I'm not sure Doug has any control of what happens in the future, other than keeping VZ's feet to the fire and doing what he can do to sieze VZ's assets.
Legal fees, as they pertain to the ICSID, should be finalized and came to a few million dollars. There are probably more as GRZ attempts to go after VZ's assets.
I'm curious to know how you arrived at your valuation of $11-12 per share, after the $734 million award was announced. I came up with about half that based on 95 million fully diluted shares. Remember, Doug said a substantial percentage of the award would be distributed to share holders, so, whatever the value is, we'd only get a percentage of that.
Interestingly, I just read management's overview of the award and saw something I hadn't seen before. According to management, the interest rate on non-payment of the award is Prime + 2%, which is 5.25%.
The ICSID award state the interest rate on the award is LIBOR + 2%. The 1-year LIBOR rate is less than 1%.
The I.R. (P.R.) department did its job. It cast the most favorable light on the situation. The company could be a hair away from BK and today's news release would be totally correct. It was vague, leaving themselves with plenty of wiggle room no matter what eventuality comes about.
I look at the fall in share price and conclude the chances of something bad happening is much greater than something good happening.
I find it hard to believe that VZ would be pawning their gold as a means of paying GRZ. GRZ is owed 75% of that $1 billion. VZ has more important things to spend that money on, at least in their eyes.
in Proceedings to Confirm $740 Million Award Instituted by Gold Reserve
SPOKANE, Wash.--(BUSINESS WIRE)--Mar. 30, 2015-- Gold Reserve Inc. (TSX.V:GRZ) (OTCQB:GDRZF) (the “Company”) is pleased to report on developments in the proceedings instituted in the U.S. District Court for the District of Columbia to confirm the US $740 million arbitral award dated September 22, 2014 (the “Award”), rendered against the Bolivarian Republic of Venezuela (“Venezuela”). On March 27, 2015, the Court entered a default against Venezuela following its failure to file an appearance within the prescribed deadlines in the proceedings instituted by the Company.
buyuranium, thanks for that post. In the past days, I've gone from being a pretty solid pessimist to somewhat optimistic. I couple of months ago I had thoughts of getting close to nothing. Maybe adding to my position isn't too risky.
Good luck to us all.
Just to clarify my point, I was mildly in favor all along of settling with VZ simply because I didn't think they would pay. That we should be happy getting a substantial portion of the award.
VZ's penalty for delaying or not paying is simply the cost of LIBOR interest which is peanuts compared to what they pay to borrow money.
Now, from what I read, where non-payment is considered default, and if the seizure of assets is as easy and enforceable as some say, then the ball is our court. No settlement.
So perhaps it would be a mistake for GRZ to negotiate a settlement with VZ. To negotiate is to essentially settle for less than the full award amount, making it more appealing for VZ to pay up sooner rather than later.
But if VZ's assets, especially cash, can be easily seized, then hell, let them feckers come knocking on OUR door with an offer. Settling really comes down to how confident each side is in their stance.
I will bite my tongue and simply say I am quite sure (but don't have first-hand knowledge) the company is doing something. Probably quite a bit. We just don't know exactly what.