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The Administration Thread


Boycie

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15 minutes ago, StaffsRam said:

 

As I said earlier, the only potential issue with the Binnie bid is if MSD aren’t game for it. 

 

Q will have told bidders on what basis they should bid and it would be odd if the Binnies had at this stage put in a non compliant bid. MSD would obviously have signed off on the bid requirements. I’d thought the Binnie bid might involve

£28 m for the shares in the club, academy etc 

£[5m] non refundable cash deposit for ongoing working capital 

£20 m (to be paid to Gellaw 202 for the stadium). OR £20m to be paid to MM (for the shares in 202)

I’d think the £20m would then go to pay down MSD. 
 

I’d expect q will now be soliciting binding final offers from the other bidders before proceeding with the Binnies 

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7 minutes ago, kevinhectoring said:

Aha ! The Courts are concerned with insolvency law not the EFl rules   

Haha of course. In reality I doubt that would be an issue, it won’t be what they’re being asked to rule on. Is there any validity to the claims? Are the damages sought fair? Thus far the Binnies haven’t agreed to any amounts, just an acceptance of the potential unknown future liabilities.

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23 minutes ago, kevinhectoring said:

Q will have told bidders on what basis they should bid and it would be odd if the Binnies had at this stage put in a non compliant bid. MSD would obviously have signed off on the bid requirements. I’d thought the Binnie bid might involve

£28 m for the shares in the club, academy etc 

£[5m] non refundable cash deposit for ongoing working capital 

£20 m (to be paid to Gellaw 202 for the stadium). OR £20m to be paid to MM (for the shares in 202)

I’d think the £20m would then go to pay down MSD. 
 

I’d expect q will now be soliciting binding final offers from the other bidders before proceeding with the Binnies 

I don’t think the £28m has anything to do with the stadium at all. I think the intent will be to let the MSD loans run, and I suspect MSD will be fine with that as they’re on a good rate of interest with guaranteed collateral.

No idea if the £28m covers any monies for operating costs or if that’s a separate amount. Will be nice to get a breakdown of the bid early next week so that we can know for sure. The ball is absolutely in Appleby/Ashley’s court now, I can’t see Q letting it drag on too far into the week before having to nominate a PB. 

Edited by StaffsRam
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2 minutes ago, StaffsRam said:

I don’t think the £28m has anything to do with the stadium at all. I think the intent will be to let the MSD loans run, and I suspect MSD will be fine with that as they’re on a good rate of interest with guaranteed collateral.

No idea if the £28m covers any monies for operating costs if that’s a separate amount. Will be nice to get a breakdown of the bid early next week so that we can know for sure. The ball is absolutely in Appleby/Ashley’s court now, I can’t see Q letting it drag on too far into the week before having to nominate a PB. 

I don’t think the Binnies will pay Dell’s interest rates but who knows. Perhaps Carlisle Capital will refinance the MSD loans. 

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48 minutes ago, kevinhectoring said:

Seems there must be a danger that a court would ask: you are planning to pay the WM claims in full (even though you don’t think you’ll lose). But you are planning to pay existing unsecureds just 25p in the pound? How is that fair as between the classes ?

As the claims are just that claims with no value they can’t be counted in the process.

 

the football league stave is that they cannot be ignored - the new bidders have said they will accept they are there and deal with them after leaving admin, meaning we will have funds to pay what we need to pay once decided.

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4 minutes ago, davenportram said:

As the claims are just that claims with no value they can’t be counted in the process.

 

the football league stave is that they cannot be ignored - the new bidders have said they will accept they are there and deal with them after leaving admin, meaning we will have funds to pay what we need to pay once decided.

Contingent claims can’t be ignored in a restructuring    I’m just wondering whether unsecured creditors might say - it’s unfair, if you give the contingent claimants a better deal than us. HMRC for example could say that. I think this is what @PistoldPeteis suggesting?

Edited by kevinhectoring
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40 minutes ago, kevinhectoring said:

Contingent claims can’t be ignored in a restructuring    I’m just wondering whether unsecured creditors might say - it’s unfair, if you give the contingent claimants a better deal than us. HMRC for example could say that. I think this is what @PistoldPeteis suggesting?

At the minute thiught there is no value to it as the arbitration process hasn’t started so the creditors get more if we ignore them for coming out of administration and deal with them after coming out of administration

Edited by davenportram
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11 hours ago, PistoldPete said:

The Percy article seems to confirm my fears that the Binnie bid is not as good as the other bids.

They can't come in and deduct monies from an acceptable purchase price, just because they are offering to cover Boro and Wycombe claims. So effectively the other genuine creditors would lose out because of  the Boro and Wycombe  claims. That can't happen.   

 

 

But it is the best bid if they are prepared to take on Boro and WW.

If the takeover cannot proceed without these being addressed then any other bids are not worth the paper they are written on.

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8 hours ago, davenportram said:

At the minute thiught there is no value to it as the arbitration process hasn’t started so the creditors get more if we ignore them for coming out of administration and deal with them after coming out of administration

Yes. So if the Binnies accept the risk on the two claims, and if bizarrely Gibbo gets awarded some damages the effect is:

- unsecureds take a haircut

- Gibbo gets 100 p in the pound  

That satisfies the EFL rules but seems unfair on the unsecureds. It’s what happened in the Wolves case and there may be a way of structuring the payment to Gibbo to avoid the problem. But I hope Q have thought it through 

 

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9 minutes ago, kevinhectoring said:

Yes. So if the Binnies accept the risk on the two claims, and if bizarrely Gibbo gets awarded some damages the effect is:

- unsecureds take a haircut

- Gibbo gets 100 p in the pound  

That satisfies the EFL rules but seems unfair on the unsecureds. It’s what happened in the Wolves case and there may be a way of structuring the payment to Gibbo to avoid the problem. But I hope Q have thought it through 

 

None of that is right though - if I was one of the creditors I would consider legal action on agreeing to pay someone who doesn’t have an exact fixed charge against the club 

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4 minutes ago, Sparkle said:

None of that is right though - if I was one of the creditors I would consider legal action on agreeing to pay someone who doesn’t have an exact fixed charge against the club 

None of it’s right but we have to find some kind of solution don’t we ?

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