News: KRL Kangaroo Resources Says PT Bayan To Acquire Kangaroo At $0.15 Per Share, page-37

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30/08/18

18:48

Post #: 35305388
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Originally posted by Mercime ↑

I strongly suspect that the project ended because of an 'event' (markets started buying ultra low CV coal) that wasn't contemplated in the terms. That is why its taken so long through the courts. If it was simply not following 'contractual terms' then it would have been resolved already. It was a 50:50 capital investment project, and when both parties recognised that it was a 'dead horse' they each stopped funding it. White Energy appear to have taken longer for the 'penny to drop' and continued funding a bit longer than Bayan, creating the 'illusion' that Bayan have reneged on the deal.

The legal world has probably made a killing from debating this 'illusion' in court as the contracts would not perfectly fit the reality.

Bayan would likely have invested in the Plant itself, not the technology behind it - so what justification is there for White Energy to attempt seek compensation from Bayan? Both parties have lost their capital investments.

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End of 2011 differnet options to solve the dispute amicably were on the table, e.g. adjusting project parameters on upside / feedstock price for Bayan, temporary production at nameplate capacity and moving the plant later to some other place/customer. For some reason Bayan did not want the plant to run at nameplate capacity. That was reality late 2011.

KRL Price at posting: 11.0¢ Sentiment: Hold Disclosure: Held
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News: KRL Kangaroo Resources Says PT Bayan To Acquire Kangaroo At $0.15 Per Share, page-37

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