777 Partners / Whatever the hell you like

[Tony’s Carp]

Doesn’t he go the match?!

No but he makes sure to tweet something like “COME ON YOU BLUES!!!!” before every match so no one thinks he’s an especially elaborate kopite troll.

 

[Rudolf Hucker]

Didn’t Leicester build their stadium, then dissolve themselves & reopen, leaving all their debts unpaid?

 

[Exeter_Gently]

Where have you heard that they’re taking over, out of interest?

Everytime...ha

 

[MikeH72]

Everytime...ha

Thought you had some new developing info ffs

 

[Exeter_Gently]

Didn’t Leicester build their stadium, then dissolve themselves & reopen, leaving all their debts unpaid?

Dissolve themselves in acid?

 

[Exeter_Gently]

Thought you had some new developing info ffs

Unfortunately not,my sweet ha.

 

[Kevsleftpeg]

I know i must sound like a broken record but anyone who thinks that going into administration is an option is a complete and utter tosser to be blunt. Forget about the 9 point deduction because it wouldn't even be the worst factor. How many business do you know that successfully come out of administration? I don't know any. 90% of them fail and some of them are in administration for several years before failing.

There is nothing worse for us than administration, It would be the end of Everton football club.

Lots and lots come out of pre-packed administrations. It a very common restructuring technique for a business that is fundamentally sound but overleveraged (not saying that it would work for Everton though).

 

[b-rad]

Didn’t Leicester build their stadium, then dissolve themselves & reopen, leaving all their debts unpaid?

Birse writes off £5.5m as Leicester City goes broke

Contractor gives up on final payment for £27.5m stadium after football club calls in administrators.

www.building.co.uk

 

[Moomin]

No but he makes sure to tweet something like “COME ON YOU BLUES!!!!” before every match so no one thinks he’s an especially elaborate kopite troll.

A load of people on here used to worship every word he posted on here back in the day.

I used to call them the Eskimoes. They have all turned on him now.

 

[Kevsleftpeg]

Haha what directors ?

Moshiri is in charge of everything money wise , so he & only he can decide that no matter floating charges are mooted .
If he doesn't want that to happen he has the resources to not let it happen.

The secured creditors control everything if we breach the terms of our loans, they have all of the leverage and the directors should really be running the company now in the best interests of creditors rather than shareholders if our financial situation is that bad otherwise they run the rishi of being in breach of their director's duties and open themselves up to criminal and civil liability (the advisor we called in will be advising the directors on those matters). I'm a finance partner at a global law firm.

 

[davids]

When you make an investment you look at the longer term. They will assess the risk of admin getting it all cheaper, for what it'll all be worth when recovered. We will go through the pain, and they will ultimately reap their reward. Its a money game now, not a football club.

Let's hope they look at the clubs who dropped out of the Prem many seasons ago and haven't got back.

 

[Kevsleftpeg]

Esk’s assumption seems to be that a new buyer would be happy to see the entire business gutted, stripped of all its assets, and left drifting into the sporting wilderness for years to come, just to save a few bob on the purchase price. He describes this as sensible.

Obviously the purchase price would be cheaper because what you’d be buying would be in tatters with all the half decent assets out the door. The only would-be investors that surely would want that are ones who can’t afford the club otherwise (his mates?). It’s their only chance to get their hands on the club.

Any investor with the actual means to acquire the club would surely want to do so and at least control the restructuring rather than have the gutting carried out by people with no concern for the long term business.

Sorry, but it is an absolute disgrace that a supposed Evertonian is fuelling all this in the media when the only real beneficiaries would be the worst of vultures. A disgrace.

I'd assume that the investor would buy all of the assets of the business (i.e. the stadiums, tha player contracts etc) transfer them all to a new company which is free of debt and the proceeds of the sale would be used to repay the existing secured creditors. The club would then just continue in exactly the same way as before but with a completely restructured balance sheet. I don't know if that works from a premier league perspective (i.e. is it the club/brand that competes or the existing company in terms of continuity) but that how this sort of deal would be broadly structured. Pre-packed administrations where a company enters admin. and then the administrators sell all of its assets to a newco on the same day is a very common restructuring technique.

 

[Connor]

Will wait for Juan Mata and Axel Witsel to be running our midfield, while Unai Emery stands on the sidelines, before ever taking The Esk seriously

 

[Librarian]

 

[Kevsleftpeg]

So, forgive the ignorance here, under what circumstances would the directors put a company into administration?

It provides a moratorium on creditors making the company insolvent so it effectively gives a company a chance to trade through a difficult period without existing creditors sending it under in the hope that creditors get a better return at the end of the administration or the company returns to financial health. There are statutory purposes that must be achievable and the IP (insolvency practitioner) won't accept the appointment unless they are achievable and they will be kept under constant review. The directors can't just do it for a jolly.