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Adam Pearson Consortium

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Grumpy Old Man said:
Any buyer with a grain of business sense would wait until August next year when the situation re SBC is resolved. While a sale now would be nice, I'd have to have doubts about the acumen of a group that actually did it.
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what is there to be resolved? worst case scenario the loan will be re financed no big deal.. maybe they are going to pay SBC what is owed..
 
sad-eyed prophet said:
We can't wait that long Grumpy. We need a deal now and SBC are going to have to be on board with it. Anything else merely has us falling deeper into the pit.
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Nowt to do with SBC. It's simply that, for a buyer, everything will be much clearer at that point. Either the debt will be paid off, or else refinanced at a much lower value, or the club will be available at a knockdown price from administrators. If I was a potential buyer, I'd be waiting.
 
leerik_canamole said:
Could it also have the potential to cost the buyer more though if the debt is almost cleared and we're back n the Championship? Surely Ellis would then want more money?
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No, because if they buy now, they assume the responsibility for the full £68m. If, say, it's brought down by the bond and incoming transfers and then rolled over into a new 5 year loan for around £30m, that means the buyers only have to worry about repaying £30m in 5 years time, rather than £68m in 12 months. And the difference in valuation is likely to be less than £40m in any event.
 
Grumpy Old Man said:
Nowt to do with SBC. It's simply that, for a buyer, everything will be much clearer at that point. Either the debt will be paid off, or else refinanced at a much lower value, or the club will be available at a knockdown price from administrators. If I was a potential buyer, I'd be waiting.
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Could they refinance it now as part of any takeover deal?
 
Gaz said:
Could they refinance it now as part of any takeover deal?
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They could, but £68m for a League 1 club is a hell of an ask, even with the property asset backing. If it can be managed down before expiry it will be much easier to deal with. It really boils down to upfront costs - they're likely to be much lower for a buyer who waits until next year.
 
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