SISU won't liquidate us (1 Viewer)

OyJimmy · Apr 26, 2012

For the simple reason that they would only get money from player sales and sales of retail stock. Next seasons ticket money has already been mortgaged so they won't even see a penny of that.

An administrator would sell the club as a going concern to an investor who would pay over money for players, retail stock, brand and league status, tv revenue, etc They may even take on some debt. In essence in administration we will generate more cash for Sisu than Liquidation.

Wrenstreetcarpark · Apr 26, 2012

OyJimmy said:
For the simple reason that they would only get money from player sales and sales of retail stock. Next seasons ticket money has already been mortgaged so they won't even see a penny of that.

An administrator would sell the club as a going concern to an investor who would pay over money for players, retail stock, brand and league status, tv revenue, etc They may even take on some debt. In essence in administration we will generate more cash for Sisu than Liquidation.

Okay, BUT who will pay the Administrator? Will the administrator have funds to keep the Club going until a purchaser is found and if so where are those funds going to come from?

lifelongcityfan · Apr 26, 2012

Hi. They could also walk away with season ticket sale proceeds- they will just refuse to pass them on. Bit like the rent - they wont pay

OyJimmy · Apr 26, 2012

They can't run off with the ticket sale money as I think you will find that the creditor is a secured creditor. If they tried that it would be fraud. As for paying the administrator that would cost less than the money they would make

Wrenstreetcarpark · Apr 26, 2012

OyJimmy said:
They can't run off with the ticket sale money as I think you will find that the creditor is a secured creditor. If they tried that it would be fraud. As for paying the administrator that would cost less than the money they would make

Sorry not with you here....so Sisu would put the Club into administration and pay the administrators fee? So that he can find a buyer and pay them pence in the pound? While they pay to keep the Club going?
Shurely Sisu could cut out the middleman, in your scenario, and just find a buyer...if there is one?
Or is there another "they"?

OyJimmy · Apr 27, 2012

Wrenstreetcarpark said:
Sorry not with you here....so Sisu would put the Club into administration and pay the administrators fee? So that he can find a buyer and pay them pence in the pound? While they pay to keep the Club going?
Shurely Sisu could cut out the middleman, in your scenario, and just find a buyer...if there is one?
Or is there another "they"?

Why would Sisu pay to keep the club going? As soon as we go into Admin funding from Sisu will stop. All debts will be frozen and the clubs administrator will only have to find cash for day to day bills like wages. So the administrator will cut day to day costs down to the bone and look for a buyer as soon as they can. The buyer will then take on a portion of the debt through a CVA for the next 5 years and the club will get a 10 point deduction.

Sisu will get cash for goodwill ( ie the continued existence of the club) and assets via the CVA. Rather than only the assets if they made the silly move to liquidate instead.

Wrenstreetcarpark · Apr 27, 2012

That assumes that there is money there. There have to be funds sufficient to pay the ongoing expenses AND the administrator. We know that the season ticket money has gone, so no income there. No more games until the new season, so no income there. No new strip on sale, so no income there (and anyway the gross retail sales for a year wouldn't even meet the PAYE for a month). All outgoings: no income unless someone puts the money in, with only the hope of a sale. If, as you say, Sisu would benefit from administration why put in extra money to pay and administrator? Why not just make the same cuts, find a buyer and agree a price. If we have been told the truth (big question here) the bulk of the money owed is to Sisu, so it is only with themselves that they have got to come to agreement on pence in the pound. Why pay an administrator to do this?

OyJimmy · Apr 27, 2012

Wrenstreetcarpark said:
That assumes that there is money there. There have to be funds sufficient to pay the ongoing expenses AND the administrator. We know that the season ticket money has gone, so no income there. No more games until the new season, so no income there. No new strip on sale, so no income there (and anyway the gross retail sales for a year wouldn't even meet the PAYE for a month). All outgoings: no income unless someone puts the money in, with only the hope of a sale. If, as you say, Sisu would benefit from administration why put in extra money to pay and administrator? Why not just make the same cuts, find a buyer and agree a price. If we have been told the truth (big question here) the bulk of the money owed is to Sisu, so it is only with themselves that they have got to come to agreement on pence in the pound. Why pay an administrator to do this?

It's illegal to knowingly run an insolvent company. If they did that we could well and truly finish Sisu.

Wrenstreetcarpark · Apr 27, 2012

And I suspect that they know that all too well and are on a knife edge. Maybe the threat that Mutton was talking about is exactly this. Sisu threatening liquidation.
Can you imagine it?
Seppala: "Give us what we want Cllr Mutton, hand over the stadium or we will put the Club into liquidation." Seems realistic to me.

They can decide at any moment that they will send no more money to Fisher and he will have no alternative. It wouldn't be him killing the Club, although he will have been pushed out in front, it will be Joy Seppala, if she chooses to.

dongonzalos · Apr 27, 2012

Lads read the "this deserves its own thread old sky blue post"

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