DID THE DOCTOR PULL THE PLUG? | Vital Football

DID THE DOCTOR PULL THE PLUG?

pies'r'us

Vital Youth Team
#1
The terms of the loan agreed between IEC and NLF left a balance of £4.4 million as working capital for the club which commenced upon the sale completion; 29 May 2020. But however, we were paying interest at £38,000 per week and this was one of my prime concerns for our future.

As described previously, the clubs cash 'burn rate' was circa £155,000 per week, based on last years accounts. So I calculate over the interim 5 weeks = £775,000 spent - which leaves £3.625 million left in the kitty. Other monies ie. solidalitory and EFL payments circa £7.5 m were due in not too long a time. In relative business terms: this must rank as a first for a business with the above financial resources going into administration. Therefore, I can only reach one conclusion.
 

king_dezeeuw06

Vital Football Hero
#2
The terms of the loan agreed between IEC and NLF left a balance of £4.4 million as working capital for the club which commenced upon the sale completion; 29 May 2020. But however, we were paying interest at £38,000 per week and this was one of my prime concerns for our future.

As described previously, the clubs cash 'burn rate' was circa £155,000 per week, based on last years accounts. So I calculate over the interim 5 weeks = £775,000 spent - which leaves £3.625 million left in the kitty. Other monies ie. solidalitory and EFL payments circa £7.5 m were due in not too long a time. In relative business terms: this must rank as a first for a business with the above financial resources going into administration. Therefore, I can only reach one conclusion.
Pies from your understanding of the finances with the exception of the loan amount to be repaid to IEC you've already mentioned does the club owe anyone any other money?
 

Hampton

Vital 1st Team Regular
#3
I'm somewhat concerned by the statement made by Krasner from Wigan today that discussions with lawyers around potential illegal activity will not take place for 2 weeks after the end of season completion is secured (understandable) and creditors are addressed (really !)
Given that the major creditor IEC is at least in part responsible for the administration and could well be complicit in any subsequent legal action surely this is fundamentally wrong ?
Again, no finance expert but if interest due to IEC are to be paid against funds agreed within that deal which the club has not received surely this should be halted until any legal implications are investigated ?
Call me cynical but the fact that these administrators were instructed by whoever actually owns the club and are also involved with the majority creditor creates a conflict of interest ?
It would be more reassuring if the board of WAFC had appointed administrators rather than the prick who has sold us down the river IMO - smells worse and worse this 😪
 

ZAKKY

Vital 1st Team Regular
#4
The terms of the loan agreed between IEC and NLF left a balance of £4.4 million as working capital for the club which commenced upon the sale completion; 29 May 2020. But however, we were paying interest at £38,000 per week and this was one of my prime concerns for our future.

As described previously, the clubs cash 'burn rate' was circa £155,000 per week, based on last years accounts. So I calculate over the interim 5 weeks = £775,000 spent - which leaves £3.625 million left in the kitty. Other monies ie. solidalitory and EFL payments circa £7.5 m were due in not too long a time. In relative business terms: this must rank as a first for a business with the above financial resources going into administration. Therefore, I can only reach one conclusion.
Go on say it, say it
 

moonay

Vital Champions League
#5
I'm somewhat concerned by the statement made by Krasner from Wigan today that discussions with lawyers around potential illegal activity will not take place for 2 weeks after the end of season completion is secured (understandable) and creditors are addressed (really !)
Given that the major creditor IEC is at least in part responsible for the administration and could well be complicit in any subsequent legal action surely this is fundamentally wrong ?
Again, no finance expert but if interest due to IEC are to be paid against funds agreed within that deal which the club has not received surely this should be halted until any legal implications are investigated ?
Call me cynical but the fact that these administrators were instructed by whoever actually owns the club and are also involved with the majority creditor creates a conflict of interest ?
It would be more reassuring if the board of WAFC had appointed administrators rather than the prick who has sold us down the river IMO - smells worse and worse this 😪
I just posed a similar question to Paul Kendrick when he mentioned the possible litigation :
How will it play, that the same litigation that might be to the benefit of the creditors (IEC......ie Choi) will also likely be to the detriment of the owners (Next Leader Fund LP ......also Choi). Presumably, the interests of the creditor PLC takes precedent over Choi the man.

I suspect it's merely a procedural issue ....... sort out the administration and sale, and then look at the reasons behind it. ....... unless of course, something appears obviously wrong (fraudulent? ) during the completion of the process.
 

Made in Wigan

Vital Football Hero
#6
I'm somewhat concerned by the statement made by Krasner from Wigan today that discussions with lawyers around potential illegal activity will not take place for 2 weeks after the end of season completion is secured (understandable) and creditors are addressed (really !)
Given that the major creditor IEC is at least in part responsible for the administration and could well be complicit in any subsequent legal action surely this is fundamentally wrong ?
Again, no finance expert but if interest due to IEC are to be paid against funds agreed within that deal which the club has not received surely this should be halted until any legal implications are investigated ?
Call me cynical but the fact that these administrators were instructed by whoever actually owns the club and are also involved with the majority creditor creates a conflict of interest ?
It would be more reassuring if the board of WAFC had appointed administrators rather than the prick who has sold us down the river IMO - smells worse and worse this 😪
I understand your concerns, but administrators are professional and are answerable. The fact they made that statement, as diplomatically as they could, tells you they have concerns and are protecting themselves.

Essentially choi and that other **** knows time is of the essence and are hoping a purchase will be agreed and it goes through without much scrutiny.
 

Hampton

Vital 1st Team Regular
#7
I understand your concerns, but administrators are professional and are answerable. The fact they made that statement, as diplomatically as they could, tells you they have concerns and are protecting themselves.

Essentially choi and that other **** knows time is of the essence and are hoping a purchase will be agreed and it goes through without much scrutiny.
Answerable to whom ? 🤔
Again - who appointed them and who is the major creditor - clear conflict of interest
Don't give a flyer what Choi wants and any deal given what's happened needs the closest of scrutiny as waving things through on the nod got us to this sad place
If IEC are given a penny in interest from the sale of any assets against a potentially fraudulent deal the administrators would not be acting in the clubs best interest IMO.
Imagine having to pay interest on a car lease when the delivery of said car has been cancelled - wouldn't happen !
 

moonay

Vital Champions League
#10
Answerable to whom ? 🤔
Again - who appointed them and who is the major creditor - clear conflict of interest
Don't give a flyer what Choi wants and any deal given what's happened needs the closest of scrutiny as waving things through on the nod got us to this sad place
If IEC are given a penny in interest from the sale of any assets against a potentially fraudulent deal the administrators would not be acting in the clubs best interest IMO.
Imagine having to pay interest on a car lease when the delivery of said car has been cancelled - wouldn't happen !
I'm sure if they discover obvious evidence, then priorities may change, but surely at the moment, the first requirement is to secure the future if the club ....... by selling it and paying the creditors. If they happen to find owt wrong, then I'd still want em to sell the club ........... but they they may hold back on paying anyone.

But ............... I'm not an accountant, so I'm only speculating.
 

ZAKKY

Vital 1st Team Regular
#11
OK...
when DW decided to depart - Latics needed a benefactor but unfortunately we got a predator who ripped the heart and soul out of the club. Will that do you?

Thanks I really admire your knowledge and ability to understand these complicated matters and look forward to your next summing up of the latest developments.
Your article The End of the Pier was superb.
 

pies'r'us

Vital Youth Team
#12
Pies from your understanding of the finances with the exception of the loan amount to be repaid to IEC you've already mentioned does the club owe anyone any other money?
Obviously, I don't know the day to day running of the club nor of it's debts but remember; IEC have been paying our shortfalls and losses - £24.6 million and also we've had a clean start from 29/05. You have to be realistic, how much money is this club burning? I doubt we've accured a £4+ million debt within a 5 week period to negate the 'loan' and remember; we've applied to go into administration and not been forced by a creditor.
 

Hampton

Vital 1st Team Regular
#13
I'm sure if they discover obvious evidence, then priorities may change, but surely at the moment, the first requirement is to secure the future if the club ....... by selling it and paying the creditors. If they happen to find owt wrong, then I'd still want em to sell the club ........... but they they may hold back on paying anyone.

But ............... I'm not an accountant, so I'm only speculating.
I'm no accountant either but if feels very wrong to me that the creditors may well include IEC chasing interest on a loan made against the club which the club have received not a penny of !
Seems we have been taken out by 2 silent ninja assasins who are likely to walk away from this high fiving each other
 

moonay

Vital Champions League
#14
Seems we have been taken out by 2 silent ninja assasins who are likely to walk away from this high fiving each other
Not necessarily. The administrators need to get us sold...... sharpish. Whether or not any of that money eventually gets given to IEC - and specifically Choi, is another matter completely.
 

ZAKKY

Vital 1st Team Regular
#15
Please remind me again how we owe anyone 24.6 million.Dave Whelan said we were debt free when he sold us 18mths ago. At losses of £9 million a year that equates to £13.5 million in 18mths if indeed they have put that in so where does the other 11 million come from.
 

moonay

Vital Champions League
#16
Please remind me again how we owe anyone 24.6 million.Dave Whelan said we were debt free when he sold us 18mths ago. At losses of £9 million a year that equates to £13.5 million in 18mths if indeed they have put that in so where does the other 11 million come from.
It's similar to the Liverpool and Utd situations of a few years ago.

The new buyer borrows the money to buy us (£24m, or whatever), thus creating a creditor in the name of the one loaning the money ........ IEC .....with Choi as Chairman !

It stinks.
 

Made in Wigan

Vital Football Hero
#17
Answerable to whom ? 🤔
Again - who appointed them and who is the major creditor - clear conflict of interest
Don't give a flyer what Choi wants and any deal given what's happened needs the closest of scrutiny as waving things through on the nod got us to this sad place
If IEC are given a penny in interest from the sale of any assets against a potentially fraudulent deal the administrators would not be acting in the clubs best interest IMO.
Imagine having to pay interest on a car lease when the delivery of said car has been cancelled - wouldn't happen !
Couldn’t give a fuck what that **** Choi wants either. The administrator is licensed and his conduct monitored, they have to act professionally and responsibly. This was all so unnecessary, particularly at this time, even the admin bloke says he’s never known a set of circumstances like it. We’ve been had good and proper.
 

ZAKKY

Vital 1st Team Regular
#18
It's similar to the Liverpool and Utd situations of a few years ago.

The new buyer borrows the money to buy us (£24m, or whatever), thus creating a creditor in the name of the one loaning the money ........ IEC .....with Choi as Chairman !

It stinks.
So why have the club not got the remaining 9million of the borrowed amount and if Choi or who ever has the cash then they cant claim it back it is a massive fraud
 
#19
I'm somewhat concerned by the statement made by Krasner from Wigan today that discussions with lawyers around potential illegal activity will not take place for 2 weeks after the end of season completion is secured (understandable) and creditors are addressed (really !)
Given that the major creditor IEC is at least in part responsible for the administration and could well be complicit in any subsequent legal action surely this is fundamentally wrong ?
Again, no finance expert but if interest due to IEC are to be paid against funds agreed within that deal which the club has not received surely this should be halted until any legal implications are investigated ?
Call me cynical but the fact that these administrators were instructed by whoever actually owns the club and are also involved with the majority creditor creates a conflict of interest ?
It would be more reassuring if the board of WAFC had appointed administrators rather than the prick who has sold us down the river IMO - smells worse and worse this 😪
Administrators do have a legal responsibility
They do act independently of whoever appointed them
It sounds like the administrators suspect fraud, otherwise why say they will look into it.

Sadly, I am an idealist.
I have had dealings with administrators, they are only interested in maximising the assets of the company in administration and liquidising the assets.
 

TRUE BELIEVER

Vital 1st Team Regular
#20
Everyone needs to stop wondering about the 24million. The club have had it, according to the sale documents. It was used to pay off the money IEC have loaned /put in the club whilst in their control.

That money is gone, whether legally or not .