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The Takeover Thread - Duchatelet Finally Sells (Jan 2020)

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  • Six months to buy the training ground.

    Haven't got that much money then.
  • Chunes said:
    Six months to buy the training ground.

    Haven't got that much money then.
    Or there is some sort of complication around title or something?
  • Scoham said:
    https://www.londonnewsonline.co.uk/east-street-investments-withdraw-lucrative-contract-offer-to-lyle-taylor-and-set-to-listen-to-offers-for-charlton-athletic-striker/

    ESI have confirmed they own The Valley as part of their takeover and have a commitment to buy the club’s training ground within the next six months.
    Sorry Scoham hadn’t looked in here , started a thread cos I think this needed highlighting , seems very “strange” but who knows 
  • Chunes said:
    Six months to buy the training ground.

    Haven't got that much money then.
    Or there is some sort of complication around title or something?
    Hope you are right. 6 months seems a bit of an odd one tho. 
    Never straightforward with our club
  • Chunes said:
    Six months to buy the training ground.

    Haven't got that much money then.
    Or there is some sort of complication around title or something?
    Not a six month complication. 
  • Chunes said:
    Six months to buy the training ground.

    Haven't got that much money then.
    I'm not sure we should automatically assume it's money related, it is however somewhat worrying that we no longer own our own training ground.

    As there's no actual quotes given, I'm going hold onto to the hope that londonnewsonline have this one wrong.
  • Chunes said:
    Six months to buy the training ground.

    Haven't got that much money then.
    I'm not sure we should automatically assume it's money related, it is however somewhat worrying that we no longer own our own training ground.

    As there's no actual quotes given, I'm going hold onto to the hope that londonnewsonline have this one wrong.
    ESI have had a direct line to them for a while now.  I doubt they are wrong. 
  • Cafc43v3r said:
    Chunes said:
    Six months to buy the training ground.

    Haven't got that much money then.
    I'm not sure we should automatically assume it's money related, it is however somewhat worrying that we no longer own our own training ground.

    As there's no actual quotes given, I'm going hold onto to the hope that londonnewsonline have this one wrong.
    ESI have had a direct line to them for a while now.  I doubt they are wrong. 
    Me too, then hopefully they'll offer an explanation asap as to why RD still has a stinky finger in our pie!
  • Change of thread title? Ding Dong Wrong
  • edited January 2020
    Personally, as much as I hate Duchatelet, the priority was ownership of The Valley, which thankfully is now in the hands of ESI.
    I would have no problems with the training ground remaining in Duchatelet's ownership as long as ESI agree a long term lease at a fair market rent. However, as others have already suggested, there may well be outstanding legal issues, and ESI have given Duchatelet six months to settle these.
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  • Very odd

    Not at all happy about a separation of ownership of the training ground and the club.

    However there is a "commitment" to buy it so it could be resolved quickly.

    It still raises a few serious questions.
  • Such as what is the nature of the commitment
  • Chunes said:
    Six months to buy the training ground.

    Haven't got that much money then.
    Probably wanted to be in for the transfer window.
    championship status would be at greater risk if they weren’t.
    Ballsy towards Taylor and I like that attitude 
  • MalMal
    edited January 2020
    £15M to develop the training ground, that’s a lot of money, why are people worrying. 
    I guess were so used to being let down, weve become suspicious on anything that sounds good, meaning if EFI havent spent £20 mil on players by end of the week, they dont have the money.
  • If the ‘£15m’ number for the training ground is to be believed, does that all but confirm additional investment from elsewhere? 

    Surely Nimer wouldn’t be spending this much out of his own pocket? 
  • ESI has filed more papers dealing with share allotments available to view in a few days time.  Could be ESI has acquired all the assets of the club rather than buying the company.  Would eliminate any potential residual legal liabilities for skeletons found in the cupboard re past transactions and mean a new clean start. 
    A contract to acquire the assets of the company rather than a contract to acquire the shares of the company which owns the asset is perfectly normal practice particularly where all the intrinsic value exists in the assets rather than the business and ensures clean undisputed title of the new business from the outset.
  • ESI has filed more papers dealing with share allotments available to view in a few days time.  Could be ESI has acquired all the assets of the club rather than buying the company.  Would eliminate any potential residual legal liabilities for skeletons found in the cupboard re past transactions and mean a new clean start. 
    A contract to acquire the assets of the company rather than a contract to acquire the shares of the company which owns the asset is perfectly normal practice particularly where all the intrinsic value exists in the assets rather than the business and ensures clean undisputed title of the new business from the outset.
    Thanks @Dippenhall

    In this case isn't it the other way around in that they have bought the shares but not all the assets?

    They own the Valley but not SL so it doesn't seem they are that short of cash.


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  • ESI has filed more papers dealing with share allotments available to view in a few days time.  Could be ESI has acquired all the assets of the club rather than buying the company.  Would eliminate any potential residual legal liabilities for skeletons found in the cupboard re past transactions and mean a new clean start. 
    A contract to acquire the assets of the company rather than a contract to acquire the shares of the company which owns the asset is perfectly normal practice particularly where all the intrinsic value exists in the assets rather than the business and ensures clean undisputed title of the new business from the outset.
    Thanks @Dippenhall

    In this case isn't it the other way around in that they have bought the shares but not all the assets?

    They own the Valley but not SL so it doesn't seem they are that short of cash.


    There have been no registered share transactions at Companies House for Baton or Holdings, only for CAFC Ltd.  That was the £21.5m share issue that closely matches up with the initial loan from RD when he bought the club.  

    Could be that ESI has bought the real estate of the Valley from Baton/Holdings? rather than the shares, and the cash paid by ESI for that real estate was used by RD to pump into CAFC to fund the new £21.5m share allocation.  That cash, held by CAFC, then being used to re-pay part of the Staprix loan.

    So the title for SL could similarly be bought from Baton/Holdings, or alternatively the shares of Baton/Holdings acquired. In either case binding contracts have been exchanged subject to due diligence.  What RD always said - I'm giving the club away but will sell the assets.

    Worst scenario would be some legal impediment to a clean title of ESI to SL and a legal dispute between ESI and RD resulting in SL being in limbo. That potential problem would arise regardless of how the acquisition has been structured.
  • Personally, as much as I hate Duchatelet, the priority was ownership of The Valley, which thankfully is now in the hands of ESI.
    I would have no problems with the training ground remaining in Duchatelet's ownership as long as ESI agree a long term lease at a fair market rent. However, as others have already suggested, there may well be outstanding legal issues, and ESI have given Duchatelet six months to settle these.
    I'm with you on this totally.

    It is too easy to think the training ground issue is financial.
  • ESI has filed more papers dealing with share allotments available to view in a few days time.  Could be ESI has acquired all the assets of the club rather than buying the company.  Would eliminate any potential residual legal liabilities for skeletons found in the cupboard re past transactions and mean a new clean start. 
    A contract to acquire the assets of the company rather than a contract to acquire the shares of the company which owns the asset is perfectly normal practice particularly where all the intrinsic value exists in the assets rather than the business and ensures clean undisputed title of the new business from the outset.
    Thanks @Dippenhall

    In this case isn't it the other way around in that they have bought the shares but not all the assets?

    They own the Valley but not SL so it doesn't seem they are that short of cash.


    There have been no registered share transactions at Companies House for Baton or Holdings, only for CAFC Ltd.  That was the £21.5m share issue that closely matches up with the initial loan from RD when he bought the club.  

    Could be that ESI has bought the real estate of the Valley from Baton/Holdings? rather than the shares, and the cash paid by ESI for that real estate was used by RD to pump into CAFC to fund the new £21.5m share allocation.  That cash, held by CAFC, then being used to re-pay part of the Staprix loan.

    So the title for SL could similarly be bought from Baton/Holdings, or alternatively the shares of Baton/Holdings acquired. In either case binding contracts have been exchanged subject to due diligence.  What RD always said - I'm giving the club away but will sell the assets.

    Worst scenario would be some legal impediment to a clean title of ESI to SL and a legal dispute between ESI and RD resulting in SL being in limbo. That potential problem would arise regardless of how the acquisition has been structured.
    Thanks @Dippenhall very informative

    Does make me think that these issues over Sparrows Lane were a factor in previous takeover's falling through.  We may never know but it all points to there being outstanding issues that other potential buyers wouldn't put up with and neither would ESI, they just found a way around it for six months.
  • ESI has filed more papers dealing with share allotments available to view in a few days time.  Could be ESI has acquired all the assets of the club rather than buying the company.  Would eliminate any potential residual legal liabilities for skeletons found in the cupboard re past transactions and mean a new clean start. 
    A contract to acquire the assets of the company rather than a contract to acquire the shares of the company which owns the asset is perfectly normal practice particularly where all the intrinsic value exists in the assets rather than the business and ensures clean undisputed title of the new business from the outset.
    Thanks @Dippenhall

    In this case isn't it the other way around in that they have bought the shares but not all the assets?

    They own the Valley but not SL so it doesn't seem they are that short of cash.


    There have been no registered share transactions at Companies House for Baton or Holdings, only for CAFC Ltd.  That was the £21.5m share issue that closely matches up with the initial loan from RD when he bought the club.  

    Could be that ESI has bought the real estate of the Valley from Baton/Holdings? rather than the shares, and the cash paid by ESI for that real estate was used by RD to pump into CAFC to fund the new £21.5m share allocation.  That cash, held by CAFC, then being used to re-pay part of the Staprix loan.

    So the title for SL could similarly be bought from Baton/Holdings, or alternatively the shares of Baton/Holdings acquired. In either case binding contracts have been exchanged subject to due diligence.  What RD always said - I'm giving the club away but will sell the assets.

    Worst scenario would be some legal impediment to a clean title of ESI to SL and a legal dispute between ESI and RD resulting in SL being in limbo. That potential problem would arise regardless of how the acquisition has been structured.
    Thanks @Dippenhall very informative

    Does make me think that these issues over Sparrows Lane were a factor in previous takeover's falling through.  We may never know but it all points to there being outstanding issues that other potential buyers wouldn't put up with and neither would ESI, they just found a way around it for six months.
    @Henry, EFI have obviously then pushed harder, and wanted to obtain the club more, than any of the other bidders, and I guess surprising that the likes of the Aussies, who were scraping for the money, didnt think about the SL as a separate future purchase. Will make Matt Southall’s Interview interesting, if asked why they wanted to buy this club so bad.
  • Mal said:
    ESI has filed more papers dealing with share allotments available to view in a few days time.  Could be ESI has acquired all the assets of the club rather than buying the company.  Would eliminate any potential residual legal liabilities for skeletons found in the cupboard re past transactions and mean a new clean start. 
    A contract to acquire the assets of the company rather than a contract to acquire the shares of the company which owns the asset is perfectly normal practice particularly where all the intrinsic value exists in the assets rather than the business and ensures clean undisputed title of the new business from the outset.
    Thanks @Dippenhall

    In this case isn't it the other way around in that they have bought the shares but not all the assets?

    They own the Valley but not SL so it doesn't seem they are that short of cash.


    There have been no registered share transactions at Companies House for Baton or Holdings, only for CAFC Ltd.  That was the £21.5m share issue that closely matches up with the initial loan from RD when he bought the club.  

    Could be that ESI has bought the real estate of the Valley from Baton/Holdings? rather than the shares, and the cash paid by ESI for that real estate was used by RD to pump into CAFC to fund the new £21.5m share allocation.  That cash, held by CAFC, then being used to re-pay part of the Staprix loan.

    So the title for SL could similarly be bought from Baton/Holdings, or alternatively the shares of Baton/Holdings acquired. In either case binding contracts have been exchanged subject to due diligence.  What RD always said - I'm giving the club away but will sell the assets.

    Worst scenario would be some legal impediment to a clean title of ESI to SL and a legal dispute between ESI and RD resulting in SL being in limbo. That potential problem would arise regardless of how the acquisition has been structured.
    Thanks @Dippenhall very informative

    Does make me think that these issues over Sparrows Lane were a factor in previous takeover's falling through.  We may never know but it all points to there being outstanding issues that other potential buyers wouldn't put up with and neither would ESI, they just found a way around it for six months.
    @Henry, EFI have obviously then pushed harder, and wanted to obtain the club more, than any of the other bidders, and I guess surprising that the likes of the Aussies, who were scraping for the money, didnt think about the SL as a separate future purchase. Will make Matt Southall’s Interview interesting, if asked why they wanted to buy this club so bad.
    maybe @mal or RD was getting more desperate/flexible as time wore on and a sale looked less likely while the team slid down the table.  RD would have had a dilemma on his hands now if he hadn't sold as to whether to spend on the squad or see the club relegated and so the sale price drop.  All speculation but it fits.

    But as you say, maybe ESI just wanted it more and were willing to pay more. 
  • ESI has filed more papers dealing with share allotments available to view in a few days time.  Could be ESI has acquired all the assets of the club rather than buying the company.  Would eliminate any potential residual legal liabilities for skeletons found in the cupboard re past transactions and mean a new clean start. 
    A contract to acquire the assets of the company rather than a contract to acquire the shares of the company which owns the asset is perfectly normal practice particularly where all the intrinsic value exists in the assets rather than the business and ensures clean undisputed title of the new business from the outset.
    Thanks @Dippenhall

    In this case isn't it the other way around in that they have bought the shares but not all the assets?

    They own the Valley but not SL so it doesn't seem they are that short of cash.


    There have been no registered share transactions at Companies House for Baton or Holdings, only for CAFC Ltd.  That was the £21.5m share issue that closely matches up with the initial loan from RD when he bought the club.  

    Could be that ESI has bought the real estate of the Valley from Baton/Holdings? rather than the shares, and the cash paid by ESI for that real estate was used by RD to pump into CAFC to fund the new £21.5m share allocation.  That cash, held by CAFC, then being used to re-pay part of the Staprix loan.

    So the title for SL could similarly be bought from Baton/Holdings, or alternatively the shares of Baton/Holdings acquired. In either case binding contracts have been exchanged subject to due diligence.  What RD always said - I'm giving the club away but will sell the assets.

    Worst scenario would be some legal impediment to a clean title of ESI to SL and a legal dispute between ESI and RD resulting in SL being in limbo. That potential problem would arise regardless of how the acquisition has been structured.
    Yes, as you know that is entirely possible. If it helps with any of FPP, Duchatelet tax on sale, investment ownership in UAE then this is the sort of thing a team would optimise before signing all the documents.

    without being in that team we don’t know what they were trying to make better and the tensions in the sale process. 

    However it’s down now and they will play out over time. Doesn’t look either u usual or skewed against what we have left to me so far. 
  • Press conference Thursday I'm told.
  • Press conference Thursday I'm told.
    At the very least I expect them to announce that Bowyer, Jackson and Gallen are all being retained.
This discussion has been closed.

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