New Everton Owners: The Friedkin Group

[catcherintherye]

So nothing really to worry about if TFG are willing to repay the loan, I interpret that as what was loaned to Everton and the judge will decide how it’s paid.

This shouldn’t impact the TFG takeover

It won't.

 

[Neiler]

It won't.

Why do you think it won’t mate?

Don’t mean that as taking up a position to argue - just an honest question!

 

[Damo_1878]

So nothing really to worry about if TFG are willing to repay the loan, I interpret that as what was loaned to Everton and the judge will decide how it’s paid.

This shouldn’t impact the TFG takeover

It's not a "worry" it's about getting a good result for TFG which then is good for EFC. Noting that it's alleged Leadenhall were victims of a crime. It's not their fault they've had to bring this action

It's a timing and how much resource TFG have to give to resolve this issue. A hurdle.

One we should monitor

It's not something people should stress themselves on like you sometimes see on here. But it is something that needs sorting out. It could impact TFG investment plans in terms of how much capital they can initially put in. Or not. But they know that better than anyone

I'm not ignoring it because as I said to @billypatrick yesterday. I'm particularly interested in the business strategy Friedkin Group will employ at Everton

 

[Damo_1878]

Presuming ACAP didn’t agree to a haircut - none of us know that for certain.

We do know details of the deal. It wasn't a cash only repayment. It was part cash and partly involved converting a proportion to notes that could be converted to equity later by ACAP or "another"

So fell into a "fair value" dispute. That's my understanding without reading absolutely everything in detail. I've not read what the judge has said in the 58 page document.

 

[catcherintherye]

Why do you think it won’t mate?

Don’t mean that as taking up a position to argue - just an honest question!

I think the worst case scenario is priced in by TFG. Which would be, they have to pay it back, with a potential mixture of cash/equity stuff.

Leadenhall seem comfortable with the takeover. Why wouldn't they be, it's their best chance to get some/most back.

 

[catcherintherye]

Why do you think it won’t mate?

Don’t mean that as taking up a position to argue - just an honest question!

Id also add, there are advantages in turning some into equity, from a gap accounting standpoint too. Which is a bit of a quirk of how all this works. It's preferable to be constituted in such a way that it can sit on the balance sheet that way.

 

[Neiler]

I think the worst case scenario is priced in by TFG. Which would be, they have to pay it back, with a potential mixture of cash/equity stuff.

Leadenhall seem comfortable with the takeover. Why wouldn't they be, it's their best chance to get some/most back.

We do know details of the deal. It wasn't a cash only repayment. It was part cash and partly involved converting a proportion to notes that could be converted to equity later by ACAP or "another"

So fell into a "fair value" dispute. That's my understanding without reading absolutely everything in detail. I've not read what the judge has said in the 58 page document.

I’ve always suspected ACAP and TFG negotiated a hair cut. Whether that was reduced repayment or in structure of capital and equity or both - I really don’t know - what that part of the deal is - you lads seem more clued in on that than me.

So I’ll defer, to greater knowledge!

Won’t lie this has me on alert, but that may be my Everton P.T.S.D.

Next filing is next Thurs!

 

[Dublin blue 75]

I think the worst case scenario is priced in by TFG. Which would be, they have to pay it back, with a potential mixture of cash/equity stuff.

Leadenhall seem comfortable with the takeover. Why wouldn't they be, it's their best chance to get some/most back.

The Leadenhall entity that leant the funding to 777 is an Irish domiciled investment fund and has monthly liquidity (if you are lucky enough to have the funding to meet the minimum subscription requirements). The 777 issue on that funds portfolio has been around for nearly a year at this stage so they will have marked it down given accounting policies they have to adhere to.

It’s a certainty that TFG have agreed a settlement value somewhere below par where the reported 200m loan will likely be settled by TFG for something below 200m but higher than whatever the current book value is that Leadenhall have written it down to. It’s been agreed between the stakeholders and we move on. Thank you very much to TFG.

 

[Damo_1878]

I’ve always suspected ACAP and TFG negotiated a hair cut. Whether that was in structure of capital and equity - I really don’t know, what that part of the deal is - you lads seem more clued on that in than me.

So I’ll defer.

Next filing un next Thurs!

I agree. Unpicking it all is almost a full time job, I've been busy myself today with my own stuff.

The Paul Brown thread was useful. I don't know what it is but instantly some people immediately think what he's posting is about "THE DEALS OFF" type of post. It clearly isn't and he didn't even remotely imply it.

It's a timing and resource thing for TFG/EFC. Why it's worth watching.

 

[catcherintherye]

The Leadenhall entity that leant the funding to 777 is an Irish domiciled investment fund and has monthly liquidity (if you are lucky enough to have the funding to meet the minimum subscription requirements). The 777 issue on that funds portfolio has been around for nearly a year at this stage so they will have marked it down given accounting policies they have to adhere to.

It’s a certainty that TFG have agreed a settlement value somewhere below par where the reported 200m loan will likely be settled by TFG for something below 200m but higher than whatever the current book value is that Leadenhall have written it down to. It’s been agreed between the stakeholders and we move on. Thank you very much to TFG.

I suspect an agreement is in place either way, and TFG/Leadenhall are comfortable with it.

 

[Damo_1878]

The Leadenhall entity that leant the funding to 777 is an Irish domiciled investment fund and has monthly liquidity (if you are lucky enough to have the funding to meet the minimum subscription requirements). The 777 issue on that funds portfolio has been around for nearly a year at this stage so they will have marked it down given accounting policies they have to adhere to.

It’s a certainty that TFG have agreed a settlement value somewhere below par where the reported 200m loan will likely be settled by TFG for something below 200m but higher than whatever the current book value is that Leadenhall have written it down to. It’s been agreed between the stakeholders and we move on. Thank you very much to TFG.

I suspect an agreement is in place either way, and TFG/Leadenhall are comfortable with it.

It is still subject to the New York Southern District Court approval however because of the injunction that prohibits ACAP from making such deals.

Whilst TFG and ACAP may be "comfortable" with it, Leadenhall may not be as a they have to seek maximum reimbursement and/or compensation for their shareholders. It's the Court that will decide

Again, this isn't going to stop the TFG-EFC acquisition but it can impact short term resources that can be input into EFC by TFG. Plus take time.

 

[catcherintherye]

It is still subject to the New York Southern District Court approval however because of the injunction that prohibits ACAP from making such deals.

Whilst TFG and ACAP may be "comfortable" with it, Leadenhall may not be as a they have to seek maximum reimbursement and/or compensation for their shareholders. It's the Court that will decide

Again, this isn't going to stop the TFG-EFC acquisition but it can impact short term resources that can be input into EFC by TFG. Plus take time.

I don't think it's going to have much impact short term on what can/can't be put in. They've stuck in another huge chunk of change.

Frankly, from a cash position the business is very well capitalised. There isn't a huge need for funding.

If there were TFG will do so, and have probably factored having to resolve the Leadenhall situation.

 

[Frenk]

It's not a "worry" it's about getting a good result for TFG which then is good for EFC. Noting that it's alleged Leadenhall were victims of a crime. It's not their fault they've had to bring this action

It's a timing and how much resource TFG have to give to resolve this issue. A hurdle.

One we should monitor

It's not something people should stress themselves on like you sometimes see on here. But it is something that needs sorting out. It could impact TFG investment plans in terms of how much capital they can initially put in. Or not. But they know that better than anyone

I'm not ignoring it because as I said to @billypatrick yesterday. I'm particularly interested in the business strategy Friedkin Group will employ at Everton

And obviously an alleged crime that Everton knew nothing about. So you would think it would be something that would not be allowed to damage us.

 

[Damo_1878]

I don't think it's going to have much impact short term on what can/can't be put in. They've stuck in another huge chunk of change.

Frankly, from a cash position the business is very well capitalised. There isn't a huge need for funding.

If there were TFG will do so, and have probably factored having to resolve the Leadenhall situation.

I don't believe that we are "well capitalised" or we certainly were not without The Friedkin Group due to them having to provide "operational and stadium" funding ... which I won't repeat but was in the tens of millions.

You have some posters saying we need a "huge influx" of players. So capital is important and every penny matters.

We shouldn't be blasé about it

We shouldn't be blasé about money any time. Theres' been too much of that attitude at Everton Football Club over the past years.

And obviously an alleged crime that Everton knew nothing about. So you would think it would be something that would not be allowed to damage us.

It impacts EFC indirectly, because the loan was taken from the party that has allegedly committed a crime.

As the saying goes. "if you lie down with dogs, you get up with fleas"

 

[catcherintherye]

I don't believe that we are "well capitalised" or we certainly were not without The Friedkin Group due to them having to provide "operational and stadium" funding ... which I won't repeat but was in the tens of millions.

You have some posters saying we need a "huge influx" of players. So capital is important and every penny matters.

We shouldn't be blasé about it

We shouldn't be blasé about money any time. Theres' been too much of that attitude at Everton Football Club over the past years.



It impacts EFC indirectly, because the loan was taken from the party that has allegedly committed a crime.

As the saying goes. "if you lie down with dogs, you get up with fleas"

I mean I didn't say were, I said are. We were reasonably well capitalised, we are now in a strong cash position, relatively speaking. Doubly so if RMF has been cleared.

There is money available to spend on January of we wish. That's before TFG having to put anymore in