Frontera Energy Corp T.FEC

RE:RE:RE:RE:From Tonight's SH Energy Report

[kcac1]

Zey,

Do you have access to the actual CGX contract?  If so, see how it addresses CGX filing for reorganization bankrupcty. And would laws of Guyana apply or other countries such as Canadian bankruptcy laws apply since multiple countries are involved. And with multiple countries involved, if it could be advantageous for de Alba, FEC and CGX to file for CGX reoganizational bankruptcy and under which bankrupcy laws would it fall? As it sure seems that de Alba is forcing CGX into bankrupcy giving them no way to raise $$ or pay their bills.

Filing for reorganizational bankruptcy, such as under Chapter 11 of the U.S. Bankruptcy Code, can indeed impact government contracts. Here are some key points to consider:

1. Automatic Stay: When a company files for bankruptcy, an automatic stay is typically imposed. This stay halts most collection activities, including actions to terminate contracts1.

2. Federal Acquisition Regulation (FAR): Government contracts often include a bankruptcy clause (FAR 52.242-13), which requires contractors to notify the contracting officer of the bankruptcy filing within five days2.

3. Anti-Assignment Act: This act restricts the ability of contractors to assign government contracts to another party without government consent1.

4. Contractual Relief: Bankruptcy may limit a contractor’s ability to seek contractual relief, such as equitable adjustments1.

5. Government’s Rights: While the government may have limited ability to terminate contracts due to bankruptcy, it still retains certain rights and may seek to protect its interests1.