CCFC Accounts, £1.9M Loss (1 Viewer)

dongonzalos said:

I appreciate this is hypothetical, however if they were to accept a price of 24 million. If they had managed to do the wasps deal.
Then would someone have had to paid them 30 million and take in a 14 million loan in order to buy them out?

Click to expand...

Unless it was suddenly valued at a much higher value...

oldskyblue58 said:

If someone was looking to purchase the club they would now, I would suggest, look to purchase SBS&L 1000 ordinary shares of £1 and to clear out the ARVO preference shares and loans. The whole set up has been organised so that ARVO comes first and this has been the case for a number of years. You wouldn't purchase just Otium because that would leave £50m of preference shares with rights to accumulating dividend/distributions in someone elses hands. Buy SBS&L and you effectively buy the rights to £50m of preference shares. To buy SBS&L you only need to buy the ordinary share capital. If it were for sale

Click to expand...

Is this massively different to when SISU took over themselves? At that point the club had debt to various people, Robinson etc, but that wasn't all paid off as part of the takeover. Would a takeover of CCFC in the same manner be possible. So for example the club is purchased for x from SISU on the condition that the likes of ARVO take a pre-determined amount to walk away?

Yes it is different

- this wont be a forced sale for starters
- SISU/ARVO will have a lot of control over when and therefore value
- The ARVO debt is secured on all the assets including the shares as such that helps set minimum value to ARVO. Unsecured debt has nothing backing it up
- unsecured creditors carry no right to income preference shares do so at least in theory carry a premium on disposal
- this could involve a reduction in share capital and that's not the same as writing down creditors or bank debt
- unlikely you would defer share consideration for say six years Ownership of shares passes on payment
- deferring purchase means rights to income continue to accrue
- They could discount values on loans and shares yes but so long as club is self sufficient then they can wait for best price not take just any offer
- You are probably not going to buy the club as such but the group for the reasons above
- ARVO are entitled to the first £14m, IF SBS&L not sold I assume they would seek some return also? the unsecured creditors in 2008 got what they were told - not much if anything
- the club is not in the same need for finance as in 2008 - so not the same pressure deflating value
- finances can be demonstrated to be improving unlike 2008

one final point - with the charges in place over assets and shares ARVO control this process not SISU. Who controls ARVO? is it Ms Seppala? Or are others also controlling ARVO? So as such I don't think ARVO are going to be told to accept anything

dongonzalos said:

I appreciate this is hypothetical, however if they were to accept a price of 24 million. If they had managed to do the wasps deal.
Then would someone have had to paid them 30 million and take in a 14 million loan in order to buy them out?

Click to expand...

no idea - sorry don but this is complicated enough without hypothetical what ifs

Get into play offs and add another £2M in revenue minimum from gate receipts of bumper home crowd and Wembley play off/Sky to money.

Blow this accounting years accounts sky high.

But if John Doe phoned them up SISU tomorrow and said here's £10m for the lot but I want it with no debt etc outstanding that is still possible?