Friday, January 9, 2015

Battle Lines Drawn in latest BhartiTard War - Update I

The Globe and Mail reports in its Friday edition the battle over lavish insider payments and governance practices at a struggling junior managed by mining promoter Stan Bharti is going to court.

Justice Herman Wilton-Siegel agreed Wednesday to hear an application by activist Ryan Morris to block a private placement of stock and $11.3-million in potential payments to five insiders, including a company controlled by Mr. Bharti's family, at Aberdeen International. An application filed with the court Monday by Mr. Morris's fund Meson Capital Partners and Aberdeen shareholder Nightscape Capital of Britain alleged the potential payments would be "oppressive" transfers of shareholder value that "unjustly enrich the insiders."
"Funds controlled by Meson Capital Partners LLC and Nightscape Capital (UK) LLP, which hold shares representing approximately 9 per cent of the issued and outstanding shares of Aberdeen International Inc., have filed their information circular for the special meeting of shareholders requisitioned by the concerned shareholders scheduled to take place on Feb. 3, 2015.
The concerned shareholders cite Aberdeen's underperformance and egregious governance deficiencies as primary reasons for board change.


Stay tuned for updates Folks. A body just CAN'T (unless they hold BhartiTard paper) put a price tag on this pure gold.

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We are travelling back in time to get a true picture of advanced Bhartism. Context is everything and this space can't do a lot better than what we've spewed about PREVIOUS BhartiWad enrichment schemes over the years.

So today's bad news at FMC.to is all about a strike ...

FORBES COAL REPORTS LABOUR DISRUPTION

Commencing at the beginning of the day shift on Oct. 17, 2012, some of the employees at Forbes and Manhattan Coal Corp.'s Magdalena and Aviemore underground mines have commenced peaceful strike action.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aFMC-2004464&symbol=FMC®ion=C

Do we actually need to hear today's "new" rubbish from the recently re-elected Bharti Boy, Stephan Theron? The same Stephan Theron that was almost bursting with dopey bullishisms yesterday? I know I sure don't but here we go ...

"The situation at the operations is under control and being monitored ..."

Excellent Mr. Theron. Keep up the arsesome "work".
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UPDATE - October 16, 2012. - Redux
No doubt feeling the extreme heat from the court of public opinion, as well as feeling the effects of cutting one's nose off to spite the completely dopey face, the powers that be at Forbes and Manhattan Coal Corp (FMC.to) have folded 3 seats on the BoD to the opposition ... "FORBES & MANHATTAN COAL ANNOUNCES NEW BOARD COMPOSITION

Forbes and Manhattan Coal Corp. has implemented an amicable reconstitution of its board of directors following discussions between the company and Resource Capital Fund V LP (RCF), one of Forbes Coal's major shareholders.

As a result of these discussions, Forbes Coal's board has been reconstituted, as follows: Stephan Theron, Stan Bharti, Bernard Wilson, Ryan Bennett, Mike Price, John Dreyer and Craig Wiggill."

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aFMC-2004096&symbol=FMC®ion=C


Stephan Theron
Co has also released numbers and how wonderful is a 225k bottom line loss for the quarter? Pretty damn awesome and totally fantastic according to extremely well compensated F&M management types. And HOW well compensated for the quarter you ask?

Consulting and professional fees $ 713,000
General and Administrative $ 1,782,000

"I am again pleased to report that Forbes Coal continues to grow production, revenue and profit. On the back of these strong set of results in a challenging coal market environment and with the recent announcement of the ZAC acquisition, we believe that the company is going from strength to strength in terms of both performance and achieving its growth strategy,"

Serious backtracking aside (again) has anything really changed with F&M? Probably not. Once this extreme storm of public disgust blows over it will be back to business as usual this observer thinks.

Damage to the F&M reputation, and plenty of it, has been done.

In that vein, the National Post has released a story about the Sulliden AGM ...

"All of which brings us to the recent annual meeting of Sulliden Gold Corp., which released the voting results for the election of directors. All of the eight nominees received at least 50% for votes except Stan Bharti, who runs the Forbes & Manhattan group. Bharti received a mere 29.28% for votes and 58.17% withheld votes. The rest, 12.55%, didn’t vote."

"What’s unusual about the voting pattern is that two of the three directors who received about 60% for votes — Leonard Harris and Bruce Humphrey — were on the compensation committee that recommended the milestone-based bonus plan. George Fraught, the third member of that committee, received 74.68% for votes.

Leonard Harris

Bruce Humphrey

George Fraught


Take a bow gentlemen and is it not obvious that everyone KNOWS who the actual power is behind the straw men/nominees?

http://business.financialpost.com/2012/10/15/sulliden-gold-shareholders-re-elect-directors-except-one-after-controversial-executive-bonus-package-axed/
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"there's a lot of leverage in Aberdeen" (8/11/10) Aberdeen International Inc. - The Gold Report Interview with Stan Bharti" http://www.theenergyreport.com/pub/htdocs/expert.html?id=2642

Gotta agree with that assessment 100% Mr. Bharti ...

"How to Pocket $5MM For Losing Over a Quarter of Company’s Assets in Only Six Months

It was a tough year to be a shareholder of Aberdeen International ( AAB.TO). In the first six months of 2012 the net loss amounted to over $26MM or over 25% of the assets, the net asset value (NAV) at the end of the period was less than $72MM (from $136MM in the early 2011), the share price declined 40%, and the market cap dropped under $35MM.

But while shareholders felt the pain, the management was doing great: “salaries, consulting, benefits, and bonus” increased sharply compared to prior years: for the past six months it was $5,459K compared to $600K in 2011 and $798K in 2010. Most of the difference was due to increase in the “key management remuneration” which added up to $4,870K in benefits and shares – 7% of the NAV and almost 15% of the market cap - in just six months. By any reasonable measure, the “key management” awarded itself compensation that is way out of proportion to company’s overall performance or assets."
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UPDATE - October 15, 2012.

As we look further into those amazing Bharti ethics, the shenanigans at Forbes and Manhattan Coal Corp (FMC.to) come into sickening focus.

"EXECUTIVE CHAIRMAN OF FORBES AND MANHATTAN COAL CORP. DISALLOWS PROXY VOTES SUPPORTING THE CONCERNED SHAREHOLDERS AT ANNUAL GENERAL MEETING

Forbes and Manhattan Coal Corp. held its annual general meeting Sept. 17, 2012, and the executive chairman, Stan Bharti, disallowed proxy votes that supported the concerned shareholders' board nominees by an overwhelming majority.

As a result of the technical invalidation of proxy votes which the concerned shareholders (Resource Capital Fund V LP, Terrafirma Securities Holdings LLC. and Skye Alba Pty. Ltd.) believe is improper, management's slate of directors was purportedly elected. This means the key issues of a lack of transparency and poor corporate governance at the company will not be addressed. It is disappointing the executive chairman failed to listen to the voice of the shareholders, and this has resulted in the purported election of an entrenched captive board."

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aFMC-1996975&symbol=FMC®ion=C

Can one be faulted for assuming Mr. Bharti acts in his own interests exclusively and NOT those of his constituents? These are hardly isolated incidents and the inference is clear. If a body judges a deal by it's management, the F&M group has conclusively demonstrated to everyone what regard it pays to fiduciary responsibility. Zero.

It is interesting that this BoD, until proven otherwise, has no moral authority to "do" a damn thing. (including collect a salary). In a very real sense they should not be occupying those offices at all ... and that point appears to need a Supreme Court judge for clarity.

"He believes in finding the best people to run his companies. He guides CEOs and Presidents but encourages them to run their businesses on their own and do their own thing. He doesn’t waste time on long formal meetings but is more spontaneous in his approach. His group has a strong comradery. Stan encourages all of his people to have fun while working, to have excellent results, to be successful and reap large financial rewards."

http://www.metalsnews.com/spotlight.aspx?ArticleID=71400
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UPDATE - October 14, 2012.

The unsung hero to the masses and wicked ongoing thorn in Bharti buttock has been Otto Man over at Incakolanews. It may have been Otto's outraged sputum that was picked up on BNN and thereafter by the Financial Post.

This time Otto Man has tracked the results of the SUE.t AGM and yes indeed Otto Man, how the flying fuk can a chief public company dog who pulls down multi-millions get installed with more votes against than for?

It truly does beg the question ... could my dog and his anus have gotten elected to the SUE board had I simply started a proxy fight in time? Chit.

http://incakolanews.blogspot.ca/2012/10/the-sulliden-sueto-agm.html
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While not quite falling to the sub-basement levels we are used to, it would be an offense not to record the recent bad press in the National Post and elsewhere regarding Mr. Stan Bharti, ultra grand poohbah of Forbes and Manhattan.

Sulliden Gold (SUE.t) has very quickly rolled back a “milestone-based bonus plan” after being outed with extreme gusto and geeze bloody louise what makes SUE any different from the many other F&M deals? Not too much in this opinion.


In the case of Sulliden Gold ... "on the advice of its three-person compensation committee, has just put in place a so-called “milestone-based bonus plan” that could pay a group of insiders and consultants at least $17.1-million over the next three years. "

“It’s egregious. It sets a terrible precedent for others in the mining industry, given that the industry needs foreign investors to fund the projects,” said one fund manager whose fund doesn’t own the shares ..."

“Good corporate governance attracts investors and what we have here is awful corporate governance,” added the fund manager, noting some of the elements of the nine-point milestone bonus plan “amount to nothing more than the executives doing their job. They are already getting paid to do that.”

"While the milestone bonus will put cash in the jeans of the insiders, the insiders didn’t feature too badly for the 12 months ended April 30, 2012: six of them received payments for options and incentive plans of $6.372-million."

http://business.financialpost.com/2012/10/03/sulliden-gold-could-face-backlash-against-compensation-plan/



All those real bad words sure got the attention of the frikkin big shots and pronto as the wonderful plan was axed the next day ...

“The board of directors felt that a milestone-based incentive plan would align management focus and shareholder value with a view to the best interest of the company. However, in light of shareholder input, the board has decided to terminate the plan,” the company said in a statement.

"One fund manager, who asked not to be named, expressed relief that this issue got the attention of investors. “This type of corporate practice could very well have been perpetuated for years and gone unnoticed. Hopefully this activity has raised the awareness level of the regulatory bodies in this country,” he said.

http://business.financialpost.com/2012/10/04/sulliden-gold-cancels-controversial-bonus-plan/


http://watch.bnn.ca/#clip775936(Starts at 5:36)



For bloody shame Mr. Bharti. Tsk Tsk Tsk.