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Special Shareholder meeting

edited February 2008 in General Charlton
Just received a letter saying meeting to be held on 10th March. basically 5 issues to be voted on.

OUTCOME OF REVIEW TO BE PLACED BE4 SHAREHOLDERS AT THIS MEETING.

but board wants to create funds by issue of bonds 66,666,667 at 0.30p

and 100,000,000 shares at 0.30p

big note though this is topay off debits and not for players
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Comments

  • We're £50m in debt???? We're absolutely f*cked if we don't go up. Next time anyone starts moaning about the 'next level', they need to be taken out and shot.

    S.
  • five members of the board have "irrevocable undertakings" to take £13,650,000 of bonds plus to re-invest some interest on loans (min £340k) so just under £14m.

    Where did you get £50m from Santa?
  • I just added the bonds and shares stated above. 67m bonds @ 30p = £20m + 100m shares @ 30p = £30m. Plz tell me i got the wrong end of the stick.

    S.
  • Also have to say a big salute to the five directors (Richard Murray, Derek Chappell, Sir Maurice Hatter, Bob Whitehand and David Sumners) who put in between £4m and £1m each having already invested heavily in previous years.
  • edited February 2008
    [quote][cite]Posted By: SantaClaus[/cite]I just added the bonds and shares stated above. 67m bonds @ 30p = £20m + 100m shares @ 30p = £30m. Plz tell me i got the wrong end of the stick.

    S.[/quote]
    You got the wrong end of the stick. : - ) Any debt figure would have been in the last set of accounts.

    Sure there will be an article in todays programme that explains it better than I can.

    On the OS now

    http://www.cafc.co.uk/default.ink
  • Good to hear.

    S.
  • edited February 2008
    The Bond Issue is a good idea, particularly as it's paying 1.7 over BOE Base Rate.

    Except they want a minimum investment of 225k and only people who have been approached by the Board can invest. Rather a limited issue then.
  • So far my understand, am i correct in two assumptions ?

    1. This will not as such create much new money for the club, it is give the ability to repay short-term loans made by directors. Ie. turning a current debt into a percentage holding.

    2. That Derek Chappell is taking a big step forward, with an eye to becoming the number one in the medium-term future
  • My reading of it is that it'll create some new money, but it's just enough to keep us ticking-over.
  • Indeed, Chappell will now be the new PLC chairman.
    The board has therefore appointed Derek Chappell as the new chairman of Charlton plc, with Richard Murray becoming chairman of Charlton Athletic Football Company Limited.

    Varney said: "Derek will assume responsibility for overseeing the future strategic direction of the company, and this will allow Richard to fully concentrate on football matters with Alan Pardew.

    "Robert Whitehand will remain as deputy chairman of Charlton plc, and Martin Simons will step down as chairman of the football club to become deputy chairman.

    "Martin will continue to play a key role in the development of the club's wide ranging community initiatives.”
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  • [cite]Posted By: AFKA Bartram[/cite]So far my understand, am i correct in two assumptions ?

    1. This will not as such create much new money for the club, it is give the ability to repay short-term loans made by directors. Ie. turning a current debt into a percentage holding.

    2. That Derek Chappell is taking a big step forward, with an eye to becoming the number one in the medium-term future


    1. As I understand it...the club currently is borrowing money/maintaining an overdraft at highish interest rates, presumably at around 5 or 6%, or whatever the normal rate is, plus has a few loans from the directors. So the directors are effectively swapping their loans for a bond, which will be converted into equity in the club at some point in the future - that looks sensible to me. It also allows the club to pay the bank debts off, but as the interest yield on the bond is at a lower rate than the banks charge we should be saving money there. On the whole it looks a positive move - the directors are happy to continue investing in the club and the face value of the bond - 30p offers them some return on investment if the future of the club is good and it's up to then to ensure that it is, so a reward for their good management of the off-field activities. Let's hope Pards gets the on-field stuff right.


    2. I think you are right, Derek Chappell would seem to be a major shareholder, having first bought in in 2005 and is now rising steadily up the politburo:

    http://www.charlton-athletic.co.uk/newsview.ink?nid=22290&newstype=n

    Described then as "one of the most significant investors" in a share issue that raised £5.5m, and presumably when Murray decides that enough is enough he'll take on more responsibility. I presume that he has invested heavily in this bond issue and/or bought up more shares since.

    BTW, what is his background? From the link he's a long-term Charlton fan and so on, how/where did he make his money, anyone know?
  • Is the share issue limited to existing shareholders.

    I am not a shareholder but would like to become one.
  • [cite]Posted By: Imissthepeanutman[/cite]Is the share issue limited to existing shareholders.

    I am not a shareholder but would like to become one.


    I think from the comments above you (see Addicked's post) - you need to invest a minimum of £225K and be invited by the board, which presumably if you had £225K to invest wouldn't be a problem. If you want to buy shares in the club give the club a call - you can buy shares, not on the open market, but through the broker retained by the club to trade their shares.
  • [cite]Posted By: Imissthepeanutman[/cite]Is the share issue limited to existing shareholders.

    I am not a shareholder but would like to become one.

    I'll sell you mine if you like. Yours for £1k.
  • [cite]Posted By: BlackForestReds[/cite]From the link he's a long-term Charlton fan and so on, how/where did he make his money, anyone know?

    He's a black stand-up comedian in the US. Very funny. Always on about the weed and stuff. Personally, I think in addition to taking over the Club, he should do the announcing too. He'd rip Tango Man to shreds!
  • [cite]Posted By: Imissthepeanutman[/cite]Is the share issue limited to existing shareholders.

    I am not a shareholder but would like to become one.

    Too late now unless you want to make a serious investment - one of the reasons we've been taken off the AIM market.

    Unless of course you know someone who might be willing to sell you some of theres ;-)
  • [cite]Posted By: LoOkOuT[/cite]
    [cite]Posted By: BlackForestReds[/cite]From the link he's a long-term Charlton fan and so on, how/where did he make his money, anyone know?

    He's a black stand-up comedian in the US. Very funny. Always on about the weed and stuff. Personally, I think in addition to taking over the Club, he should do the announcing too. He'd rip Tango Man to shreds!


    Hmmm, a hip-hop comedian who gets laughs from making fun of racists...half our fans would love him, the trouble is the other half would hate him.
  • Derek Chappell won the entrepreneur of the year a few years back.

    He's into managing private hospitals
  • [cite]Posted By: Addickted[/cite]Derek Chappell won the entrepreneur of the year a few years back.

    He's into managing private hospitals

    So hes made his money out of poor folk like Corey Gibbs.
  • so lets cut to the chase,has he got any financial clout.Lets stop pussyfooty around thats what we want to know
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  • y dont i ever understand what you lot are talking about.

    explain it to me have we got any money yes or no

    does this buy players yes or no and who the feck is derek chappell is he phils dad and the secret daddy of paddy mcarthey
  • [cite]Posted By: nth london addick jr[/cite]y dont i ever understand what you lot are talking about.

    explain it to me have we got any money yes or no

    does this buy players yes or no and who the feck is derek chappell is he phils dad and the secret daddy of paddy mcarthey


    No, this isn't about raising money to buy players but to restructure debt and the club's finances.
  • edited February 2008
    Showing my naivity here but isnt true that they cant find a buyer and they need the money ? Some present and past board member/members want there money back.

    Id be willing to pay money towards the east stand extension and getitng Spurs in for a couple of seasons while white hart lane is being rebuilt. This would make a profit surely that is what business is about or buying selhurst. But not to pay back loans to directors.

    Seriously it does sound a desperate move to me. And we were taking the mick out of Jordan and Palace. Though Richard Murray owns the clubs major assests i.e The Valley and the training ground lets hope he is not fed up with it or is running out of dosh himself.
  • Pete, I don't think its quite as you put it but it does show some worrying things to me, chiefly that the club clearly has had cash flow problems which it has only managed by short-term loans and bank funding. No doubt that much of the loans were being provided by the same people underwriting the bonds/equity scheme. This new plan does strengthens the balance sheet. It is a good housekeeping measure but it underlines the working capital needed to run the club when revenues have fallen away, and how difficult things become to remain solvent when you fall out of the top flight. The lower the revenue, the more impact there is on working capital required to keep the business solvent. Its difficulties with cash flow that kills businesses. If we don't go up at the end of the Parachute period, more of the same may well be required.
  • [cite]Posted By: pete_tong1[/cite]

    Seriously it does sound a desperate move to me. And we were taking the mick out of Jordan and Palace. Though Richard Murray owns the clubs major assests i.e The Valley and the training ground lets hope he is not fed up with it or is running out of dosh himself.

    He's just dumped another few mill into the club, he's not running out of cash at all.
  • Fair enough Stu it wasnt a statment of fact.

    So who wants their loan money back then Greg Bone ? Playing devils advocate.
  • It's loans to 3rd parties I believe, not to directors.

    I'm pretty certain we are in a far better financial situation than most clubs in this league, yes there is problems but I don't think it's much to worry about.
  • [cite]Posted By: Stu of SE7[/cite]It's loans to 3rd parties I believe, not to directors.

    I'm pretty certain we are in a far better financial situation than most clubs in this league, yes there is problems but I don't think it's much to worry about.

    The short term directors loans are loans from the directors to CAFC. Each Director will have a loan account with the club so if the club needs funds quick, for cash-flow or other reasons, the funds can be drawn on. I'm not an accountant but I believe there are income tax complications with such arrangements which may be why they don't want them to continue?
  • Have these got some kind of interest payment on them bing ?
  • The good thing about this announcement is, of course, that it shows the continued commitment of RM and others to keep underwriting the clubs debts. What is more worrying is that the club clearly has built up additional debt in it's quest to stay in and then to get back to the Premier League.
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