Primeline Energy Holdings Inc V.PEH.H

RE:RE:Primeline and Husky against CNOOC

[funkyschnitzel]

I'm running on the assumption that this is merely a business practice, and not as antagonistic as it might seem.  CNOOC has conflicting interests here, they have assets and investments on both sides of this equation.

Zheijiang Gas wasn't paying the bills.  PEH therefore can't pay their own bills.  CNOOC, given the conflict of interest, is in a difficult spot in terms of pressuring ZG.  PEH tried to go after Zhejiang Gas directly, but wasn't able to.  So they've gone aftertheir partner to force CNOOC to take action against ZG.  I don't think anyone in this scenario is surprised or offended.  It's just business.  Now CNOOC will have an excuse to apply pressure to ZG ("We don't really want to do this, but Primeline is MAKING us do it!")

The biggest questions are whether they will get paid and how much (ie: how this legal action falls out) and, perhaps more importantly, whether PEH can keep afloat, cover payments and/or come to terms with the banks to whom they have liabilities due.

It's easy enough to look at this and think that the Canadian company is going to get screwed by China, but keep in mind, the majority of the company is owned not by Canadians, but by a very wealthy and well connected Hong Kong businessman.