A slight silver lining (1 Viewer)

CTID · Jun 15, 2013

italiahorse said:
Are we debt free? Have SISU financed the purchase (from themselves?) from a loan from somewhere which is a debt against the club.

Knowing SISU they bid £200M which they handed over to themselves and placed that debt against the club.

Am I getting too Cynical ?

Exactly what i was thinking mate. Are we actually debt free?

I had assumed we still had the majority of our debt with maybe a small chunk written off by the admin. But i keep reading these "debt-free" statements and im confused now.

Surely their bid wouldn't have included writing off money owed themselves?

SkyBlueSwiss · Jun 15, 2013

Of course we are not debt free. The only debt that may be settled is the outside debt to ACL.
The debt will now increase with the additional costs of administration, the purchase price, whatever it was, will be passed through the group companies to the football club just as all the other debt was, The continuing losses will be added to the debt, there will be continuing intercompany interest and management fees charged to the football club. there will be the costs of searching for a new ground as even if they do not go this ridiculous route, they have already incurred significant professional fees with a very upmarket and expensive estate agency. They will have the severe losses of playing outside of Coventry for a minimum of three years, and they will have the costs of building a new stadium - all of which will end up as debt in the books of the club, but as Fisher has already said, the club will not own the new stadium, so we will (if it is ever actually built) be paying rent to another SISU group company.

I could keep going, but why bother? So, to ask again; why on Earth do you think that we will now be debt free?

CTID · Jun 15, 2013

SkyBlueSwiss said:
Of course we are not debt free. The only debt that may be settled is the outside debt to ACL.
The debt will now increase with the additional costs of administration, the purchase price, whatever it was, will be passed through the group companies to the football club just as all the other debt was, The continuing losses will be added to the debt, there will be continuing intercompany interest and management fees charged to the football club. there will be the costs of searching for a new ground as even if they do not go this ridiculous route, they have already incurred significant professional fees with a very upmarket and expensive estate agency. They will have the severe losses of playing outside of Coventry for a minimum of three years, and they will have the costs of building a new stadium - all of which will end up as debt in the books of the club, but as Fisher has already said, the club will not own the new stadium, so we will (if it is ever actually built) be paying rent to another SISU group company.

I could keep going, but why bother? So, to ask again; why on Earth do you think that we will now be debt free?

pretty much what i had thought mate, i don't pretend to understand all the ins and outs of this situation but had a rough idea similar to what you say above. Was just the "debt free" statements confusing me.

Just another question, what would have happened to the debts had another party won the bid for Ltd? Would Ltd still owe the what, 75 million odd, to sisu companies?

Think i might just give up trying to understand all of this!

italiahorse · Jun 15, 2013

My thoughts on this (so don't put any money on it)

I guess if someone else had won, the debt to SISU would have reflected the bid.
If they bid 10M for the club then if the total debt is £50M then everybody would get 20p in the pound.
SISU would be sent on there way with £5M in there pocket.
If SISU agreed to this then the club would exit administration with £5M debt.
Whatever SISU bid (£50M?) this circulates back to them anyway but leaves £50M debt in the club.

SkyBlueUkeman · Jun 15, 2013

Well if that is the case then you've got to wonder why Sisu have done this? They must know that vacating the city will ruin them and us, and they must know that they aren't going to get the Ricoh, so whats next? It would have to be trying to sell the company?

SkyBlueUkeman · Jun 15, 2013

italiahorse said:
My thoughts on this (so don't put any money on it)

I guess if someone else had won, the debt to SISU would have reflected the bid.
If they bid 10M for the club then if the total debt is £50M then everybody would get 20p in the pound.
SISU would be sent on there way with £5M in there pocket.
If SISU agreed to this then the club would exit administration with £5M debt.
Whatever SISU bid (£50M?) this circulates back to them anyway but leaves £50M debt in the club.

Yeah. Im confused now. As clusterfucks go, this is an almighty one.

Glen · Jun 15, 2013

They wont sell its all shit no one will pay a high inflated price for nothing as thats what they will get

SkyBlueSwiss · Jun 15, 2013

I cannot of course know what the details are, but my guess would be that the Otium bid either agreed to write off a small portion of the intercompany debt (enough to be larger than the best of any of the other three bids), or they agreed to "pay" a certain penny-in-the-pound amount to their sister corporations within the group. What is almost certain is that, with the exception of potentially paying off the only outside debt to ACL, Otium's bid would not have injected a single penny of actual cash into the football club, and as a football club I consider that we are now significantly worse off financially than before Fisher and SISU started playing their games with the rent, setting up offshore companies etc.
We are now owned by a company that was about to be struck off with no assets and with directors that have were apparently dismissed from CCFC as incompetent, and whom I expect to be joined as an ex-CCFC director by Fisher, who has done his job but has so alienated the fans that I believe he is certain for the chop once he has finished doing the dirty end of the business.

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