Exploring my options over Bula Resources holding
Published 25/11/2002 | 00:11
CAN you please tell me if Bula Resources is trading again or if it ever will? I have 5,000 shares in the company that I bought for 9p each some years ago. Is there any chance I will be able to recover my money?
A. The omens aren't good. Bula Resources' shares were suspended from the Dublin Stock Market on April 11 because of concern about the company's financial affairs. Of particular concern to shareholders, expressed at agms and elsewhere, has been the payment of $1.5m to a Bahrain general in 2001.
This money is now due to be repaid to Bula Resources as the current management and board have no intention of pursuing this deal. Bula Resources also signed a deal late last year with a charity associated with the son of General Gadaffi in Libya, whereby the charity would invest ?1.5m in Bula in return for 9m shares.
If Bula can recover the money from the Bahrain general and regain its listing on the London stock exchange, then there will be a market in the shares and your chances of recovering some of your money improve. Unless the price appreciates, you are facing into a loss after brokers' fees. If, however, Bula is unsuccessful in regaining its share trading, you can write off this speculative investment as a lesson learnt.