what is a hedge fund?... (2 Viewers)

Colin1883 said:

My understanding of it is...

A company that invests co-investors money and take a management fee for doing so whether the investment makes a loss or a profit.

My real question is...

If sisu take the management fee ie 10percent and then reinvest it in ccfc could they say this is part of the debt owed to them?

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skybluesam66 said:

Absolutely

The debt - including that transferred from the purchase - will no doubt have been accruing interest also
PWKH also mentioned management fees (although i am not sure the accounts supported the theory)

so even if they acquired the club for nothing - the original balance sheet may have been

goodwill 30m
old debt (-30m)

they then write off the goodwill, and claim that is part of the losses ( albeit they have not really lost the money)

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