LGX Oil + Gas Inc ROAOF

RE: RE: RRE: RE:A new beginning or truly the end

[Karmanow]

Joint Venture or Merger or Full Aquisition would potentially allow a profitable canadian company ( or one that pays canadian taxes) to have the legal access to utilize the whole $500 million in tax losses and credits.

Quoted from Arts Affidavit, July 6,2009 - page 2 points 5 and 6.
5)   "if the material creditors(RBC, Sevan and Diamond Offshore)are all of the mind that they do not wish to receive anything other than a pure cash distribution, then Oilexco will seek an order to put a liquidating plan of arrangement to its creditors on or before August 31, 2009....."

6)  One benefit of liquidating of CCAA application, as opposed to a bankrutpsy, will be that the capital losses in the approximate amount of  $423 million and non-capital losses in the approximate amount of $49.2 million WILL BE PRESERVED FOR THE BENEFIT OF OILEXCO ON A GO FORWARD BASIS. MOREOVER, THE PUBLIC SHARE STRUCTURE OF OILEXCO WILL BE PRESERVED. Oilexco wil then be able to attempt to raise financing to utilize the PUBLIC SHELL in an attempt to resume its business operations of drilling and exploring in the UK North Sea.

As it appears RBS (not RBC which is in error in the affidavit) does not and will not want Oilexco shares for debt, then I feel more likely that this will move to a full liquidation and the monitor will be asked to pay out with what little cash there is to debtors. Then, Oilexco becomes a PUBLCI SHELL and certainly can work with a canadian oil company that wants access to the tax pools and a proven north sea explorer.   
It will be highly unlikely that any legal actions will be taken against RBS once the liquidation occurs.
The affidavit is probably as close to a N/R as we are going to get for the next month. Lets hope this moves forward as indicated above and mrmomo and alkhor are correct!
good luck to all
I continue to watch this play out and sincerely hope that Oilexco survives and RBS losses the majority of the money owed to them!!
Karma