The Friedkin Group reaches agreement to buy Everton

[Joey66]

My reading of the press reports is that until the litigation has been determined we don't know what the obligation is with regard to the 777 investment

They could all end up in jail .... would you want to be involved in a lawsuit with them as you are in the USA?

 

[Lobworm]

Maybe there's no need to panic (yet).

I spotted that. It sounds fairly plausible and definitely non knee jerk. There's also precedent in that this same group apparently pulled out pf the Roma bid at one point, only to purchase later.

 

[Lob]

777 still haunting us. Another really poor Moshiri decision that continues to hurt the club. Would imagine todays events will scare other interested buyers away too. Well done Mosh and thanks for the never ending doom under your ownership.

 

[Dr Baxter]

Hmm, interesting

Not on a wind up. That is what I was told about an hour ago. Sorry, I cannot name source. Whether they are correct or just being optimistic about things, time will tell. They may not know any more than us.

 

[DanB90]

AS Roma Hires Goldman Sachs To Find Buyer After Deal With Friedkin Collapses

James Pallotta hired the investment bank after the $850 million sale fell through.

www.forbes.com

They have done this before it seems..

Like a multi-billion £ game of peekaboo.

 

[pfim]

This last post by @Billy Dean includes what i have stated in this thread a few times.

TFG could simply pay the 777 loan off. It really is that simple.

They did not want to do so. They wanted to restructure it when the stadium is built.

So for the sake of 6-12months and finishing off the stadium they have pulled out.

The club with the stadium will be worth £1bil+ so they saw a chance to pickup the club with £200mil.

Certainly looks like they would have been more focused on Roma based on their willingness to pay their debts off as opposed to only paying a far smaller chunk of ours.

Bullet dodged.

Again, that's an opinion and doesn't seem to be shared with the potential bidders of the club. They don't want to pay off the loan in full because they don't believe the club is worth that much.

 

[Bluebirdie]

Oh well, back on Ebay we go.

But who's gonna Pay pal?

 

[Exeter_Gently]

Someone bell Textor again.

 

[Zatara]

Seems funny that the R and M loan stopped MSP from buying the club and now the 777 debt that ACAP have taken on is now the problem this time. I can see ACAP being an arse over the debt as they wanted to buy the club so I could well see them actively wanting to stop the sale.

Neither MSP or TFG wanted to inject more than £200mil into the club. If they had injected £400mil 777 would be paid off.

Its pathetic from TFG who could have done that and then been paid back once the stadium is built and debt restructured.

In Layman’s terms;

Everton owe 777 $200m.

777 owe A-CAP* $200m, funnelled through a bond called ‘777-600’.

A-CAP have sold the bond ‘777-600’ to JPMorgan for $88.5m.

Therefore, indirectly, Everton will now owe JPMorgan $200m.

JPMorgan could at any moment call that loan in, meaning whoever owns Everton will need to have $200m cash to pay this should JPMorgan demand it to be paid.

Unless Moshiri uses his own personal funds to pay the bill, asset stripping/administration would be likely.

*A-CAP were found to be almost the sole providers of funding for 777. American courts in Utah and South Carolina ordered a reduction in this funding due to conflict of interest, hence the quick dumping of the bond ‘777-600’ for a hefty loss.

Spot on apart from the debt being called in at any time. We dont know the contract.

Fact is TFG didnt want to pay off 777.

No further investment was ever intended from them.

JPMorgan having bought the bond, doesn't change the terms of the original loan agreement.

You can only call it in at "any moment" if the terms are breached.

Yes correct.

AS Roma Hires Goldman Sachs To Find Buyer After Deal With Friedkin Collapses

James Pallotta hired the investment bank after the $850 million sale fell through.

www.forbes.com

They have done this before it seems..

They wanted to obtain a £1bil asset for £200mil

 

[LocalNative]

This could be them hankering to change Moshiri’s valuation of the club.

Maybe unlikely, but I could see an instance where they return to the table if Moshiri accepts less for his shares.

 

[atrottel]

I imagine (like everyone else commenting!) that the reasons for Friedkin pulling out are as follows:
i) the legal process makes it impossible for them to agree a "debt haircut" with 777/ACap/their eventual creditors
ii) given that, other debt holders are also unlikely to agree to any reductions until the situation is clearer with the above
iii) the only way a takeover makes sense is a debt restructuring (meaning people don't get back what they lent but agree because they are frightened they might get less)
iv) but, given i) and ii) above, it becomes impossible to restructure the debt until things are settled in the courts

I also am slowly coming around to Mr GOT's idea that there is a definite delaying tactic going on from the side of Moshiri/whoever (maybe with an eye on elections in a certain country).

 

[Ragnar]

This last post by @Billy Dean includes what i have stated in this thread a few times.

TFG could simply pay the 777 loan off. It really is that simple.

They did not want to do so. They wanted to restructure it when the stadium is built.

So for the sake of 6-12months and finishing off the stadium they have pulled out.

The club with the stadium will be worth £1bil+ so they saw a chance to pickup the club with £200mil.

Certainly looks like they would have been more focused on Roma based on their willingness to pay their debts off as opposed to only paying a far smaller chunk of ours.

Bullet dodged.

Exactly. I just don’t understand how there isn’t a line of billionaires wanting to buy us. You give Moshiri his 50mil, you pay the 70mil to finish stadium, and you clear the 350mil debts. It’s costs you around 500mil and then you own a debt free club, with a brand new stadium all worth (like you said) a billion.

 

[pfim]

They wanted to obtain a £1bil asset for £200mil

No. I mean, no? What? That supposed $1 Billion asset comes with a boat load of debt.

 

[Mrk]

This could be them hankering to change Moshiri’s valuation of the club.

Maybe unlikely, but I could see an instance where they return to the table if Moshiri accepts less for his shares.

But his valuation of his shares appears to be something in the region of £25-50m, a tiny amount of money in comparison to how much it will take to recapitalise us and pay off our debt. Maybe they want to give him nothing, but seems like a drastic move for what is such a relatively small amount of money.

 

[Igrok]

They got evertoned..