SISU and the debt (1 Viewer)

[hitmanhearns]

I am by no means a qualified accountant but here it goes;

4 years ago sisu took over the club by becoming responsible for the debt that occurred under robinson & richardson-NO INVESTMENT was made by sisu they just took over the debt.


So how much has sisu lost all these years? whatever amount it is-that´s what they´ll demand of hoffman+ him taking over the original debt just as sisu did.

The annual losses for 4 yrs?

how much do you think they have lost?

and could the problem be that hoffman is not willing to take on the debt that sisu once did? the original 20m debt...

 

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[shmmeee]

Who says SISU took on £20m of debt? I may just be forgetful (wouldn't be the first time) but I don't remember this being said anywhere.

I thought the £30m or whatever was mostly built up from the fact that we've lost in the region of £7m a year for 4 years.

Large amounts of the debt was written off or negotiated IIRC.

Besides, SISU didn't "take it on" they paid for it, no different to the debt accumulated since.

 

[hitmanhearns]

well i dont remember either but i´m pretty sure that when sisu bought the excisting debt it was around 20m i never heard the words "debt free" from sisus or anyone elses mouth at that time. According to L Brody the reported 40m debt in june 2011 was predominantley sisus investment put in print as a shareholder loan instead of as investment;

"According to the tweets of Coventry City Director Leonard Brody, the debts of close to £40m owed by Coventry City FC (Holdings) Ltd relate to monies owed to the club's backers SISU. The Canadian Entrepreneur tweeted about the debts which he described as being blown out of all proportion saying: "Debt held to a bank or third party, is just an accounting decision by SISU to book investment as a shareholder loan. "This is NOT debt in the way you are thinking. It is just an accounting decision..it is predominantly SISU. "These are the same numbers that have always been there. The number you are seeing is mostly SISU's investment. "This is a mountain being made out of a mole hill. Truly."

that 40m of "investment" must surely include the original debt of 20m+ that they bought. No way have they covered losses of more than 20m in 4 yrs, especially when the annual loss was 3.3m in 2009. I think they´ve prob splashed out around 10-12m covering losses and that´s what hoffman has to cough up. The original 20-30m debt must be the incoming owners responsibility if any deal is to be struck I believe.

 

[Godiva]

It's explanied here: http://www.skybluestalk.co.uk/threads/11316-FAQ-2-Money-Talks

 

[hitmanhearns]

Wow great article!

well if hoffman has to bid for SBS&L to gain control, I cant see him bidding what they´re asking wich would be what ? 25m?
Unfortunately I dont think sisu will ever write off anything to accomodate a takeover and i guess any potential buyer would be asking that just as sisu once did .Remember SISU deal in debt and taking to the courts is part of their business strategy..

once again great info provided by osb and godiva.