Preferred Bidder can be named today
- Thread starter FrancosLoveChild
- Start date
E
exiled tic
Guest
It is in today's Sun Zeb,not sure if you can read it online,Says the bid is backed by American money,
daleks.at.the.monaco
Vital 1st Team Regular
FFS read the other posts.
Colin Robinson
king_dezeeuw06
Vital Champions League
That's interesting as if admin has to sell for 25p in the pounds that would mean club is only worth 20.4m. Considering Yeung paid 40m including repaying the loan to IEC that would indicate we aren't repaying the loan - which has been a hot topic in other threads.
If the club is only 5m then it's even more concerning the other parties were so reluctant to get the deal done until after assets were sold off.
ZAKKY
Vital Football Hero
Mighty Bongsmon
Vital Squad Member
It’s not like a normal sale where you pay what a business is worth. The administrators job is to get the best deal for the creditors and that is all that needs paying (from what I can gather) to own all the 5 parts of what the holding company owns.
I read that the footballing creditors who have to be settled in full was £6mill and the original preferred bidder was offering £1.5mill to non footballing creditors which was a quarter of what was owed (25p in the £)
But whilst they’ll get a football club on the cheap what they’ll also get is a football club whose current outgoings strip its income to the tune of £1mill a month. That’s one of the reasons why all the non footballing staff have been laid off. That’s the reason why Cook was allowed to leave for nothing and it’s those huge commitments that are one of the reasons causing the delay with the prospective buyers - they want to make sure that when they take over they’re not gonna be lumbered with championship costs with league 1 income
That’s as I understand it anyway
walgarthjohn
Vital 1st Team Regular
Depends on what background they come from. This time we need a buyer that is interested in football one who shows there face at matches. Not like the idiots some on here thought we’re good. ..
If not in couple of years be back to square one. .
if
king_dezeeuw06
Vital Champions League
I was under the impression the 6m was the full cost of external creditors and had to be paid in full to avoid a points deduction but the 25p in the pound was to Yeung for the value of the clubs assets / or the much argued debt to him in a leveraged buy out and the IEC loan repayment.
Nixon has indicated the price of the club itself will be as low as needed which suggests your interpretation was more accurate than mine.
So with that in mind we apparently owe Barnsley 1.5m for Moore does that mean we can get away with paying 25p in the pound and giving them 375k without a points deduction? I didn't think that was the case.
moonay
Vital Football Legend
Lots of folk get things wrong on here John. Sometimes about the owners, sometimes about the managers, sometimes about the players.
No point calling one lot out for special treatment, labelling them as "idiots".
Mighty Bongsmon
Vital Squad Member
No
No KDZ - football creditors have to be paid in full
One of the problems with that is that whereas we may have been paying for Moore over 2-3 years they now have to be paid the full amount of what is still owed. Same with any other transfer fees that were being paid in installments
As I understand it, the 25p in the £1 to non football creditors is the minimum that has to be paid in order for the club to avoid a further 15pt penalty next season
At present Yeung won't be getting a penny of any purchase price unless he can prove that the £24mill "loan" makes him a secured creditor against the club. As far as I'm aware if a business goes in to administration the owner of it gets nothing from any sale unless they're creditors
No KDZ - football creditors have to be paid in full
One of the problems with that is that whereas we may have been paying for Moore over 2-3 years they now have to be paid the full amount of what is still owed. Same with any other transfer fees that were being paid in installments
As I understand it, the 25p in the £1 to non football creditors is the minimum that has to be paid in order for the club to avoid a further 15pt penalty next season
At present Yeung won't be getting a penny of any purchase price unless he can prove that the £24mill "loan" makes him a secured creditor against the club. As far as I'm aware if a business goes in to administration the owner of it gets nothing from any sale unless they're creditors
hindleymonwafc
Vital Champions League
Lots of folk get things wrong on here John. Sometimes about the owners, sometimes about the managers, sometimes about the players.
No point calling one lot out for special treatment, labelling them as "idiots".
I think he was calling the Chinese owners idiots mate.
moonay
Vital Football Legend
I can see what you mean. Not sure. Maybe John'll confirm.
king_dezeeuw06
Vital Champions League
That makes sense. Didn't realise that administration effectively meant all future installments of transfers became due imminently.
hindleymonwafc
Vital Champions League
I read it as he wanted owners that actually attended matches not like the idiots that some on here thought were good.
Might be wrong .....
Mighty Bongsmon
Vital Squad Member
I'm only going from things I've read and am no expert
It's not so much that the outstanding transfer fees become effectively due imminently its just that buying the club pays off your creditors and all football ones get the full amount they're owed and not 25p in the £ or whatever amount the others are offered (which the creditors can reject as I understand it)
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moonay
Vital Football Legend
I read it with the apostrophe......take it out, and you're probably right.......though "idiots" hardly seems a fitting term for them.
hindleymonwafc
Vital Champions League
How true....we , as in us as a collective, appear to be the idiots...or at least those sitting round the table do.
TRUE BELIEVER
Vital Football Hero
I believe the figure of 6 million that is being quoted is the total amount of Football Creditors ie. Players wages, transfer fees, managers and coaches wages etc. and these must be paid in full to avoid further punishment.
All other creditors are paid from the money raised by the admins after payment of the secured creditors and is usually a percentage of what they are owed due to the fact that the business will be sold at a lesser value than the total debt owed. The figure of 25p in the pound is what the EFL say must be paid to creditors to avoid a further points deduction penalty. They could however receive nothing, as has happened to me in the past.
The disputed loan figure is the problem. If it exists it will be in the form of a Directors loan and in the case of a normal liquidation is first in line for repayment as a secured creditor, how that applies to football could be slightly different. The dispute as I see it is that there appears to be no record of the loan having been accepted by the board and charged against the assets of the club. Pies 'r' Us has shown evidence of a loan agreement having been agreed and signed by Choi/Yeung but there seems to be no evidence that this was ever presented to the Board of Directors for their approval and no evidence of it being declared to the EFL that I have seen.
Pies may have a different take on this and has done much more research on it than I have and so I would defer to his opinion.
