Latest Update from Kris

5 hours ago, Almat said:

I know I know. It's very probably rounduns but Tepper? Yes please. 

 

Hope they’re nothing t’do wi t’Panthers-they suck!

6 hours ago, Bahrain Owl said:

The administrator is not bound to award the deal to the highest bidder. They are morally bound (and legally according to UK insolvency law) to award to the best outcome for the creditors.

I dont know why people keep going on about the highest bid deal. It simply does not work like that.

 

In what scenario would the highest bidder not be the best outcome for the creditors?

Just now, Jaybako said:

In what scenario would the highest bidder not be the best outcome for the creditors?

You're 5 hours late on that question.

5 hours ago, Almat said:

I know I know. It's very probably rounduns but Tepper? Yes please. 

 

Well there's a link between tepper and Wednesday, didn't his MLS ride employ Dean Smith at one point?

5 minutes ago, Mr Grey Man said:

You're 5 hours late on that question.

I realised that 5 mins ago as I kept working my way through the thread

2 minutes ago, Jaybako said:

I realised that 5 mins ago as I kept working my way through the thread

Summat to do with lottery tickets or summat, can't remember.

11 hours ago, McRightSide said:

Im well aware, thanks 

You are... but many folks on here aren't.

5 hours ago, Jaybako said:

In what scenario would the highest bidder not be the best outcome for the creditors?

My small family business in the construction industry has had about 4nr companies go insolvent through Begbies... The last company owed us circa £65K, which in football terms is nothing but in small family company terms (4nr Employees) is a lot of money... Anyway the company that owed us money paid off their covid loans and the remainder to another company the director owned... After that anything left was swallowed up by Begbies investigating - until gone.... Prior to that we had a construction company go insolvent owing circa £42K... That time there was circa £100K after secured debtors etc.. Begbies then used that £100K to pay a Quantity Surveyor to investigate the money owed, but we never got the final report as again funds run out... Anyway I just wanted to say that I've not had good experiences with Begbies so far at work - so 3rd time lucky?!? 

5 hours ago, Jaybako said:

In what scenario would the highest bidder not be the best outcome for the creditors?

Option 1

OTB - 30m; 20m now, 5m end of 25/26 season and 5m start of 26/27 season. POF of 50m shown. No proof of contingency thereafter

Option 2

OTB 27m, 20m now, 3.5m end of 25/26 season and 3.5m start of 26/27 season. POF of 50m shown, clear contingency shown at bid stage.

Which one would you choose.

This is business not football.

It is not about enlightening the hearts of people on the terraces. The OA must decide what is best for the creditors. It means they are constantly talking to the creditors on a "what if...." or "Here is the best offer...." (not the highest) basis. 

I believe ALL creditors must agree to the best offer submitted. If any one of the creditors does not agree, the OA goes back into the bidders.

This can go on for some time of course depending on the cooperation of the creditors. Eventually, if no deal is reached, an authority will declare bankruptcy, meaning liquidation (if there is more than 1 creditor claiming).

Such claims must have been made prior to administration. 

A creditor is not allowed to issue a summons on debt during administration. 

But as I said before, I deal with industrial assets not football clubs. However I believe the clothes horse is the same.

A statement from the administrator would indeed clarify this topic.

I would certainly be intrigued to know if the normal process is different for distressed football clubs.

11 hours ago, prowl said:

"to negotiate the best outcome for company creditors. This may be achieved by saving viable elements of the business, or otherwise enhancing returns for outstanding creditors."

 

Guess where that came from?

 

It is all about enhancing returns for creditors. Any saving of viable elements of the business is only done in the interests of getting a better return for CREDITORS. There's nothing about getting the best outcome for the on going business.

 

Oh, by the way that is a quote from Begbies website.

Exactly what I have been saying for the last 4 or 5 weeks.

12 hours ago, Mr Grey Man said:

So the creditors, ie "him" still do have a say in how this plays out then.

Yes, if "him" doesn't accept any offer, some legal authority ( EFL?) would declare bankruptcy and the liquidation process would start where the assets of the company would be disposed. SWFC would cease to exist.

Obviously the administrator is hired to avoid this scenario.

42 minutes ago, Bahrain Owl said:

Yes, if "him" doesn't accept any offer, some legal authority ( EFL?) would declare bankruptcy and the liquidation process would start where the assets of the company would be disposed. SWFC would cease to exist.

Obviously the administrator is hired to avoid this scenario.

Excuse me if I'm a bit thick, but what benefit would the debtor get from doing that unless the liquidation would raise more funds than the deal agreed?

Which in this case it certainly wouldn't given that we understand offers of 30 million are on the table?

1 minute ago, Plonk said:

Excuse me if I'm a bit thick, but what benefit would the debtor get from doing that unless the liquidation would raise more funds than the deal agreed?

Which in this case it certainly wouldn't given that we understand offers of 30 million are on the table?

It's not necessarily about the 30m (or any amount) on offer. If a creditor does not accept their share of the £XXm (for whatever reason), someone, somewhere will bang a gavel and rule out. 

We can have £60m on the table, it doesn't mean to say that a deal will be done. 

Chansiri is the company's biggest creditor. It could get messy.

Here we are in the hands of the administrator 

12 hours ago, Kevan said:

I imagine that the Administrators can negotiate with the "lower " bidders to see if they wish to raise their bid.  If for example they think one of the lower bidders has submitted a more attractive business plan for the club going forward, they could ask if tge want to better the highest bid.  If they don't want to do that, then the current highest bidder would be chosen.

 

I guess all that negotiation is happening now.

That's exactly what the Administrators can/will do.

5 hours ago, Tollertonowl said:

My small family business in the construction industry has had about 4nr companies go insolvent through Begbies... The last company owed us circa £65K, which in football terms is nothing but in small family company terms (4nr Employees) is a lot of money... Anyway the company that owed us money paid off their covid loans and the remainder to another company the director owned... After that anything left was swallowed up by Begbies investigating - until gone.... Prior to that we had a construction company go insolvent owing circa £42K... That time there was circa £100K after secured debtors etc.. Begbies then used that £100K to pay a Quantity Surveyor to investigate the money owed, but we never got the final report as again funds run out... Anyway I just wanted to say that I've not had good experiences with Begbies so far at work - so 3rd time lucky?!? 

5 hours ago, Bahrain Owl said:

Option 1

OTB - 30m; 20m now, 5m end of 25/26 season and 5m start of 26/27 season. POF of 50m shown. No proof of contingency thereafter

Option 2

OTB 27m, 20m now, 3.5m end of 25/26 season and 3.5m start of 26/27 season. POF of 50m shown, clear contingency shown at bid stage.

Which one would you choose.

This is business not football.

It is not about enlightening the hearts of people on the terraces. The OA must decide what is best for the creditors. It means they are constantly talking to the creditors on a "what if...." or "Here is the best offer...." (not the highest) basis. 

I believe ALL creditors must agree to the best offer submitted. If any one of the creditors does not agree, the OA goes back into the bidders.

This can go on for some time of course depending on the cooperation of the creditors. Eventually, if no deal is reached, an authority will declare bankruptcy, meaning liquidation (if there is more than 1 creditor claiming).

Such claims must have been made prior to administration. 

A creditor is not allowed to issue a summons on debt during administration. 

But as I said before, I deal with industrial assets not football clubs. However I believe the clothes horse is the same.

A statement from the administrator would indeed clarify this topic.

I would certainly be intrigued to know if the normal process is different for distressed football clubs.

All the above are fair points, and ones I totally accept, but I guess my original question, and the premise I’ve been basing my thinking on all along, is wether we will actually dealing with bids that will be in phased payments? Small failing businesses  being bought by new small owners, yes, sure. But people with multi billion dollar wealth? 
I haven’t got a single seconds experience in the business / admin / business takeovers, but I’m hoping that a billionaire / consortium won’t have the need to piece meal their purchase total over 3 or 4 years? 
But, as I say, that might be common practice, I have no idea.