Absolutely nailed on today. I've been told that there were staff meetings down at Sainsburys and ASDA on Bugsbys Way to make sure the shelves are well stocked with champagne.
I do wish people would read all the posts fully as then there wouldn't be any misunderstandings.
A previous poster had said that J Ackworth had got the info from someone at a staff meeting before the match where they had been briefed about the takeover
@Henry Irving then said that there was no staff meeting
@AFKABartram then posted that the stewards have a briefing before the match & so Ackworth could be refering to this meeting
@Airman Brown Brown then said why would the stewards be told about the takeover.
I don't think @AFKABartram meant that the stewards were being told about the takeover but simply the stewards have a briefing before every match & so hence that is where Ackworths "meeting" is related to.
chinese whispers......jeez. send three 'n fourpence, we're going to a dance.
So are you saying there’s definitely going to be a takeover today then and the new owners could be from China ?
Absolutely nailed on today. I've been told that there were staff meetings down at Sainsburys and ASDA on Bugsbys Way to make sure the shelves are well stocked with champagne.
We definitely will not go into administration, but we could be liquidated. If RD thought that selling the players and all others assets ( Valley, Sparrows Lane, etc) would bring him more than simply selling the club, despite having to pay off the ex-directors, he could do it. He's mad enough and pissed off enough with us, though there would be a massive backlash. He has the argument that he has been trying to sell and is no longer willing to fund massive losses each month...who knows what the old scroat will do if new owners can't be found.
I do wish people would read all the posts fully as then there wouldn't be any misunderstandings.
A previous poster had said that J Ackworth had got the info from someone at a staff meeting before the match where they had been briefed about the takeover
@Henry Irving then said that there was no staff meeting
@AFKABartram then posted that the stewards have a briefing before the match & so Ackworth could be refering to this meeting
@Airman Brown Brown then said why would the stewards be told about the takeover.
I don't think @AFKABartram meant that the stewards were being told about the takeover but simply the stewards have a briefing before every match & so hence that is where Ackworths "meeting" is related to.
chinese whispers......jeez. send three 'n fourpence, we're going to a dance.
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
Cut the asking price to say £10m, I’m sure there’d be interest at that price. As low as that price he’d still be better off than if he liquidates or puts the club into administration.
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
I heard there will be a meeting this morning to stock up on shrimps and bbqs. Also catering staff will be told to keep all corks from wine bottles, something to do with a new range the club are planning to release in the superstore.
There was 2 people in press gantry Saturday getting very animated about the game. They were far to keen and excited about Charlton to be regular fans.
They were not reporters and at the end of the game made there way over to the directors box leaned over and was making conversation with someone below.
We definitely will not go into administration, but we could be liquidated. If RD thought that selling the players and all others assets ( Valley, Sparrows Lane, etc) would bring him more than simply selling the club, despite having to pay off the ex-directors, he could do it. He's mad enough and pissed off enough with us, though there would be a massive backlash. He has the argument that he has been trying to sell and is no longer willing to fund massive losses each month...who knows what the old scroat will do if new owners can't be found.
This is the scenario that really worries me. RD could resign the club from the EFL (I believe there is a precedent, the old Accrington Stanley in 1962) and simply sell off all the assets. However, if he did that he would have no choice but to write off all the debt that he owes himself, which it seems is something he has been reluctant to do in selling to a new owner. Therefore it seems the best outcome for RD would be to sell the club as a going concern, but we all know that common sense is not a commodity with which RD is particularly blessed.
Given that the AFC deal seems to be collapsing, sooner or later RD will have to choose from three options:
Keep the club and cover the losses forever and a day
Sell the club as a going concern for the best price a buyer is willing and able to pay, which would necessarily involve writing off at least some debt.
Resigning from the EFL and disposing of the assets, writing off all of the debt.
Anyone like to predict which path he would choose?
PS: Happy to be corrected if any of the above is factually inaccurate.
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
The Staprix debt is circa £65m - some of it is dubious as it is made up of notional interest, so we can debate whether it is real money. It also includes his purchase price as set out in the accounts of £18.6m. In the real world he has loaned the club about £40m ignoring the interest (which Staprix may have paid out). Someone will have to deal with the £7m ex-directors debt one way or another.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
The Staprix debt is circa £65m - some of it is dubious as it is made up of notional interest, so we can debate whether it is real money. It also includes his purchase price as set out in the accounts of £18.6m. In the real world he has loaned the club about £40m ignoring the interest (which Staprix may have paid out). Someone will have to deal with the £7m ex-directors debt one way or another.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.
Right.
So if he can’t find a buyer, then a viable option would be to put the club into administration and stop adding to the debt pile which must grow larger every month and then, once the administrators have sold the assets and the ex-directors have taken their cut, deduct whatever he gets as the next creditor in line from the £40M debt that’s been run up and that’s his haircut. He’ll still take a hit, but he won’t be saddled with the ongoing costs anymore.
I’m not saying the above will happen, it’s more likely he’ll find a buyer, but I don’t think it’s as unlikely that we could end up going down that route as others seem to believe.
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
The Staprix debt is circa £65m - some of it is dubious as it is made up of notional interest, so we can debate whether it is real money. It also includes his purchase price as set out in the accounts of £18.6m. In the real world he has loaned the club about £40m ignoring the interest (which Staprix may have paid out). Someone will have to deal with the £7m ex-directors debt one way or another.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.</blockquote
His debt is lower than 40 million because you haven't taken off player sales which he has trousered
There was 2 people in press gantry Saturday getting very animated about the game. They were far to keen and excited about Charlton to be regular fans.
They were not reporters and at the end of the game made there way over to the directors box leaned over and was making conversation with someone below.
The club has started issuing sponsors' comp in the press box/row for some reason. We had 8 comps yesterday and 6 were in the press row, though we just picked some empty seats a little further back so we could all sit together.
There was 2 people in press gantry Saturday getting very animated about the game. They were far to keen and excited about Charlton to be regular fans.
They were not reporters and at the end of the game made there way over to the directors box leaned over and was making conversation with someone below.
Fire up the rumour wagon lads, we've got a live one!
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
The Staprix debt is circa £65m - some of it is dubious as it is made up of notional interest, so we can debate whether it is real money. It also includes his purchase price as set out in the accounts of £18.6m. In the real world he has loaned the club about £40m ignoring the interest (which Staprix may have paid out). Someone will have to deal with the £7m ex-directors debt one way or another.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.
There was 2 people in press gantry Saturday getting very animated about the game. They were far to keen and excited about Charlton to be regular fans.
They were not reporters and at the end of the game made there way over to the directors box leaned over and was making conversation with someone below.
Sounds like Scooby and his less intelligent mate getting in for free, dressed up as St John's Ambulance again.....
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
The Staprix debt is circa £65m - some of it is dubious as it is made up of notional interest, so we can debate whether it is real money. It also includes his purchase price as set out in the accounts of £18.6m. In the real world he has loaned the club about £40m ignoring the interest (which Staprix may have paid out). Someone will have to deal with the £7m ex-directors debt one way or another.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.
Right.
So if he can’t find a buyer, then a viable option would be to put the club into administration and stop adding to the debt pile which must grow larger every month and then, once the administrators have sold the assets and the ex-directors have taken their cut, deduct whatever he gets as the next creditor in line from the £40M debt that’s been run up and that’s his haircut. He’ll still take a hit, but he won’t be saddled with the ongoing costs anymore.
I’m not saying the above will happen, it’s more likely he’ll find a buyer, but I don’t think it’s as unlikely that we could end up going down that route as others seem to believe.
Surely he can't put the club into administration? That would be like taking court action against himself.
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
The Staprix debt is circa £65m - some of it is dubious as it is made up of notional interest, so we can debate whether it is real money. It also includes his purchase price as set out in the accounts of £18.6m. In the real world he has loaned the club about £40m ignoring the interest (which Staprix may have paid out). Someone will have to deal with the £7m ex-directors debt one way or another.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.
Right.
So if he can’t find a buyer, then a viable option would be to put the club into administration and stop adding to the debt pile which must grow larger every month and then, once the administrators have sold the assets and the ex-directors have taken their cut, deduct whatever he gets as the next creditor in line from the £40M debt that’s been run up and that’s his haircut. He’ll still take a hit, but he won’t be saddled with the ongoing costs anymore.
I’m not saying the above will happen, it’s more likely he’ll find a buyer, but I don’t think it’s as unlikely that we could end up going down that route as others seem to believe.
No, if he puts the club into admin, then the administrators will sell the club as a going concern for whatever they can get. That could be as little as (say) £10m, if that's all any potential buyer would offer. £7m of that would go to the first creditors (ex directors) and £3m to Staprix as the next debtor. As the Staprix debt is currently (around) £65m, RD will have taken a £62m haircut! He's not going to do that.
If he liquidated the club, he might (and all numbers are guesses) be able to rake in around £5m for players, £10m for the Valley, £5m for the training ground, and another million or so on fixtures and fittings (all against his own current £65m debt), then pay off the ex-directors, thus meaning he would only lose £51m (so not £62m when going the admin route).
We could all play with the numbers and have better guesses than I, but ultimately the best way out for him currently, is to sell the club as a going concern and if the Aussie (or anyone) is willing to pay him about £40m, that is his best option at this time.
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
The Staprix debt is circa £65m - some of it is dubious as it is made up of notional interest, so we can debate whether it is real money. It also includes his purchase price as set out in the accounts of £18.6m. In the real world he has loaned the club about £40m ignoring the interest (which Staprix may have paid out). Someone will have to deal with the £7m ex-directors debt one way or another.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.
Right.
So if he can’t find a buyer, then a viable option would be to put the club into administration and stop adding to the debt pile which must grow larger every month and then, once the administrators have sold the assets and the ex-directors have taken their cut, deduct whatever he gets as the next creditor in line from the £40M debt that’s been run up and that’s his haircut. He’ll still take a hit, but he won’t be saddled with the ongoing costs anymore.
I’m not saying the above will happen, it’s more likely he’ll find a buyer, but I don’t think it’s as unlikely that we could end up going down that route as others seem to believe.
No, if he puts the club into admin, then the administrators will sell the club as a going concern for whatever they can get. That could be as little as (say) £10m, if that's all any potential buyer would offer. £7m of that would go to the first creditors (ex directors) and £3m to Staprix as the next debtor. As the Staprix debt is currently (around) £65m, RD will have taken a £62m haircut! He's not going to do that.
If he liquidated the club, he might (and all numbers are guesses) be able to rake in around £5m for players, £10m for the Valley, £5m for the training ground, and another million or so on fixtures and fittings (all against his own current £65m debt), then pay off the ex-directors, thus meaning he would only lose £51m (so not £62m when going the admin route).
We could all play with the numbers and have better guesses than I, but ultimately the best way out for him currently, is to sell the club as a going concern and if the Aussie (or anyone) is willing to pay him about £40m, that is his best option at this time.
I agree, that’s why I started with “So if he can’t find a buyer”.
Surely the debt shouldn't be a factor other than as an example that the club is seriously loss making. So if the plank bought the club for £18m, where has there been any increase in value? We have lost about half of our fans, Have a bare bones squad, Are playing in League One and are becoming established there with a greater risk of going lower than higher and finally we have no staff or even a full time manager or CEO. How can it be relevant how much the plank has put in the club, it surely is the sort of business you give away to stem the future losses!
I do wish people would read all the posts fully as then there wouldn't be any misunderstandings.
A previous poster had said that J Ackworth had got the info from someone at a staff meeting before the match where they had been briefed about the takeover
@Henry Irving then said that there was no staff meeting
@AFKABartram then posted that the stewards have a briefing before the match & so Ackworth could be refering to this meeting
@Airman Brown Brown then said why would the stewards be told about the takeover.
I don't think @AFKABartram meant that the stewards were being told about the takeover but simply the stewards have a briefing before every match & so hence that is where Ackworths "meeting" is related to.
chinese whispers......jeez. send three 'n fourpence, we're going to a dance.
So are you saying there’s definitely going to be a takeover today then and the new owners could be from China ?
NO! he's inviting us out to some sort of retro party. Pay attention!
Surely the debt shouldn't be a factor other than as an example that the club is seriously loss making. So if the plank bought the club for £18m, where has there been any increase in value? We have lost about half of our fans, Have a bare bones squad, Are playing in League One and are becoming established there with a greater risk of going lower than higher and finally we have no staff or even a full time manager or CEO. How can it be relevant how much the plank has put in the club, it surely is the sort of business you give away to stem the future losses!
Can we be Liquidated? what would this mean? Could RD do this??@AirmanBrown??
No, we won't be liquidated/go into administration.
This generally happens when companies can't pay their debts to creditors and end up having the debts written off or only pay at let's say 1p in the £1 owed (as an example).
As all the debt is owed to RD. He's not going to put Charlton into administration, in order to avoid paying the money owed to himself.
We could be liquidated but the main creditor would be Mr Ducktape so wouldn't make much sense. Planning for the ground would be against the previous attempt which formed the Valley Party, so is unlikely to happen. Once done RD doesn't get to choose who buys the assets so the Ozzies would buy the club for significantly less than £40m (or £47m for the intellectually challenged)
But what if the Aussie bid has fallen apart and there are no other suitors waiting in the wings?
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
I don’t think that makes any sense. Why would Roland take a haircut on debt owed to himself?
Isn’t he going to be taking a hit either way? If the Aussies (or whom ever) pay circa £40M and he retains/writes off debts of circa £60M?
The Staprix debt is circa £65m - some of it is dubious as it is made up of notional interest, so we can debate whether it is real money. It also includes his purchase price as set out in the accounts of £18.6m. In the real world he has loaned the club about £40m ignoring the interest (which Staprix may have paid out). Someone will have to deal with the £7m ex-directors debt one way or another.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.
Right.
So if he can’t find a buyer, then a viable option would be to put the club into administration and stop adding to the debt pile which must grow larger every month and then, once the administrators have sold the assets and the ex-directors have taken their cut, deduct whatever he gets as the next creditor in line from the £40M debt that’s been run up and that’s his haircut. He’ll still take a hit, but he won’t be saddled with the ongoing costs anymore.
I’m not saying the above will happen, it’s more likely he’ll find a buyer, but I don’t think it’s as unlikely that we could end up going down that route as others seem to believe.
No, if he puts the club into admin, then the administrators will sell the club as a going concern for whatever they can get. That could be as little as (say) £10m, if that's all any potential buyer would offer. £7m of that would go to the first creditors (ex directors) and £3m to Staprix as the next debtor. As the Staprix debt is currently (around) £65m, RD will have taken a £62m haircut! He's not going to do that.
If he liquidated the club, he might (and all numbers are guesses) be able to rake in around £5m for players, £10m for the Valley, £5m for the training ground, and another million or so on fixtures and fittings (all against his own current £65m debt), then pay off the ex-directors, thus meaning he would only lose £51m (so not £62m when going the admin route).
We could all play with the numbers and have better guesses than I, but ultimately the best way out for him currently, is to sell the club as a going concern and if the Aussie (or anyone) is willing to pay him about £40m, that is his best option at this time.
Also, we shouldn't forget that the Administrators or Liquidators like to take a nice hefty slice of any assets and then there's the preferential creditors, like HMRC and staff redundancy costs. Insolvency Practitioners are specialists who don't come cheap. Then, in the case of the latter option, there's the Official Receiver as provisional liquidator: They like a nice slice too. On top of all that a liquidator would be obliged to provide a report(s) to The Insolvency Service and would highlight any wrongdoing by the directors. I'll leave it for Roland to decide whether that's an option he'd like to avoid.
Comments
Under those circumstances might it make sense to put the club into administration, take a big haircut on the debt (especially as the ex-directors need to get their £7M before RD would see a penny) rather than continue to fund Charlton’s losses by throwing good money after bad?
They were not reporters and at the end of the game made there way over to the directors box leaned over and was making conversation with someone below.
Given that the AFC deal seems to be collapsing, sooner or later RD will have to choose from three options:
Keep the club and cover the losses forever and a day
Sell the club as a going concern for the best price a buyer is willing and able to pay, which would necessarily involve writing off at least some debt.
Resigning from the EFL and disposing of the assets, writing off all of the debt.
Anyone like to predict which path he would choose?
PS: Happy to be corrected if any of the above is factually inaccurate.
He is going to take a hit whatever he does, but the total amount in play is a long way shy of £100m.
So if he can’t find a buyer, then a viable option would be to put the club into administration and stop adding to the debt pile which must grow larger every month and then, once the administrators have sold the assets and the ex-directors have taken their cut, deduct whatever he gets as the next creditor in line from the £40M debt that’s been run up and that’s his haircut. He’ll still take a hit, but he won’t be saddled with the ongoing costs anymore.
I’m not saying the above will happen, it’s more likely he’ll find a buyer, but I don’t think it’s as unlikely that we could end up going down that route as others seem to believe.
If he liquidated the club, he might (and all numbers are guesses) be able to rake in around £5m for players, £10m for the Valley, £5m for the training ground, and another million or so on fixtures and fittings (all against his own current £65m debt), then pay off the ex-directors, thus meaning he would only lose £51m (so not £62m when going the admin route).
We could all play with the numbers and have better guesses than I, but ultimately the best way out for him currently, is to sell the club as a going concern and if the Aussie (or anyone) is willing to pay him about £40m, that is his best option at this time.