The Administration Thread

[atherstoneram]

1 hour ago, MackworthRamIsGod said:

Really?

He was driving towards the stadium, red Range Rover at about half 2.

Most probably has nothing to do with the club however.

So long as he wasn't singing "Burn Derby Burn".

[kevinhectoring]

One thing about the last 2 years that’s worth mentioning is: we had at least 5 potential bidders. But we apparently had only one who was a genuinely enthusiastic buyer who was capable of closing the deal. And he didn’t get it !!

[Foreveram]

2 minutes ago, kevinhectoring said:

One thing about the last 2 years that’s worth mentioning is: we had at least 5 potential bidders. But we apparently had only one who was a genuinely enthusiastic buyer who was capable of closing the deal. And he didn’t get it !!

[jono]

5 hours ago, kevinhectoring said:

One thing about the last 2 years that’s worth mentioning is: we had at least 5 potential bidders. But we apparently had only one who was a genuinely enthusiastic buyer who was capable of closing the deal. And he didn’t get it !!

[Hanny]

Hello all! I just responded to someone in another thread, but wanted to post it here, as it’s admin focused.

Seems folks are debating the meaning of “the debts are cleared”.
 

I may be very wrong on my thinking here. but it was my understanding that the amount paid (25p/pound). Was the agreed amount by creditors as well as EFL/etc. Meaning that if someone (Now Clowes) agrees to pay the 25p up front, the rest of the debt will be wiped. 

Surely that’s the whole purpose of having an administration process. 
 

So, if My thinking is correct on this- yes, the debts will now be all cleared after the creditors/etc agreed to be paid 25p/pound, as opposed to being paid zero pounds for watching the team go bankrupt. 
 

Is this not correct? Am I completely ignorant of insolvency law in the UK (this is likely?)? Or are you lot just arguing semantics? ?

[Crewton]

1 minute ago, Hanny said:

Hello all! I just responded to someone in another thread, but wanted to post it here, as it’s admin focused.

Seems folks are debating the meaning of “the debts are cleared”.
 

I may be very wrong on my thinking here. but it was my understanding that the amount paid (25p/pound). Was the agreed amount by creditors as well as EFL/etc. Meaning that if someone (Now Clowes) agrees to pay the 25p up front, the rest of the debt will be wiped. 

Surely that’s the whole purpose of having an administration process. 
 

So, if My thinking is correct on this- yes, the debts will now be all cleared after the creditors/etc agreed to be paid 25p/pound, as opposed to being paid zero pounds for watching the team go bankrupt. 
 

Is this not correct? Am I completely ignorant of insolvency law in the UK (this is likely?)? Or are you lot just arguing semantics? ?

I believe this is correct - as I said on the other thread, the only exceptions would be if DC has agreed a payment plan with HMRC and/or MSD for what is owed to them (to whatever % of the debt he's agreed to pay).

[Hanny]

6 minutes ago, Crewton said:

I believe this is correct - as I said on the other thread, the only exceptions would be if DC has agreed a payment plan with HMRC and/or MSD for what is owed to them (to whatever % of the debt he's agreed to pay).

That makes sense to me?. I suppose someone better informed then I (any UK based insolvency lawyers in the house?) could confirm ?‍♂️

Edited July 6, 2022 by Hanny

[Elwood P Dowd]

I think it’s probably more accurate to say

“There is an agreed plan in place, with the creditors, for the settlement of the debts”

I would imagine that the MSD charge on the ground, secured by Mel, would have been fully discharged 

Edited July 6, 2022 by Elwood P Dowd

[ram59]

59 minutes ago, Elwood P Dowd said:

I think it’s probably more accurate to say

“There is an agreed plan in place, with the creditors, for the settlement of the debts”

But surely even if the creditors accepted a payment plan, anything less than 25% immediately, it would draw a 15 point deduction from the EFL, because it wouldn't meet their requirements? If a plan was accepted, surely it would mean that we had to pay 35%, in order to satisfy the EFL?

[Elwood P Dowd]

12 minutes ago, ram59 said:

But surely even if the creditors accepted a payment plan, anything less than 25% immediately, it would draw a 15 point deduction from the EFL, because it wouldn't meet their requirements? If a plan was accepted, surely it would mean that we had to pay 35%, in order to satisfy the EFL?

We know no details of the payment plan however, the payment plan must have satisfied the EFLs payment criteria as the EFL would have docked us 15 points if it hadn’t.

Edited July 6, 2022 by Elwood P Dowd

[Carnero]

6 minutes ago, Elwood P Dowd said:

We know no details of the payment plan however, the payment plan must have satisfied the EFLs payment criteria as the EFL would have docked us 15 points if it hadn’t.

Knowing them we'll get deducted the -15 in 3 seasons time ?

[Elwood P Dowd]

2 minutes ago, Carnero said:

Knowing them we'll get deducted the -15 in 3 seasons time ?

In 3 seasons time we will be in the Premiership and the EFL can ******** ???????

[Yani P]

On 05/07/2022 at 05:50, RadioactiveWaste said:

 

and I doubt Ashley lost any sleep or shed any tear.

Nor did we when he didn't get our club..

[Van der MoodHoover]

8 minutes ago, Carnero said:

Knowing them we'll get deducted the -15 in 3 seasons time ?

In 3 seasons time I reckon the EFL will not exist in its current form and will have been replaced ?

[ilkleyram]

1 hour ago, Van der MoodHoover said:

In 3 seasons time I reckon the EFL will not exist in its current form and will have been replaced ?

Depends really what you mean by its 'current form', but my bet is that it will still exist but maybe with some of its responsibilities taken over - owners/directors test, for example, or the disciplinary process.  As likely would be that there could be an additional body to the EFL, (reporting to Government) that inspects the EFL and what it does and is a regulating body to which clubs (or the EFL) could appeal in the event of a dispute.

In the end the EFL is a membership body and as such the Government (of whatever colour) will struggle to replace it if most members want it to stay, and probably won't want to or want the hassle - there are some EFL members don't forget who feel that we have been lightly treated and feel that the EFL haven't gone far enough, especially now we're signing players.

I don't think that there'll be another (replacement or additional to the EFL) body appointed to administrate the game - set the fixtures/administer the referees/decide who goes up/comes down/is admitted to the league/negotiates TV deals/disciplines players/doles out prizes etc etc because why would the Government want to do that?  And in any case the PL would be lobbying hard against that possibility because that would remove most of their power (and income) - if you replace the EFL why not the PL too?

So, you're left with the EFL still in place but some overarching regulator with influence and power but a limited arc and, probably, the PL largely untouched.  And if Tracey Crouch becomes the only minister left standing then nothing will happen because she'll be too busy running the country

[Crewton]

I think this thread should stand as a tribute to all those "experts", from other clubs in particular, who insisted that Derby would be liquidated because HMRC would want to make an example of us. I never believed that, because all HMRC ever wanted was to be in a position where they couldn't be disregarded. However, I always believed that liquidation was entirely possible if an acceptable offer wasn't forthcoming, but thankfully it was. 

The bitter tears of our enemies will sustain me for years. ? 

[Flying Fokker]

13 hours ago, Hanny said:

Hello all! I just responded to someone in another thread, but wanted to post it here, as it’s admin focused.

Seems folks are debating the meaning of “the debts are cleared”.
 

I may be very wrong on my thinking here. but it was my understanding that the amount paid (25p/pound). Was the agreed amount by creditors as well as EFL/etc. Meaning that if someone (Now Clowes) agrees to pay the 25p up front, the rest of the debt will be wiped. 

Surely that’s the whole purpose of having an administration process. 
 

So, if My thinking is correct on this- yes, the debts will now be all cleared after the creditors/etc agreed to be paid 25p/pound, as opposed to being paid zero pounds for watching the team go bankrupt. 
 

Is this not correct? Am I completely ignorant of insolvency law in the UK (this is likely?)? Or are you lot just arguing semantics? ?

I think the debt is there albeit a damn sight less than when in admin.  Clowes will carry the cost of the business as serviceable debt and could well charge high (ish) interest on the money the company owes him.  Nothing unusual in that unless he decides to call the debt in or sells the club of course.

Edited July 7, 2022 by Flying Fokker

[Flying Fokker]

17 minutes ago, Crewton said:

I think this thread should stand as a tribute to all those "experts", from other clubs in particular, who insisted that Derby would be liquidated because HMRC would want to make an example of us. I never believed that, because all HMRC ever wanted was to be in a position where they couldn't be disregarded. However, I always believed that liquidation was entirely possible if an acceptable offer wasn't forthcoming, but thankfully it was. 

The bitter tears of our enemies will sustain me for years. ? 

I felt Derby would survive.  Too big a club.  The Admin blew opportunities.  Not many clubs in admin have so many bidders as well. 

[Flying Fokker]

11 hours ago, Van der MoodHoover said:

In 3 seasons time I reckon the EFL will not exist in its current form and will have been replaced ?

2 tier premiership?  There are many clubs in League One that could put up a good case for being in it.

[SirBrian]

HMRC does not wish for clubs to be liquidated, no club no tax over the following years along with job loses throughout the city which again will be loss of taxes over the years, if club paid HMRC 25% then the outstanding 75% would be collected from the club over the years and beyond, no club no taxes.

Liquidation will always be a last resort for any business, only when all avenues have closed will this happen, HMRC will be looking for future taxes.