Confimred new owners of Raeding Footbal Club

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multisync1830
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Re: Buyout

by multisync1830 » 06 Jun 2014 19:11

Extended-Phenotype Wait, if we are in administration does that mean a points penalty?


The loan was taken specifically short term to avoid administration and all what that entailed. They also have an intent to buy (arse rape) if no other can be found. If my phone call was correct he is a hockey team owner.

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ZacNaloen
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Re: Buyout

by ZacNaloen » 06 Jun 2014 19:13

Pseud O'Nym
ZacNaloen He mentioned BGT at the beginning of the interview.

The lender referred to is someone else.

BGT are advising.


Surely there's little doubt that Vibrac are the lenders?



Pretty sure their name was identified when the loan was taken out


Someone on twitter is saying BGT are administrators and it's as simple as that.

It's not really as simple as that. We aren't at that stage yet.


I think it's possible to take a guess that Madejski has basically taken a loan on the value of Reading FC holdings to "the lender" to pay the tax on the understanding a sale will go through soon and everyone will be repaid.
Last edited by ZacNaloen on 06 Jun 2014 19:15, edited 2 times in total.

Norfolk Royal
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Re: Buyout

by Norfolk Royal » 06 Jun 2014 19:13

Presumably this Phoenix consortium are not the same Phoenix consortium involved in the Rover cars debacle.

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SPARTA
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Re: Buyout

by SPARTA » 06 Jun 2014 19:14

Pseud O'Nym
SPARTA So the consortium that's close to a deal is headed by Gianni Paladini. :lol: Here we go...


TBF when I watched The Four Year Plan I thought that he and Paulo Souza were the only people who seemed remotely sane, once he'd got Briatore off his back at any rate.


Certainly an interested chap - http://www.telegraph.co.uk/news/uknews/ ... point.html

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ZacNaloen
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Re: Buyout

by ZacNaloen » 06 Jun 2014 19:16

Norfolk Royal Presumably this Phoenix consortium are not the same Phoenix consortium involved in the Rover cars debacle.



First thing I googled :lol:


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yappy
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Re: Buyout

by yappy » 06 Jun 2014 19:17

The interview should be up on this link shortly:

http://www.bbc.co.uk/programmes/p01zqd0h

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Only one Trevor Morley
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Re: Buyout

by Only one Trevor Morley » 06 Jun 2014 19:28

Could someone explain to me if an external advisor is now managing the affairs of the club in what way does that constitute not being in administration?

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ZacNaloen
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Re: Buyout

by ZacNaloen » 06 Jun 2014 19:33

Only one Trevor Morley Could someone explain to me if an external advisor is now managing the affairs of the club in what way does that constitute not being in administration?



Because the company involved do all of this -

BTG Corporate Finance has built an outstanding reputation for deal origination and execution, providing proactive lead advisory services in relation to corporate transactions, including disposal planning and execution, management and institutional buy-outs and buy-ins, as well as mergers and acquisitions. The company also handles fund-raising for development capital and equity releases, financial restructuring and company reorganisations, due diligence and valuation advisory services.


They basically advise on anything that involves large amounts of cash being transacted.

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yappy
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Re: Buyout

by yappy » 06 Jun 2014 19:35

yappy The interview should be up on this link shortly:

http://www.bbc.co.uk/programmes/p01zqd0h


Up now for those interested! Starts around 5:10


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Royal Rother
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Re: Buyout

by Royal Rother » 06 Jun 2014 19:38

Uke He's no longer involved in the sale

He is involved in the purchase

That is why Oblong and CS had to resign as directors - they were no longer uninterested parties

It is also why he publically stuck the knife into the Burman bid by suggesting they would not spend (LOL after TSIs great fiscal management and broken promises)

He has changed dogs

He is the Millwall of prospective owners - no one likes him and he doesn't care (as long as there's cash)


I think that is entirely plausible.

When asked whether he has a current role at RFC he said absolutely not, but went on to be non-committal re a future role.

He was spectacularly dismissive of Burman, saying that he had met with him once but had had no subsequent contact.

He said that his black book of billionaires had enabled him to make contact with 100 potential buyers and that several firm offers had been made, all declined by the owners because they placed too high a value on the equity, i.e. £25m, when, in his opinion, it was far far less than that. He said he suspects that right now they rather wish they had taken one of those offers up.

If CS has been working his billionaires book tirelessly over the last year then that will have involved a lot of very high-powered meetings, lots of travel, high pressure - and it would seem he was successful in getting several firm offers, it would suggest he may well have been worth every penny of his £20k pm.

Having seen those offers all turned down and the club slide into more difficulty, one might appreciate why he would have changed sides.

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SPARTA
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Re: Buyout

by SPARTA » 06 Jun 2014 20:01

Assuming he can be taken at his word...

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Only one Trevor Morley
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Re: Buyout

by Only one Trevor Morley » 06 Jun 2014 20:11

All that tells me is what this company does. I still don't understand what constitutes the difference between external advisors being appointed to conduct a sale and being in administration?

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ZacNaloen
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Re: Buyout

by ZacNaloen » 06 Jun 2014 20:14

Only one Trevor Morley All that tells me is what this company does. I still don't understand what constitutes the difference between external advisors being appointed to conduct a sale and being in administration?



Companies in administration are insolvent.

We may yet find Reading fc are insolvent, but just because these guys are involved that is no reason to panic.

Considering everything else they advise in.


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Royal Rother
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Re: Buyout

by Royal Rother » 06 Jun 2014 20:27

It is often the clause in a loan arrangement that if the borrower defaults on a covenant then the lenders can call in their advisors to look after their interests.

A covenant will often cite particular financial ratios which must remain in place - breach them and it's out of your hands, the lenders can call their guys (Begbies) in if they so desire. Begbies may have looked at the finances, spoken to Samuelson (amongst others of course) seen that recent firm offers that would have seen their clients repaid had been declined (because the owners were holding out for more) and said "sod this, our clients could lose their dosh here, we're going to make sure a deal goes through pronto."

At the time the loan arrangement was drafted (a year ago by the sounds of it) Anton was still involved and apparently committed to injecting further capital so it would have looked like an extremely unlikely scenario at that point - but times have changed.

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Royal Rother
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Re: Buyout

by Royal Rother » 06 Jun 2014 20:33

But of course, I suppose it is entirely possible that they are actually perfectly happy with the cloth cutting RFC are already doing / planning, it's just that the lenders want their money back because they believe the climate is such in the Premier League that they can now command an extra 2% on the loans.

Cut throat business and all that.

£15m x 2% = £300k pa.

I guess that'd do it.

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ZacNaloen
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Re: Buyout

by ZacNaloen » 06 Jun 2014 20:35

And none of that means we are in Administration. The club is solvent, for now.

But a deal needs to happen.

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Re: Buyout

by SydenhamRoyal » 06 Jun 2014 20:59

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Schards#2 "Handing over power to the lender" is extremely disconcerting. With SJM dealing with things you know there is someone in there with the clubs best wishes at heart. With a bank, who knows.


So, those that loaned the money have the say on who takes over the ownership. Since when does a bank give a oxf*rd as long as they get their money back? They could, effectively, sell the club to anyone. Selling to an Investment Group does not make me want to run naked through Forbury Gardens in celebration.


Well that's a relief (unless you are really Mrs Zingarevich, in which case what a shame)

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Ian Royal
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Re: Buyout

by Ian Royal » 06 Jun 2014 21:09

ZacNaloen And none of that means we are in Administration. The club is solvent, for now.

But a deal needs to happen.

I think technically we're insolvent (going by that STAR report), but when you consider a large proportion of our debt (certainly until recently) was to SJM and AZ with little interest on it and no immediate call for repayment we're close enough to get away with it unless one or more of them calls in the debt.

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TheLawnMowerMan
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Re: Buyout

by TheLawnMowerMan » 06 Jun 2014 21:21

Given the amount of ignorance around this situation, I think the following links may be of benefit to some.

Administration
http://en.wikipedia.org/wiki/Administration_(law)#United_Kingdom

Insolvency
http://en.wikipedia.org/wiki/Insolvency#United_Kingdom

Although not yet mentioned (as far as I know), this may also be of interest (but hopefully not relevant):
Wrongful trading
http://en.wikipedia.org/wiki/Wrongful_trading

Knowing the difference between these is important if you want to interpret what little we know. Without this knowledge views are largely incorrect speculation.

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Re: Buyout

by EverHopeful » 06 Jun 2014 22:00

If the lender is Vibrac as most of us suspect, they should have got football creditor status surely. Even though they are offshore, I am fairly certain the club would have had to get the approval of the premier league and maybe football league to even enter into the loan. Part of the legal bits around this process also involve a legal assignment of cash receipts that if the loan defaults, then the premier league TV monies will be paid first to football creditors, so theoretically Vibrac are secured.

They may want to protect their interest by appointing BTG to act on their behalf in a sale process but guess they will get repaid so why would it be necessary? Could also be the Russians as now they have no board representation, they want somebody on the inside who can control the process on their behalf as the biggest lender and maybe that was the deal to get rid of them as directors?? Wild speculation, but plausible?

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