Administration scenario (1 Viewer)

[hitmanhearns]

If SISU chooses to put us in administration could they resort to theese tactics as quoted in this times article? Is this the plan of theirs after pocketing the supposed Dann money and Gunnarsson fee?

"But, according to rivals, appearances are deceptive. Seppala is a force to be reckoned with. “She has balls of steel,” said one.

"Seppala has a reputation for playing hardball in the distressed-debt market — demanding that companies and administrators “stand and deliver” what she believes her investors are due".

"Sisu is one of a number of hedge funds that, having taken over company debts, are refusing to play by the traditional rules. They are making waves — resorting to the courts and even threatening to bid for companies — to get what they believe is rightly theirs."

"Administrators to bankrupt companies accuse the hedge funds of blackmail — holding out and refusing to agree to a deal until they secure a larger payout for themselves — at the expense of other creditors. With the rows often ending in costly long-running legal battles, many administrators, they admit, quietly concede to the demands. “It is like dealing with sharks,” said one."

Maybe SISU are not as cornered as one might think..it seems to me they´re pretty used to this kinda situation, it could be a looong road to get rid of ém and I´m not sure Hoffmans investors are ready to step into this kind of legal quagmire that may lay ahead.

Any accountants or economists out there?

 

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[Il Pirata]

Finnish women have balls? No wonder, they have been fighting Russian men for years.

 

[Godiva]

Please understand that SISU themselves have not invested i our club. They are operating funds with money from other rich people. Those funds have been setup to own the club.
If the club needs more money SISU will have to ask the investors in the funds if they are prepared to caugh up. And they will tell them if they don't the club will have to be put into administration and they face losing their money.

I think this has happened a few times already, but it probably gets harder every time, so they really need new investors to come in - not to buy the club, but to supplement the current investments.

 

[PhilWasn'tBabb]

A classic case of good money after bad..

 

[Godiva]

A classic case of good money after bad..

So true.

The really sad thing is all the protest and SISU out campaigning won't actually hurt the real investors - they are faceless and unknown in all this. SISU may be hurt on their pride, but they will not really lose other than that.

But let's say we had a full blown protest with TV coverage and all that, what will happen?
The real investors will probably say no thanks to put in any more.
SISU will fail to attract any new investors to keep the company going.
The board will have to hold a fire sale on Clingan, Juke and Turner to get cash to pay the bills.
The protests will continue even louder.
SISU will have to pull out and may opt to liquidate the club if they don't get an offer that exceeds liquidation.

And should Hoffman manage to make a deal to take over the club before administration/liquidation then what?
Then we are sat in the exact same situation with faceless unknown investors who rely on a board to run a tight ship. I can't see this scenario is any better than the current, and if the fans/SISU/Hoffaman war drags on before a take over, we might end up with minus 10 points, no Juke/Clingan/Turner and no real prospect of getting suitable replacements as we would still need to comply with the fair finance play regulations.