interests. Or...Plena is planning on getting involved....but then shouldn't they have put forward a deal first, have it announced by RNS (like Kumars did) and then upon starting the deal get him assigned as director?

[casual47] 24/11/2016 11:58

D64 -- any thoughts about the new director?

Was it a regulatory requirement (e.g. minimum 3 directors needed) and he was mates with Bill so a trusted backup?

Could he have been imposed by a lender as a condition for not calling a default so he can make sure there are no further shenenigans? (e.g. the Caymans one)

[dorset64] 24/11/2016 11:53

One point to note when discussing Robson being ousted by Wells, and thus Wells instigating his own team to take the helm, one needs to realise the deep depth of despair Tethys were in back then.

If Robson et al were left in charge TPL would not still be here in any form, as they would had gone bust and completely out of business. Robson was/is a great deal maker but a financier he is not, and the books & accounts plus numerous other issues that Wells & Co took over can not be overlooked or played down.

I for one, even at this stage am more relaxed now that Wells & May are at the helm and with the latest addition to the BoD's one hopes, and thats exactly what it is, hopes for greater things ahead.

I've not spoken to the Co. for a couple of weeks as feel that the last thing they need right now is myself bombarding them with emails/telephone calls as, ultimately they can not & will not tell me any more than what is out there already in full view of us shareholders.

It's a waiting game and I've been in that long I don't think I'll be going anywhere until either this is finally sorted to the good, which I think it will be, or the fat lady sings.

[casual47] 24/11/2016 11:45

If you don't think there is a reason to panic you have clearly been asleep.

TPL is in the emergency room right now. There's still a pulse but the insurance man is thinking of pulling the plug as he thinks TPL can't afford the hospital bills.

[hguess16] 24/11/2016 11:37

I see no reason to panic !.
Having appointed Mattias Sjoborg on 16 Nov as a new director, while still having Bill Wells as chairman actively involved, talk of calling in the administrators is premature !. I hope we hear in the next few days !!.