Big Banc Split Corp T.BNK

dispute

[grantoue]

sounds like the dispute is mainly over the very large amounts of delutants that were used to recover the oil in 2011 and the amount used now to recover the same amount.. BNK says the technology and equipment used in later years changed the consumption of delutant. i was told the initial audit took 14 months too examine 400 pages of reciepts and BNk believes the dispute will be resolved in the next month.

[braincloud]

That is correct. However I doubt it will be resolved in a month. I'd suggest more towards the end of the quarter. That said, it will provide the auditors going forward a blueprint so that there aren't anymore stupid claims on the part of the Albanians for future audits. They shouldn't have ever used threats to get money from BNk to fund short falls in fiscal revenue. What's more

[grantoue]

Bankers will survive this. hopefully all the major producers  cut production and get the price to a more profitable number. maybe they are doing the same thing as the saudis and trying to kill all the small producers and pick up there assets for cheap. pretty ugly game 

[wallop13]

I didn't know that was what the ALBS were questioning. That sounds pretty stupid. I really don't know how the ALBS would know the amount of diluent required. If that were the case, then where is the extra money? I hardly think BNK would challenge the tax authority if the expense was not above board. It will be nice to get this sorted next month, because this is complete BS.

[braincloud]

Maybe you ought to do some reading first to understand what's what. It doesn't involve a challenge. Please do some research beforehand.

[grantoue]

Bankers books are audited by KPMG so I would say they are legit. 

[wallop13]

Of course it's a challenge. They're not accepting the ALBS position, are they? I've done plenty of reading. You tell me where it says that the ALBS claim the diluent amount used in 2011 is what they are questioning? I thought the issue was untendered contracts.

[good40]

I agree wallop13... tough to imagine why anyone would deny that the government challenges their books. There is absolutely no way that the government can disallow all of their 2011 taxable allowance, that is a reasonable assurance, however exclusions that may be found might also affect the years following 2011. Probably the reason behind Bankers' decision to reimburse the entire $50 million

[braincloud]

They haven't "reimbursed" anything! The $50 million is what the compromise was to release access to the local bank accounts. The funds advanced will be applied against future royalty streams. It was the decision of French to arrive at some solution so that work could continue.

[braincloud]

It started with the diluent importation then they accused them of inflated costs. Everything from salaries to drilling contracts. It escalated from there. There was reference given to the tax conflict almost a year ago. From what I understand, the government was running short of money. Bankers was an easy mark. The Azerbaijani Bank left the country owing some considerable amount of money