update, page-22

I would have to say I am impressed with how the 3rd LARGEST SHAREHOLDER IN THE COMPANY has handled this difficult situation. It has been mentioned before that securing the Noble $20M was critical to keeping things moving, this has become even more so apparent. Rather then sit and wait for the bankers to crawl their way to an approval and screw RES over he showed he was prepared to look at all options to ensure the wheels kept turning. Having said that…..with his rejection of the revised credit approval offer he has also demonstrated that he would not be desperate and agree to terms that were not in the best long term interests of the company. It would have been incredibly easy for a Managing Director to agree to the last minute change to credit terms (skewed towards the bank) just so he/she could tick of a key performance measure of getting finance approval and hence ensuring their annual bonus….not in PJ’s case. He has 15 million reasons to ensure that shareholders are looked after. Again just think if he hadn’t moved on securing the $20M from Noble…would he have had the courage to say NO to the finance package after this approval process has dragged on for so long and the project stalled for this entire period? I am sure many would have accepted second best just to get things moving.
I am very disappointed with not obtaining finance (yet) and also nervous with what the future holds for RES…..but I do take a lot of comfort in the fact that the person in charge of ensuring this operation achieves its full potential is 100% committed to getting the best outcome for me as a shareholder.
From today’s events is see the following
The negatives;
1) There is still SUBSTANTIAL risk in play with no funding in place
The positives;
1) The finance was APPROVED (very different to rejected) which validates the operation’s viability and potential
2) The man in charge is working for all shareholders which is not always the case
Will be very interesting to see how the next 2 weeks play out.
Good luck to all LT’s