Boro debts written off

[FindernRam]

See today a mere £107m has been written off by our favourite villain converting debt to shares. 

All legal but sounds really dodgy.

[richinspain]

3 minutes ago, FindernRam said:

See today a mere £107m has been written off by our favourite villain converting debt to shares. 

All legal but sounds really dodgy.

Sorry, but despite how much I dislike the man for what he did to our club, you have to admire someone writing off £107m of their money for a football club. I don't know how much he is worth, or how it compares with MM, but if MM had done the same we wouldn't be where we are now.

[Crewton]

It won't make any difference to their FFP position (as far as I'm aware) but it makes them much more financially secure.

Still, don't ask about Freeports or he'll get all of a tizzy.

[Foreveram]

1 hour ago, Crewton said:

It won't make any difference to their FFP position (as far as I'm aware) but it makes them much more financially secure.

Still, don't ask about Freeports or he'll get all of a tizzy.

That’s the problem though, not enough questions asked about Freeports.😉

[RadioactiveWaste]

28 minutes ago, Foreveram said:

That’s the problem though, not enough questions asked about Freeports.😉

Cat-nip for rich barstools "we're going to create a deregulated do whatever you want area that also includes port facilities. We hope positive results for local communities and employment happen....."

[MaltRam]

He's still a Bamford.

[G STAR RAM]

And this is in addition to Boros tax losses that he sold to another one of his companies, something that led to a change in FFP rules, although not a retrospective one as in another case...

[Day]

Isn't this fairly common practice?

Leicester did the same recently as well as Stoke.

[Steve Buckley’s Dog]

Did Rick Parry and the EFL pay them off? Or did Mel have to?

Never forgive or forget the parasite clubs. 

[littleover ram]

If they’d been able to sign Waghorn ahead of us in 2018, they’d be defending their Club World Cup title this evening 

[rammieib]

If they convert debt to shares, I assume this makes no accounting difference on the Profit and Loss accounts for each year?

I guess it makes their cash position better as they don't owe any debt, assuming it was wiped clean?

[Van der MoodHoover]

15 hours ago, rammieib said:

If they convert debt to shares, I assume this makes no accounting difference on the Profit and Loss accounts for each year?

I guess it makes their cash position better as they don't owe any debt, assuming it was wiped clean?

More than that, equity holders can't put a club into admin.....they don't have debts owing that they can call in.

[G STAR RAM]

On 23/12/2023 at 14:50, Van der MoodHoover said:

More than that, equity holders can't put a club into admin.....they don't have debts owing that they can call in.

Neither did MM but he put is into administration. 

[Van der MoodHoover]

17 minutes ago, G STAR RAM said:

Neither did MM but he put is into administration. 

That's because not all his money was injected as equity.

Owners would rather loan money as a directors loan rather than inject equity, because it's legally easier to get your money back out (you just ask for the loan to be repaid, with equity you can only get dividends or try to sell it to someone else).

[G STAR RAM]

15 minutes ago, Van der MoodHoover said:

That's because not all his money was injected as equity.

Owners would rather loan money as a directors loan rather than inject equity, because it's legally easier to get your money back out (you just ask for the loan to be repaid, with equity you can only get dividends or try to sell it to someone else).

All of the money put into DCFC was equity via his holding company.

There were no, or minimal, directors loans in the football club.

[Van der MoodHoover]

3 hours ago, G STAR RAM said:

All of the money put into DCFC was equity via his holding company.

There were no, or minimal, directors loans in the football club.

As a director, (not owner) he can legally put into admin to protect the entity from being wound up by creditors.

So presumably there were other creditors and no more money.

[G STAR RAM]

20 minutes ago, Van der MoodHoover said:

As a director, (not owner) he can legally put into admin to protect the entity from being wound up by creditors.

So presumably there were other creditors and no more money.

That wasn't really what was being discussed, you said

'That's because not all his money was injected as equity.'

From what I have seen in the accounts/administrators report I'd say its a very misleading statement, if not totally incorrect.

[therealhantsram]

14 minutes ago, G STAR RAM said:

That wasn't really what was being discussed, you said

'That's because not all his money was injected as equity.'

From what I have seen in the accounts/administrators report I'd say its a very misleading statement, if not totally incorrect.

Not sure I agree with you. My recollection is that he stopped putting in money as equity around the Rowett era, and switched to loans. Whether they were personal loans or through a holding company, I don't know. But also not sure it matters. 

[G STAR RAM]

1 hour ago, therealhantsram said:

Not sure I agree with you. My recollection is that he stopped putting in money as equity around the Rowett era, and switched to loans. Whether they were personal loans or through a holding company, I don't know. But also not sure it matters. 

Rowett left Derby in May 2018, the last accounts filed were up to 30 June 2018 and did not have any directors or inter company loans so not sure where you would have got your information from?

Also the Administrators Statement of Affairs does not seem to note any significant amounts owed to MM or his companies.

[Van der MoodHoover]

1 hour ago, G STAR RAM said:

That wasn't really what was being discussed, you said

'That's because not all his money was injected as equity.'

From what I have seen in the accounts/administrators report I'd say its a very misleading statement, if not totally incorrect.

Bully for you.