GREY:OLEPF - Post by User
Comment by
maya123caon Oct 16, 2012 1:13pm
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Post# 20489321
RE: Badr's 13% investment....
RE: Badr's 13% investment.... Tony: You are right about the value of Badr's 13% investment, but for the wrong reason. It has to with accounting principles and trying to determine the Net Present Value of an asset that will mature at some time in the future. The NPV of Badr's 13% will, in Chet's words, "not be worth much". But it isn't because they haven't paid anything, it's because the other partners haven't recovered ("recouped") their expenses. As things stand, Badr has agreed to accept the decision of an arbitrator as to the value of it's share. In effect, you can consider that OLE and Bendon will split the buy-out money 50-50. (The gov't of Senegal's 10% interest will continue to be "carried".) I hope this helps. I am not an accountant.