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The Takeover Thread - Duchatelet Finally Sells (Jan 2020)

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  • Press conference Thursday I'm told.
    At the very least I expect them to announce that Bowyer, Jackson and Gallen are all being retained.
    And if they don't this place will go into complete meltdown
  • Press conference Thursday I'm told.
    At the very least I expect them to announce that Bowyer, Jackson and Gallen are all being retained.
    Seems I was wrong! 
  • Now that's the way to get your wages trebled Macaulay, get rid of your present agent, and you will have more for yourself.
    There are ex-pros with brains at the PFA who can do that service so much cheaper and if Taylor goes, you will be offered a mega increase as soon as you walk into Matt Southall's office.
    From 3k to 9k without even blinking, score another 8 plus a few assists and you will be in a great position in the summer.
  • Update from Companies House.

    Resolutions The sum of £21,494,704.00 be capitalised 27/12/2019 Restiction on auth share cap revoked and deleted 27/12/2019 This document is being processed and will be available in 5 days.
    08 Jan 2020



    Can someone please translate?
  • Addickted said:
    Update from Companies House.

    08 Jan 2020 Resolutions
    • The sum of £21,494,704.00 be capitalised 27/12/2019
    • Restiction on auth share cap revoked and deleted 27/12/2019
    This document is being processed and will be available in 5 days.



    Can someone please translate?
    Yes.  It means that the information will be worked on and shared in just less than 6 days.  

    (No idea what the bit above it means though.  Sorry). 
  • Sage said:

    What are the implications of this on ffp? 
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  • edited January 2020
    Wonder if this relates to the former directors money that was owed?? 
  • Wonder if this relates to the former directors money that was owed?? 
    Bit of a nice bonus as the total owed was only £7m odd
  • Think it is just authorisation of what happened on 27 December when cash of £21.49m deposited in CAFC and was applied to provide 21,494,704 bonus shares to the existing shareholder's 4.98m of shares.  Just housekeeping.
  • Look who is buying me that coffee fans great to spend time with another ‘younger’ chairman in game. needs more of them

    image
  • Andrew Neil attending?
  • I've got no numbers in front of me, but as a complete guess is that £21m the difference between what ESI are buying the club for and the balance on the Stayprix loan account?
  • Wonder if this relates to the former directors money that was owed?? 
    The cash injected to acquire the shares does not mean the cash has not then been used to reduce the Staprix loan. The cash can be used for whatever purpose RD permits.

    The Director loans attach to the company that owes the money. If ESI do not acquire the Charlton companies, only their assets, ESI has no liability for any loans.  

    Could explain the acrimony over the Director loans if RD insisting the purchaser of assets also acquires liabilities for the Director loans - makes no sense and likely to be resisted purely on principle.

    In truth the Director loans might never be repayable if they are relying on the shell companies that RD retains having sold all their assets to ESI. Would speculate that the terms only apply to the promotion of the team whilst owned by CAFC, not a new owner. So if repaid would be relying on a goodwill gesture from someone. That goodwill gesture may have already been committed given the issue seems to have receded from the landscape.

    When all’s said and done it’s a private matter between CAFC and former directors and would not really be any of our business, had RD not muddied the water and harmed prospects of a deal over the issue.

    .

  • The Directors loans have a charge over the assets, so your scenario is not possible.
    How do you know that there was a cash injection and not just capitalisation of loans?
  • Could it be €25m ESI paid so far for the club and the Valley??
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  • LeeValley said:

    The Directors loans have a charge over the assets, so your scenario is not possible.
    How do you know that there was a cash injection and not just capitalisation of loans?
    Then the goodwill would have been someone providing cash to discharge the debt outside the terms of the loan agreements before the asset transfer. So problem sorted and agree my scenario would not arise.

    The Companies House filing confirms shares can only be issued for cash. Company law on capitalisation only allows shares to be allotted from company shareholder capital reserves - normally accumulated profits. But clearly CAFC has no retained profits so reserves could only be created by an injection of cash. That cash could then be used to repay Staprix. But nothing to stop the debt being left on the balance sheet and the cash being used for any other purpose.

    Until accounts published we are speculating.
  • Dippenhall, isn't the latest submission  to CoHo allow debt to be converted to shares?
  • 7.9m views

    Onto 8m
  • Dippenhall a little knowledge is a dangerous thing.
    A straight swap of £1 debt for £1 equity would be shown as a share issue for cash.
    No need for accumulated profits.
    Why have you now started on about goodwill? 
  • As someone who ran a limited company for ten years I'd like to say that I have no idea what any of this means. Hopefully it's good news?

  • 7.9m views

    Onto 8m
    Woke up this morning feeling fine.
    I've got Charlton Life on my mind.
    Henry's got us posting the way we should, oh yeah.
    Something tells me I'm into something good.
  • JamesSeed said:
    As someone who ran a limited company for ten years I'd like to say that I have no idea what any of this means. Hopefully it's good news?

    The next two weeks are critical
  • LeeValley said:
    Dippenhall a little knowledge is a dangerous thing.
    A straight swap of £1 debt for £1 equity would be shown as a share issue for cash.
    No need for accumulated profits.
    Why have you now started on about goodwill? 
    The transaction was capitalisation which means converting shareholder funds to equity not the issue of more shares backed by the same existing capital I.e dilution. 

    The whole point of capitalisation is to award shares without diluting the value for existing shareholders. You are exchanging money, potentially distributable to shareholders in dividends, for more shares to the same shareholders. That is only possible if the shares are supported by cash, normally undistributed accumulated profits, not by issuing 21m shares backed by the same paid up share capital.

    There’s a difference between a debt being written off and a debt being repaid. If debt is written off you would not bother issuing 21m worthless shares in return, particularly where the creditor was 100% owner of the company, you would just show a reduced liability on the balance sheet and an improved net asset value. 

    If the debt is being repaid then £21m of cash needs to come from some somewhere and if the club isn’t making £21m profits can’t imagine where the cash is coming from apart from perhaps cash paid for its assets.

    The goodwill was actual goodwill in repaying the Director loans where the terms for repayment have not and could not be met in future, nothing to do with accounting goodwill on the balance sheet.
  • A bit late now but was hoping to see a few 'its happening' gifs 😉

    One last time then


    Cheers mate, 🍾🍺🍷🍹🎉🍻🥳
    Camera,glasses and Roland.
    Just to clarify LC's comment, That clip was taken from footage using spy glasses in the Stayen restaurant in August 2017 during a 20 minute discussion with Duchatelet where it was hoped he would say something libellous.
    I love this GIF but it would sound much better with Roland's impression of a strangled turkey to accompany it.
This discussion has been closed.

Roland Out Forever!