IAE Athena Partner Zeus/Lochard is Ripe for a takeAthena 10% Zeus partner is suffering, sp has falled considerably when Lochard revealed they were approached by an undisclosed company for potential M&A talks. At the time, Lochard sp climbed to about 16 pence, but an offer did not happen.
Lochard has no cash flow and is waiting for Athena, the BW Athena delay did not help them.
Lochard sold their Australian business, was sued by the purchaser in Australia, recent court case ruled agst Lochard, and now are awaiting damages agst them to be announced by the UK court soon.
https://www.bailii.org/ew/cases/EWHC/Comm/2011/3382.html
https://www.iii.co.uk/investment/detail?code=cotn:LHD.L&display=news&it=le
In the meantime Lochard energy sp is at 8 pence, market cap down to approx $30 M Cdn only.
Also to fund their expenditures for Athena they took a loan at 84% interest
"As at 30 June 2011 A$11.326million had been drawn down on the total loan of A$13.214million. The difference between A$11.362million drawn down and the financed liability of A$16.394million represents imputed accrued interest on the loan. The effective interest rate of the Gemini loan is approximately 84% per annum. The high rate of effective interest rate is due to the financier taking into account the production and project execution risk."
In the UK, Lochard suffered a double blow after first oil from the Athena development was delayed until late February or March, and it lost a court case brought by Senergy claiming damages in respect of alleged contracted works not carried out. A further hearing in early 2012 will determine the amount of costs followed by a later hearing in Q2 that will set the level of damages, which could range between $3.5m and $12.2m plus interest. In aggregate, this lowered our core NAV by 4.1p to 3.7p/sh, although including appraisal opportunities, the stock continues to trade at a substantial discount to NAV.