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this if we go bust rubbish

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Slugster said:
found a way around it not cheated, and got a fresh start with new owners debt free
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They weren't debt free. Leicester still paid was it 60p in the pound back to their main creditors. A lot of local creditors lost what to them was a lot of money though.

So we'd still have to pay back to SBC and Short given they're our main creditors, even at reduced rates. Why would Short let that happen ?

It doesn't make any sense given he loses out in all ways, possibly losing control of the club for absolutely no gain.
 
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Perryqhill said:
They weren't debt free. Leicester still paid was it 60p in the pound back to their main creditors. A lot of local creditors lost what to them was a lot of money though.

So we'd still have to pay back to SBC and Short given they're our main creditors, even at reduced rates. Why would Short let that happen ?

It doesn't make any sense given he loses out in all ways, possibly losing control of the club for absolutely no gain.
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I beg to differ
 
Lots of misinformation going on here.

Administration happens on one of two ways. First, the directors conclude the company is insolvent and cannot meet its debts as they fall due. Secondly, a secured creditor concludes that there is a serious risk of default. In our case that means Short or SBC are parties who could do it.

You come out of administration in one of four ways, two of which are slight variants.

1. The administrator can trade his way out of trouble, the creditors are paid, and the company is handed back to the owners. If you think this ever happens, you probably believe in the Tooth Fairy.
2. The creditors agree to a creditors voluntary arrangement (CVA). This usually means agreeing to instalment payments, or exchanging some debt for shares in the company.
3. The trade and assets are sold on to a new company (newco). This continues the business of the old company under new owners. The old company is liquidated and the proceeds given to creditors in accordance to legal precedence.
4. The company can't be sold or rescued, is liquidated, and the business ceases to exist.

Most football clubs have exited via route 3. The chances of 1 are non-existent, and of 2 vanishingly small.

Short loses control of the club in options 3 and 4. As an unsecured creditor, he almost certainly loses everything. The best he could expect is about 5p in the pound on the £69m debt. The £101m share capital is gone.
 
Grumpy Old Man said:
Lots of misinformation going on here.

Administration happens on one of two ways. First, the directors conclude the company is insolvent and cannot meet its debts as they fall due. Secondly, a secured creditor concludes that there is a serious risk of default. In our case that means Short or SBC are parties who could do it.

You come out of administration in one of four ways, two of which are slight variants.

1. The administrator can trade his way out of trouble, the creditors are paid, and the company is handed back to the owners. If you think this ever happens, you probably believe in the Tooth Fairy.
2. The creditors agree to a creditors voluntary arrangement (CVA). This usually means agreeing to instalment payments, or exchanging some debt for shares in the company.
3. The trade and assets are sold on to a new company (newco). This continues the business of the old company under new owners. The old company is liquidated and the proceeds given to creditors in accordance to legal precedence.
4. The company can't be sold or rescued, is liquidated, and the business ceases to exist.

Most football clubs have exited via route 3. The chances of 1 are non-existent, and of 2 vanishingly small.

Short loses control of the club in options 3 and 4. As an unsecured creditor, he almost certainly loses everything. The best he could expect is about 5p in the pound on the £69m debt. The £101m share capital is gone.
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Which begs the question: why the halfhearted attempt to get back to the premier league?
 
jonny gently said:
Which begs the question: why the halfhearted attempt to get back to the premier league?
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Can't afford to speculate and fail, basically. We pretty much haven't got two pennies to rub together; if we'd spent £10m or so and not got promoted, we're 12 months on and in an even direr position. Our problem is that we're only now doing what should probably have been done seven or eight years ago, in terms of controlling costs. We've had season after season of buying without thinking about how to pay for it. We're just like the guy with a dozen maxed out credit cards who finally realises that he's in deep shit.
 
Perryqhill said:
It won't happen. Short has got Bain in and cut costs and is likely using funds from transfers to pay the and loan and hence protect (to some degree) the club and his investment. Get those debts down and the club becomes more saleable again.
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So if we get relegated to League1 what happens with all these big contracts?

Cattermole
Oviedo
Rodwell
Kone
N'Dong
Lens
Khazri
Borini
Djilibodgie

There's prob more.
 
Grumpy Old Man said:
Can't afford to speculate and fail, basically. We pretty much haven't got two pennies to rub together; if we'd spent £10m or so and not got promoted, we're 12 months on and in an even direr position. Our problem is that we're only now doing what should probably have been done seven or eight years ago, in terms of controlling costs. We've had season after season of buying without thinking about how to pay for it. We're just like the guy with a dozen maxed out credit cards who finally realises that he's in deep shit.
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Which probably means it will have to get a whole lot worse before Bain even contemplates sacking Grayson. I'm presuming that Bain has carte blanche ...
 
jonny gently said:
Which probably means it will have to get a whole lot worse before Bain even contemplates sacking Grayson. I'm presuming that Bain has carte blanche ...
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Bain's remit is to keep the club in business. That means matching costs to revenues and using sales money to pay creditors (previous transfers and the loans). That's harder to do in lower divisions, but it still has to be done. I can't deny that in Bain's position it's unlikely I'd be doing anything different.
 
Grumpy Old Man said:
Bain's remit is to keep the club in business. That means matching costs to revenues and using sales money to pay creditors (previous transfers and the loans). That's harder to do in lower divisions, but it still has to be done. I can't deny that in Bain's position it's unlikely I'd be doing anything different.
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So you don't think Bain will sack Grayson?
 
If SAFC is going to sack Grayson and bring in a new guy, what player will they sell to pay for the new contract.

There is apparently no money available that isn’t marked for current expenses or debt repayment.

So if SAFC is to take on another new contract for a new manager then who can be sold to raise funds to pay for it?
 
Grumpy Old Man said:
Bain's remit is to keep the club in business. That means matching costs to revenues and using sales money to pay creditors (previous transfers and the loans). That's harder to do in lower divisions, but it still has to be done. I can't deny that in Bain's position it's unlikely I'd be doing anything different.
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been trying to get this through to people for ages now, it was the sole reason bain was brought in and he was never expected to 'revitalise' the team or the club...as much as we hate the job he is doing, he is doing well at it.
 
Slugster said:
Seen loads of people saying if we go into administration that the club won't exist anymore,is there an example of a league club that this has happened too,because I'm under the impression all debts are squashed and any new investor gets to buy the club(very cheap) with a clean slate and no debts, may be wrong though
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Loads of rubbish on the pitch today as well. Shocking
 
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