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Who's your money on in the takeover 'battle'?

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PeregrineT said:
Nobody pays 40 million as a "sweetener". And I thought you said that was the "downpayment" so to speak and that there would be more payments to Moshiri in the following years as the asset performed?
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Read the posts. 20 Million in cash to Moshiri. 20 Million to RMF to pay down debt. Moshiri can earnout more cash if the investment performs over 10 years. He could also earn nothing.
 
BeardedScotsman said:
Timeline would be...ACAP needs to agree to convert debt to equity (sounds like a go there), then MSP can move forward with PL approval. They would satisfy the PL rules ONLY if ACAP agrees with a majority of their debt being converted to equity. RMF recoups 20 million at time of takeover. Moshiri walks away with 20 million and 10-30% of his current shares. The debt against the stadium is re-financed down the road and another tranche is paid back to RMF (already agreed in principal). The re-finance also allows MSP to pay off or pay down ACAP loans. Theoretically, in two years, MSP could own 90% of Moshiri's shares, RMF could see 80 million of its loans paid off, ACAP could own a minority stake in the club and have all of their loans paid off. And Moshiri could potentially be paid out more revenue over 10 years for his remaining shares. I believe that would leave 120 million in debt owed to RMF and 350 million of debt on the stadium but at a fixed cost.

It is an incredibly complex deal. Moshiri, RMF as senior lender, ACAP as secondary lender and the PL all have to be satisfied here.
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If MSP have only done a cash call for £40m, and that is going straight to Moshiri/RMF, then where is the money coming from to keep the club running and fund the rest of the stadium?

Just thinking of the requirements the Premier League set for 777, they needed the stadium money and money to fund us for around 6 months in an escrow account. That was on top of their £200m being converted to equity AND the MSP loan being paid off.

Surely the same would apply to MSP except with their current loan one would assume that is to be converted to equity?

They must also be putting money in from elsewhere I.e. not investors or else they won't meet the Premier Leagues requirements?
 
BeardedScotsman said:
Any guess work has been stated as such. I've been very careful since my first post to not add any guess work. When I have, I have made it clear it was my assumption based on the facts shared with us.
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I would suggest the comments about items such as 777 only being interested in us if we were relegated, and documents being signed, were guesswork, assumptions made. But strongly enough they appeared presented as facts from someone in the know about them.
 

ashwuk76 said:
People are claiming it proves he's using that company to buy everton. Which I personally don't agree it shows. It was set up a month ago with only andy bell as the director. If it was everton takeover related I would have expected other people on the directors list.
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so the one we want it’s saying that he’s using that to buy us?

well all i know is now it’s MSP

and i’m back to being depressed about us
 
toffee66 said:
This is the cap on a leveraged buy out. It limits the debt placed on the club by the acquirer as part of the deal not the acquired debt. The latter is at PL discretion.

MSP would have to capitalise a substantial part of their current loan to comply with the acquisition leverage rule but they would convert anyway in the deal you suggest. They do not necessarily need new cash or to pay down other debt to comply with the PL rules unless the PL specifically make it a condition of approval as they did for 777 with MSP’s debt.

Of course a side deal to pay RMF something to have them on board would make sense to stop them trying to block the acquisition of additional shares beyond the debt/equity conversion. £20m is less than I would ask if I was them but if they are confident they will get bought out soon after then yeah, take some £ now.

As for ACap taking a minority share by converting debt, they have issues in USA and need to restructure because they are having to write down and divest 777 ‘assets’. I am sure they would rather have cash than EFC shares but again you take what you can get (but there is a cash alternative if we believe the Bell/Downing briefing).

Even if PL do not make a stipulation on other debt in practical terms any buyer will absolutely need access to funds to restructure debt, but that can obviously be borrowed from BDT & MSD or others by any credible acquirer (in theory).

You have been more certain than I would want to be in your shoes, particularly with Bell & Downing briefing Slater, Joyce and others quite differently. Your confidence is impressive so I doff my cap. You will certainly deserve some ITK of the year award if it pans out. If not, a grand blag should always be admired.

GOT definitely needs an awards night, our very own Oscars! 😉 Make it happen lads.
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Fair. I was confident a year ago. And that turned out to be dumb of me.
 

BeardedScotsman said:
Read the posts. 20 Million in cash to Moshiri. 20 Million to RMF to pay down debt. Moshiri can earnout more cash if the investment performs over 10 years. He could also earn nothing.
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I read the posts, and if true, this doesnt tell us what the terms of what Moshiri earns are. Like with player contracts it could be likely-to-be-earned or unlikely. It could be he earns 100million if the club stay in the league next season. Without knowing those specific terms it appears premature to say Moshiri wont earn much when he could indeed get hundreds of millions in future payments.
 
AndyRJ said:
If MSP have only done a cash call for £40m, and that is going straight to Moshiri/RMF, then where is the money coming from to keep the club running and fund the rest of the stadium?

Just thinking of the requirements the Premier League set for 777, they needed the stadium money and money to fund us for around 6 months in an escrow account. That was on top of their £200m being converted to equity AND the MSP loan being paid off.

Surely the same would apply to MSP except with their current loan one would assume that is to be converted to equity?

They must also be putting money in from elsewhere I.e. not investors or else they won't meet the Premier Leagues requirements?
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Stadium has about 65 million left in costs
 

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