fernandopartridge
Well-Known Member
This is where the bondholders dropping the ball may be to their detriment
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This is where the bondholders dropping the ball may be to their detrimentFrom the prospectus -
Risks relating the head lease of the Arena granted to ACL2006
Under the terms of the head lease granted by Coventry City Council (“CCC”) to Arena Coventry (2006) Limited (“ACL2006”) in respect of the Arena (the “Head Lease”), CCC have reserved the right to forfeit the Head Lease if ACL2006 becomes insolvent.
Insolvency in this scenario means a situation where ACL2006 becomes unable to pay its debts, has a receiver/administrator/provisional liquidator appointed over its assets, has assets seized in order to pay debts of ACL2006 or has a winding-up order made against it.
The effect of forfeiture would be that the 250 year Head Lease would fall away and that ACL would then become the tenant of CCC at the Arena for the remaining 38 years of its existing lease.
However, the right of CCC to claim forfeiture of the Head Lease is not an automatic right. If CCC made a claim for such forfeiture, this could be contested by ACL2006, any third party that held security over ACL2006 and any subtenants of ACL2006 by making application to a court in England.
Further, if an administrator was to be appointed over the assets of ACL2006, then CCC would not be able to forfeit the Head Lease without the consent of the appointed administrator or with the leave of the courts.
Probably yeah but ACL is tooHowever, the right of CCC to claim forfeiture of the Head Lease is not an automatic right. If CCC made a claim for such forfeiture, this could be contested by ACL2006, any third party that held security over ACL2006 and any subtenants of ACL2006 by making application to a court in England.
Are CCFC a subtenant?
No idea. Couldn't even tell you where they are in the table. Why don't you ask those from here that visited their site well after we last played them last season?How’s Sunderland?
This is where the bondholders dropping the ball may be to their detriment
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And we know what our local media are like, say what you like about Gilbert but he does do some digging and report on itThe problem is that the bondholders don't have direct rights, everything goes through the trustee... who was originally appointed by Wasps and seems remarkably reluctant to take any action.
If SISU pulled this kind of crap, the local media would be all over it. Wasps, for reasons that are entirely opaque to me, seem to get away with it.
Fucking hell. I didn’t know that at all. My deepest wishes to you on that. Come on.As you well know my wife has cancer
"Wasps have said they are close to a deal", didn't need to read past the first line, they've been claiming any day now for months.Wasps on brink of deal to repay multimillion-pound debts | TheBusinessDesk.com
Bondholders are owed £35mwww.thebusinessdesk.com
Article published today - headline sounds more positive than the detail in the article.
Wasps on brink of deal to repay multimillion-pound debts | TheBusinessDesk.com
Bondholders are owed £35mwww.thebusinessdesk.com
Article published today - headline sounds more positive than the detail in the article.
My badThat was Sep 5th
Worcester could be an issue for Wasps. If a new owners comes in and thinks they have been treated differently to Wasps by the RFU they might consider taking legal action. Not sure the RFU will be keen on leaving themselves open to that.From the DT article on Worcs, saying they're likely to be relegated. The administrator expects their appeal on Covid grounds to be rejected by the RFU...
Even were a takeover to be completed in time for Worcester to see out the season, Palmer expected the Rugby Football Union to relegate them anyway at the end of the campaign.
Palmer had lobbied the RFU not to impose the sanction designed to punish clubs that enter administration, asking them to invoke a no-fault clause covering insolvencies triggered by the coronavirus crisis.
“We put in our appeal, as we were required to, within 24 hours,” she said.
“The RFU’s response to that appears to be – but not fully confirmed – that we’re on very thin ground in terms of that appeal.”
I didn't know either. Best wishes for you and your wife, Astute.Fucking hell. I didn’t know that at all. My deepest wishes to you on that. Come on.
Wasps on brink of deal to repay multimillion-pound debts | TheBusinessDesk.com
Bondholders are owed £35mwww.thebusinessdesk.com
Article published today - headline sounds more positive than the detail in the article.
Just goes to show though to take anything said with a massive pinch of salt.That was Sep 5th
I didn't know either. Best wishes for you and your wife, Astute.
Browsing the Web whilst on the phone. Been announced that all players and staff at Worcester are having their contracts cancelled and are free to sign elsewhere
Worcester Warriors: WRFC Players Ltd wound up in High Court
WRFC Players Ltd, the payroll arm of Worcester Warriors, is wound up in the High Court in London over money owed to HMRC.www.bbc.co.uk
So how much longer can Wasps kick the can down the road?
When is the interest to the bondholders due?
Trustee surely would be obliged to act then?
I'm amazed the trustee hasn't done anything for the bondholders.
You'd think they'd be all set up with something for this sort of the event but they've done fuck all and left it to the bondholders to set up a Facebook group.
What is the relationship between Trustee and Wasps?
That interest payment is 6.5% every six months !!!! No wonder the £2k was forthcoming from the bond holders
That interest payment is 6.5% every six months !!!! No wonder the £2k was forthcoming from the bond holders
Still a ridiculously high rate. During the time the bond has been in issue there have been times when it was a struggle to get 1%6.5% annual rate payable twice a year. So effectively 3.25% every 6 months.
Yup, the timing couldn't have come at a worst time for Wasps (they might have got away with it in May!) and I really can't see how they can avoid admin. Even posters on Onceawasp are starting to realise that.It's probably not looking like such a good return now though. And given what's gone on and where interest rates currently are, what rate would bondholders need to be offered to extend? Double and then some, I'd venture.
How could Wasps afford to pay interest at (say) 13% per annum on 35million. That's £4.5 million just in interest.
If they can get out of this one it'll make those 'A-Team' escapes look realistic.
What would have to change for the exchange to remove the restrictions on trading the bond's?
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