First, the draw for the winner of 2 free tickets to the Muscat Rugby club fund raiser, a comedy night featuring up to a dozen comedians on Thursday May 13th and held at the Muscat rugby club near the ABA school in Al Khuwair.
The draw was held under the usual supervision of Ms Dragon and a very senior member of the Internal Security Service on Monday evening. And the winner was...
"Delirious in the Desert"
Congrats DITD! Enjoy. I've been promised a review and pics. The rest of you, there are still tickets available.
Well connected fan Ibrahim made a great comment on the last Blue City story, and I'm reposting here, because this information is accurate and hard to find.
Your blog is hugely popular. Your accurate and authentic information is sincerely appreciated. Let me add some more data on the blue city project. Hopefully those maroons who messed should wake up. Its about time His Majesty Qaboos asks Anees to shut up and get out of the project. Enough of wasta boss.
Issuer = Blue City Investment 1 Limited (Commercial Registration No. WK163178) incorporated in Cayman Islands for the purpose of issuing Class A, B, C & D Notes worth US$ 925 Million. Borrower = Blue City Company 1 SAOC (Commercial Registration No. 1/83627/7) incorporated in Oman.
On 7th November 2006 Blue City 1 SAOC signed Intercompany Loan Agreement and received US$ 921,400,960 as follows: Class A1/Class A2/Class A3/Class A4 – 658,982,625; Class B – 142,200,630; Class C – 50,217,705 and Class D – 70,000,000.
There were many PARTIES to the transaction. Namely, (1) The Bank of New York as Offshore Security Trustee (2) Bank Muscat SAOG as Onshore Security Trustee (3) Bear Stearns Bank Plc as Class A guarantor (4) The Bank of New York as Offshore Account bank (5) Bank Muscat SAOG as Onshore Account bank. Bear, Stearns International Limited were the arranger and Oppenheimer (Samuel Grossmann) as the brokers.
Clifford Chance drafted all agreements and Iain Morpeth is the man in-charge. The Intercompany Loan agreement contains a number of representations, covenants and events of default which are subject to a Material Adverse Effect qualification. Project documents specified are: Development agreement, Construction contract, construction security, construction contract guarantee, land transfer agreements, Works agreement, Balance of Work agreement, Additional Works Agreement, etc.
Government of Oman represented by its ministers (Tourism, National Economy and Commerce & Industry) have signed & ratified agreements, why are these ministries keeping silent?
If the SEC (Securities and Exchange Commission of the USA) can take on Goldman Sachs for fraud, why spare Blue City? US$ 50 Million was held in the Blue City 1 SAOC’s Bank Muscat account as escrow, where is that money?
US$ 20 Million was escrowed for the purchase of Al Sawadi Beach Resort Hotel and of the associated usufruct, where is that money?
Blocked escrowed for the company was US$ 105,417,358, where is this money?
US$ 440,588,374 was the total initial mandatory deposit that was made with the issuer (Blue City Investment 1 Limited, Cayman Island). Where is the audited financials for Blue City 1 SAOC and Blue City Investment 1 Limited???
Can somebody from Blue City 1 SAOC answer?
Here, here Ibrahim. And not even a press release in the Times of Oman explaining the total normality of the bankruptcy, global crisis, just look at Dubai, etc etc etc. How peculiar!
As for those bonds, you might be interested to know the latest market prices*, as advised by a trusted source in a GCC National Bank treasury outfit. Pricing of a $100 Blue City Bond as of the 27/4/2010 was:
Secured tranch Class(A1) $35.55
Secured tranch Class(A2) $30.50
Subordinate tranch Class (B1) $25.35
Subordinate tranch Class (C) $20.35
Subordinate tranch Class (D) $10.40
Bare in mind that the tranch A1 was priced at closure at $98.50 and reached once upon a time to the whereabouts of $120!
Wow. Way to destroy value ASIT team!
The secured A1 & A2 bonds seem to have a very small spread against the absolute D class junk, given they are supposedly fully secured on billions of dollars worth of 25km2 of Al Sawadi land. This can only reflect the way the market is currently pricing the competency and trustworthiness of the people behind Blue City, or they'd instead, IMHO, be up around 70-80 cents (just compare with unsecured Dubai Holdings bonds recently).
*This is just for information and is not a recommendation for people to act upon or invest. Muscat Confidential does not provide investment advice. Readers are strongly advised to always obtain advice from their own legal and financial advisors before making any financial commitments that would require them to pour good money after bad.