Ann: Manora Update - US$27 Million Default of Northern Gulf, page-97

Thanks UZNBUZ (Post 87) for the timely reminder that the failure of the Thai businessman, Chatchai (Northern Gulf Petroleum), to remedy the US$27 million Default Notice apparently means that:
* NGP already has lost the entitlement to access JV data and information
* NGP already has lost the entitlement to attend JV meetings
* NGP already has lost the entitlement to vote on JV matters
* NGP will automatically lose the revenues from Manora sales if the Default continues for 30 days from the Default Notice
* NGP will automatically lose the entire 10% interest if the Default continues for 60 days.

This matter is not over yet but this default may take its full course, especially following the untimely collapse in the oil price.

It must be excruciatingly embarrassing for Chatchai, especially as it has come into the public eye while he is trying to get TAP’s other (80%) shareholders to remove 3 of TAP’s Board members (including the Chairman, and the MD) and instead to accept Chatchai’s nominees into control of the Board.

It bears repeating that this is being attempted with a mere 20% shareholding, and without paying all the other 80% of TAP’s shareholders the usual control premium. Astonishingly, it’s also occurring while there is not just a disclosed potential conflict of interest but there is, in fact, an existing dispute about payments between TAP and NGP (Chatchai).

Watch this space. This matter is going to be spoken about for a long time in corporate Australia.