The Friedkin Group reaches agreement to buy Everton

[brieverton]

It's also problematic that Moshiri remains a director, along with representing poor corporate governance and a potential conflict of interest between his and the company's interests.

If we look at the three tranches of debt - 777/A-Cap, TFG, and RMF, then it's the latter that is the issue, £200m + on 10.25% interest.

This gets little to no attention. Supposedly the club took advice regarding restructuring some months ago, from Teneo, I believe. I wonder what came of it. Both RMF and TFG loans are senior to 777/A-Cap so I believe. Has any attempt been made to restructure the RMF debt (considering Moshiri on the board may be problematic to such attempts)? Friedkin has security over BMD and in a settlement may still be converting his loan to equity. The subordinated creditor, whomever that is shown to be, could not object in that scenario, or would this also be subject to the Leadenhall injunction?

If the directors as a group were to conclude that this restructuring should be pursued, could an attempt proceed? Each director has a fiduciary duty to persue the companys interest. Every day we go without a full board hurts the club in a really penal way. If a takeover is going to be held up it does not mean the club has to continue to operate in a semi comatose manner.

 

[BainesontoastNEW]

What's happened to Bordeaux today has scared the sh** out of me, to be honest.

 

[Goat]

What's happened to Bordeaux today has scared the sh** out of me, to be honest.

Thankfully we dont play in France or Scotland, so what happened to them and Rangers cant happen to us.

 

[TommyDavo]

Some essays getting written in here

 

[Bedfordblue]

Can someone explain in simple terms why the 777 / ACap loan is such a problem it would cause Texan Dan to metaphorically poop his kecks?
I’m no high faultin’ finance bro, but surely it’s pretty clear who the money has to be repaid to?
1. presumably were making payments on it currently - so where are they going?
2. If it’s that murky, don’t pay anyone any of it until a court says who it’s owed to.

Seems a bit of red herring to me. If he’s got the £200m (+ the rest) and was prepared to pay it off then I can’t see what the problem is.
If it’s more to do with the over all cost and not agreeing with the overall value to buy, then that’s a different issue all together.

 

[matty1878]

Can someone explain in simple terms why the 777 / ACap loan is such a problem it would cause Texan Dan to metaphorically poop his kecks?
I’m no high faultin’ finance bro, but surely it’s pretty clear who the money has to be repaid to?
1. presumably were making payments on it currently - so where are they going?
2. If it’s that murky, don’t pay anyone any of it until a court says who it’s owed to.

Seems a bit of red herring to me. If he’s got the £200m (+ the rest) and was prepared to pay it off then I can’t see what the problem is.
If it’s more to do with the over all cost and not agreeing with the overall value to buy, then that’s a different issue all together.

is baffled me - why lash 200 mill

and leg it

he’s got billions of money

 

[Joey66]

is baffled me - why lash 200 mill

and leg it

he’s got billions of money

Litigation he does not want his company dragged via the courts via 777 - he asked the Mosh to pay an identity insurance to avoid this chance & the Mosh refused ... hence deal off

 

[matty1878]

Litigation he does not want his company dragged via the courts via 777 - he asked the Mosh to pay an identity insurance to avoid this chance & the Mosh refused ... hence deal off

so moshiri again stopping a sale

so again why pay 200 mil?

 

[jazzy]

Litigation he does not want his company dragged via the courts via 777 - he asked the Mosh to pay an identity insurance to avoid this chance & the Mosh refused ... hence deal off

Is that true Joey or a guess on your part?

 

[LocalNative]

Thankfully we dont play in France or Scotland, so what happened to them and Rangers cant happen to us.

Really? I didn’t actually know that. Is our max punishment for administration then just a hefty points deduction (and likely relegation)?

The only outcome I see now in the absence of 777’s dodgy funding being sorted is administration and sold off for a nominal amount.

 

[LocalNative]

is baffled me - why lash 200 mill

and leg it

he’s got billions of money

Because that 200 mil becomes a high interest loan for them. They’ll get that and some back if another owner takes over.

 

[Goat]

Really? I didn’t actually know that. Is our max punishment for administration then just a hefty points deduction (and likely relegation)?

The only outcome I see now in the absence of 777’s dodgy funding being sorted is administration and sold off for a nominal amount.

As far as I'm aware mate yeah, points or fines.

 

[matty1878]

Because that 200 mil becomes a high interest loan for them. They’ll get that and some back if another owner takes over.

so the new owners are guna owe money everywhere and that’s not including buying us

ok so we do need an arab

 

[catcherintherye]

The 777 loan wasn't secured again the stadium for sure, if it's secured against anything else I'm unaware though. (Obviously you can secure it again things like season ticket sakes, future TV revenue etc) but as I i said, only know the stadium wasn't used.

777 loan is an unsecured loan.

My feeling on it would be:
1) Some concern that until that court case is done, there is a v small chance contagion spreads. You'd want that established.

You'd also want established who you are paying. If you pay ACap now, you may have to pay different people later. Everyone in that process is looking out for themselves, and looking for a meal ticket. They know Moshiri doesn't have it. TFG are essentially saying they don't/won't.

There's a risk that it could be extended to criminal matters though.

2) Until the court case is resolved, the opportunity to negotiate down that ACap goes. I don't think ACap can even legally reduce it.

It's a signal to the judge though, that nobody is there to pay that value though.

 

[PeregrineT]

Really? I didn’t actually know that. Is our max punishment for administration then just a hefty points deduction (and likely relegation)?

The only outcome I see now in the absence of 777’s dodgy funding being sorted is administration and sold off for a nominal amount.

Because that 200 mil becomes a high interest loan for them. They’ll get that and some back if another owner takes over.

I dont think you are quite thinking that through.

You say they lashed in 200 mill in because its a high interest loan that they will get back and then some, and just before that said the only outcome in the case of 777s funding being sorted is administration where they dont get that back. Which is it?