SDL (ASX) What has kept Mr Porter at the negotiating table?

Originally posted by pikapika ↑

Hi All

I am really curious what has kept Porter at the negotiating table?

Mr Casello told us SDL has made significant progress in reaching a settlement with Mr David Porter in relation to both Supreme Court actions. The Company anticipates it will finalise the settlement and announce the details shortly.

Whatever offered to Mr Porter in order to reach a settlement must be very attractive to him. What would that be?

I doubt Mr Porter wasn't comprehensively briefed about the EPC contracts delay appearing in the same notice as the settlement for BOTH cases which is being finalized.

Is he comfortable of the solutions being actively pursued?

Also, SDL is negotiating with Mr Porter on BOTH Supreme Court cases. Why does SDL want to roll in a yet to be scheduled retrial case into the negotiation when SDL is currently in a relatively weak financial position?

As a publicly listed company with disclosure obligations to the Shanghai Stock Exchange, CGGC has not said a single word about the EPC contract delay. Maybe the solution Cameroon and China are working on is sooner than we think.

Casello looks like a man on a mission.

Is the solution to the EPC contract delay taking shape?

Why settle the retrial when SDL has a better than even chance of winning again? Why the hurry to settle?

Is SDL clearing the deck for something big at the corporate level that requires ridding of any loose ends?

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Pikapika,

Personally speaking I would see clear benefits for SDL to rid itself of a couple of skeletons in the cupboard by way of settling matters with Mr Porter, including smoothing out the path for likely further loans from stakeholders. If I was negotiating on behalf of SDL I would certainly let Mr Porter know that it was in his interests to negotiate any cash settlement quickly or risk SDL going into administration and he then having to take his place in the queue with other creditors.

We are now in the hands of the relationship between the Government of Cameroon and China Inc. and to a lesser extent the antics of BHP, RIO and Vale, but do not count on them reducing the supply of iron ore. My understanding is that SDL has nine months to finalise its arrangements after the two governments (China state EPC) have finalised their arrangements, so the ball is in their court, but will SDL be able to mothball the company and absolutely minimise costs until such time?

David