777 Partners / Whatever the hell you like

[Simon Buttle]

Well we don’t know for sure what the loan would be for. The amounts correlate to MSP so that’s a reasonable assumption knowing that MSP are owed at the end of the month.

BUT there’s alternative explanations: for example 150m would also be enough to bridge to the opening of the stadium (say 60m remaining construction and 90m to fund the business). At which point all debt could be refinanced against the completed stadium.

If MSP did intend to take up their equity then that would allow them to take us to the stadium opening without needing to pump in more of their own money, and the business would be no more in debt as MSP’s debt would simply be replaced. But then, there’s the question of 777s debt….

So until we know more it doesn’t rule out MSP taking over but I’d say it’s most likely to allow them to cut and run.

I have never been convinced that MSP really wanted too get involved tbh and I'm not that fussed either. Looking at their football setup it's a bit second rate.

 

[Groucho]

Does it?

Businesses enter Admin when the amount they owe is greater than the amount they can pay.

Normally.

If its used to pay off debt then great, but it could very well be to keep the lights on.

If we can just get over this hurdle things may start to feel like they’re improving.

I’m not resting too easy just yet, mind.

 

[sam17]

Distressed shop GDA Luma set to launch, anchored by billionaires Boehly, Claure

GDA Luma is the brainchild of Gabriel de Alba, who for more than 25 years has been a control/influence investor in complex, distressed and special situations deals, including as a partner with Catalyst Capital.

www.buyoutsinsider.com

Todd Boehly behind it.

How does that work, that is clearly a conflict of interest

 

[Tony’s Carp]

I have never been convinced that MSP really wanted too get involved tbh and I'm not that fussed either. Looking at their football setup it's a bit second rate.

They don’t seem to have much appetite for a controlling interest- although if they definitely don’t and never have it was a strange thing to take a security over in the first place.

We know there’s an interest in a minority stake and maybe there’s a hybrid approach if this 150m comes in- say giving them half their money back and the rest as a minority equity stake would leave the other half to complete the stadium and might suit all parties best.

 

[mccole]

 

[HalfTimeSayers]

Those “people with knowledge of the situation” get everywhere don’t they. And always seem to have not signed a confidentiality agreement.

Be plenty of credit available given the future upturn if we can get there. But the more distressed we are, the more we will pay for it, whether it’s in interest, PSR points deductions, or % of BMD.

I don’t like this really. Looks necessary but if the idea is the bridge the gap till cash generation improves, I’d have preferred the bell at the top to build said bridge with £150m of his own cash. He won’t suffer the interest cost of these desperate loans, the football company will. He will have suffered a lot financially when this all shakes out, he should add this to the pile.

 

[pfim]

Sounds like new money, not refinancing, but I guess we'll find out soon enough.

 

[Mrbluenose]

Seems to me that administration is the only way to break this perpetual impasse.

 

[windymiller]

So Moshiri loans us money at 18% interest rate?

Super stuff.

Got to get his money back somehow!

 

[Martin Alvito]

We will be in a better position to refinance all our debt when the stadium is built.

Interest rates are going to start to come down internationally in June, if there is no economic head winds we should see them continue to head south and money will get cheaper.

The situation has not changed. It remains about Prem and financial survival until the stadium is completed. The stadium won't cure all our ills, but it will add revenue and subtract interest costs.

In principle, if the asset that is the club were fairly priced it's a real investment vehicle. You can't beat 18% rate of return guaranteed from retiring debt, and refinancing what remains into actual bank loans would do work. If Moshiri can't or won't put more of his own money in (and at 18% it almost has to be can't), he should be able to see that he's best off cutting his losses sooner rather than later, and selling at a fair price.

However, he is also the person who put us in a position to pay 18% interest by spunking a bunch of money on worthless players while having no plan to build the stadium, then chased the chimera that was 777's offer. So I don't hold out much hope for him seeing reason until the lights are about to go off.

 

[kenada_blue]

Distressed shop GDA Luma set to launch, anchored by billionaires Boehly, Claure

GDA Luma is the brainchild of Gabriel de Alba, who for more than 25 years has been a control/influence investor in complex, distressed and special situations deals, including as a partner with Catalyst Capital.

www.buyoutsinsider.com

Todd Boehly behind it.

How does that work, that is clearly a conflict of interest

Boehly is a genius in this investment game IMO.

 

[Tony’s Carp]

Sounds like new money, not refinancing, but I guess we'll find out soon enough.

I mean, the plus is 150m would probably get us to the stadium both in terms of construction and funding the club.

But adding to the pile of debt would surely significant deals with the existing creditors? Wouldn’t it almost require MSP to take up their equity in lieu of their repayment?

 

[Tony’s Carp]

Seems to me that administration is the only way to break this perpetual impasse.

Calm down, Paul.

 

[MikeH72]

Seems to me that administration is the only way to break this perpetual impasse.

Why on earth does it seem like that?

 

[Lobworm]

Seems to me that administration is the only way to break this perpetual impasse.

Really? Isn't it more likely a simple case of restructuring? An old skool "Consolidate all your debts into one affordable monthly payment" type thing?