current state of play

[lebowski]

a lot has happened lately and i'm struggling to keep up, so let me get this clear in my head (please correct me if i'm wrong anywhere):

we can't re-negotiate the CVA because it has to be paid in full, and we can't pay it in full because the board don't have any money. the takeover hangs in the balance whilst a court case takes place and in the meantime the nucleus of our squad for next season wasn't good enough for this league 2 season's ago, and anyway, given the above we'll probably start on -10 points anyway. that is assuming the club makes it that far.

we're fucked aren't we?

really, and i guess i'm asking the trust people here, if the board dropped their swords now and cleared their desks, is there any realistic chance whatsoever of the consortium being in place to pay the CVA before the deadline?

how does everyone else see things progressing from here? am i painting an unnecessarily bleak picture in my mind here?

[Fred Elliot]

Lebowski

The CVA can be renegotiated, but it takes a specially convened creditors meeting, where 75% of the creditors (by value of debt owing, not numerically) need to approve the move. So far no meeting has been convened and , one of the largest creditors, SBC, have stated that they WILL NOT renegotiate.

If the board took the decision tomorrow to clear the decks so to speak then whilst the legalities of any take over would take us past the deadline, if creditors and the FL were aware of the rescue package/takeover deal then I am sure that with clear and concise negotiation that a period of grace would be extended to us to produce the relevant payments etc.

Hope that helps.

I certainly dont see us as fucked at all, quite the contrary.

I have said in other threads that no High Court judge will liquidate a company that has a viable rescue package to satisfy the creditors ready to implement, be it hostile or non-hostile

This is where (in my opinion only) that AA's proffessional integrity comes into question.

I have spoken to many proffessionals about the situation and I am staggered that AA is not recommending the Consortiums offer to the club, as it is his duty to look after the interests of the creditors within the agreement.

To swipe this to one side without such a "by your leave", is in my opinion bordering on negligence and I am surprised that creditors have not kicked up a stink thus far

[Simon Pieman]

Although the football league could take exception to it. I wouldn't mind betting we're made an example of, should the worst happen.

[SwindonTartanArmy]

Although the football league could take exception to it. I wouldn't mind betting we're made an example of, should the worst happen.

and not for the first time either! :evil:

[RobertT]

quite, which club would have the balls or stupidity to meddle with CVA's and Admin etc just after the FL got all shown up by Leeds and Boston playing with their rules.

[Reg Smeeton]

quite, which club would have the balls or stupidity to meddle with CVA's and Admin etc just after the FL got all shown up by Leeds and Boston playing with their rules.

   

[Ardiles]

The most puzzling aspect to the events of the last few days is that Andronukou has not issued a rebuttal to Nick Martin's (Swindon Councillor) statement that Swindon Borough Council, as a major CVA creditor, expects payment in full of its debts in 11 days' time. This directly contradicts Andronikou himself.

The good news is that this is all now coming to a head. The board can only bullshit the fans for so long. I appreciate that this is all happening at the 11th hour, but they are now very publicly being found out. Unless they actually do produce a 7 figure investor within the next 11 days, it's all about to fall apart for them. You just have to hope there will be others there to catch the pieces.

[reeves4england]

The most puzzling aspect to the events of the last few days is that Andronukou has not issued a rebuttal to Nick Martin's (Swindon Councillor) statement that Swindon Borough Council, as a major CVA creditor, expects payment in full of its debts in 11 days' time. This directly contradicts Andronikou himself.

The good news is that this is all now coming to a head. The board can only bullshit the fans for so long. I appreciate that this is all happening at the 11th hour, but they are now very publicly being found out. Unless they actually do produce a 7 figure investor within the next 11 days, it's all about to fall apart for them. You just have to hope there will be others there to catch the pieces.

Agree with all that, by the end of next week a lot may well have happened. My concern is the same as yours - if no investment does come in, will the club be ok? The board will either have to find the cash or give in. I'm not sure they are capable and/or willing to do either, and its STFC that will suffer

[Iffy's Onion Bhaji]

just out of interest, does anyone know what percentage SBC are of the creditors? the reason i ask this is because (as Fred as mentioned) this goes to a vote of the creditors for the CVA to be renegotiated then they would need 75% of creditors backing them. as far as we are aware the only creditors standing in the way of a renegotiation are SBC. would that not effect the outcome of such a vote if SBC accounted for less than 25% of the creditors?

[Samdy Gray]

Going on the original debt, SBC are owed £411,998.39 out of a total £1.6 million, so about 25%.

[Iffy's Onion Bhaji]

Going on the original debt, SBC are owed £411,998.39 out of a total £1.6 million, so about 25%.

so touch and go then. but all the other creditors would have to agree to such a deal

[Samdy Gray]

Don't forget HMRC are owed about £900,000, so combined with SBC that's about 82%.

I don't think HMRC would take too lightly to renegotiating.

[Iffy's Onion Bhaji]

Don't forget HMRC are owed about £900,000, so combined with SBC that's about 82%.

I don't think HMRC would take too lightly to renegotiating.

of yes of course. and no they won't. so that's that option out of the window then. so it basically comes down to whether we can afford it or not doesn't it? and we can't  

[ahounsell]

The £900,000 owed to HMRC is on top of the £1.6 million owed to trade creditors. Back in 2002 crown debts were protected which is why they are being paid in full wihle the rest (including SBC) get 24p in the £.

We (The Trust) have taken advice from an insolvency expert on this precise question. The vote would be based on the full amounts owed less any amounts paid out to date, which means HMRC are down to just over 500,000 out of a total of roughly £2.1 million.

HMRC would be close to the 25% on their own, the council around 20%. Both together would certainly carry enough weight to block any vote.

[ronnie21]

Don't forget HMRC are owed about £900,000, so combined with SBC that's about 82%.

I don't think HMRC would take too lightly to renegotiating.

And I believe Vodaphone are owed 19p!!