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Post by Henbury Gas on Aug 14, 2015 10:29:55 GMT
Think the explains its a dead duck.... Wasn't it always?
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Cheshiregas
Global Moderator
Joined: May 2014
Posts: 2,166
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Post by Cheshiregas on Aug 14, 2015 12:59:51 GMT
So, come the end of the year when the loan is due, along with the additional legal fees and costs if the case is lost, what is a realistic scenario?
I genuinely have no idea.
The nature of a bridging finance company is that it lends short term usually less than a year and the rates are generally higher than banks as the risk is considered higher. Depending on whether Nicholas needs more cash to fund his growing legal bill the following are likely possibilities. 1) If MSP feel the risk is still within manageable levels they may chose to lend more but will charge a significant fee for renewal and increase. The interest rate is likely to stay the same. 2) If MSP feel the risk they currently have is commensurate with the level of security and the value of the Mem if it was sold in a "fire sale" then they may stay at the same funding level at the same (or higher) rate for a further period. They will charge a fee for renewal. Nicholas would have to raise the extra spondoolicks elsewhere. 3) MSP may wish to play hardball knowing Nicholas can't go anywhere else and charge a penalty fee for non repayment, a renewal fee and raise the interest rate for extending the loan. No extra cash. 4) They can call the security and put in place an Administrator. I do not think is a road they will go down in view of the level of security of the Mem even in a "fire sale". I think they will hang fire while the Shamesbury case rumbles on. If Rovers lose however then I am sure they will take steps to protect their position and that will be the really interesting times. In the meantime the fees continue to rack up...
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Deleted
Joined: January 1970
Posts: 0
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Post by Deleted on Aug 14, 2015 14:30:56 GMT
So, come the end of the year when the loan is due, along with the additional legal fees and costs if the case is lost, what is a realistic scenario?
I genuinely have no idea.
The nature of a bridging finance company is that it lends short term usually less than a year and the rates are generally higher than banks as the risk is considered higher. Depending on whether Nicholas needs more cash to fund his growing legal bill the following are likely possibilities. 1) If MSP feel the risk is still within manageable levels they may chose to lend more but will charge a significant fee for renewal and increase. The interest rate is likely to stay the same. 2) If MSP feel the risk they currently have is commensurate with the level of security and the value of the Mem if it was sold in a "fire sale" then they may stay at the same funding level at the same (or higher) rate for a further period. They will charge a fee for renewal. Nicholas would have to raise the extra spondoolicks elsewhere. 3) MSP may wish to play hardball knowing Nicholas can't go anywhere else and charge a penalty fee for non repayment, a renewal fee and raise the interest rate for extending the loan. No extra cash. 4) They can call the security and put in place an Administrator. I do not think is a road they will go down in view of the level of security of the Mem even in a "fire sale". I think they will hang fire while the Shamesbury case rumbles on. If Rovers lose however then I am sure they will take steps to protect their position and that will be the really interesting times. In the meantime the fees continue to rack up... And isn't 'bridging' the operative word? It's supposed to 'bridge' a cashflow problem, as in 'we need money now, that we'll have in the future but haven't got yet, so we'll borrow it off you at a silly rate, confident that we'll be able to repay it because something will conjure it up between now and then'. 'Conjure' is usually a fairly certain cash generating event kicking in. What's our 'something'? I think the general assumption is that it was supposed to be the court case and the repayment would be taken out of the 'winnings'. Sadly, that prize fund currently stands at minus £375k. We're on a bridge to nowhere where we'll be greeted by a man with a briefcase, your option list, and all the aces.
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The Gas
Joined: May 2014
Posts: 484
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Post by The Gas on Aug 14, 2015 15:18:10 GMT
So, come the end of the year when the loan is due, along with the additional legal fees and costs if the case is lost, what is a realistic scenario?
I genuinely have no idea.
The nature of a bridging finance company is that it lends short term usually less than a year and the rates are generally higher than banks as the risk is considered higher. Depending on whether Nicholas needs more cash to fund his growing legal bill the following are likely possibilities. 1) If MSP feel the risk is still within manageable levels they may chose to lend more but will charge a significant fee for renewal and increase. The interest rate is likely to stay the same. 2) If MSP feel the risk they currently have is commensurate with the level of security and the value of the Mem if it was sold in a "fire sale" then they may stay at the same funding level at the same (or higher) rate for a further period. They will charge a fee for renewal. Nicholas would have to raise the extra spondoolicks elsewhere. 3) MSP may wish to play hardball knowing Nicholas can't go anywhere else and charge a penalty fee for non repayment, a renewal fee and raise the interest rate for extending the loan. No extra cash. 4) They can call the security and put in place an Administrator. I do not think is a road they will go down in view of the level of security of the Mem even in a "fire sale". I think they will hang fire while the Shamesbury case rumbles on. If Rovers lose however then I am sure they will take steps to protect their position and that will be the really interesting times. In the meantime the fees continue to rack up... You omitted one other scenario - the loan is paid off before it's due date
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Deleted
Joined: January 1970
Posts: 0
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Post by Deleted on Aug 14, 2015 16:03:48 GMT
The nature of a bridging finance company is that it lends short term usually less than a year and the rates are generally higher than banks as the risk is considered higher. Depending on whether Nicholas needs more cash to fund his growing legal bill the following are likely possibilities. 1) If MSP feel the risk is still within manageable levels they may chose to lend more but will charge a significant fee for renewal and increase. The interest rate is likely to stay the same. 2) If MSP feel the risk they currently have is commensurate with the level of security and the value of the Mem if it was sold in a "fire sale" then they may stay at the same funding level at the same (or higher) rate for a further period. They will charge a fee for renewal. Nicholas would have to raise the extra spondoolicks elsewhere. 3) MSP may wish to play hardball knowing Nicholas can't go anywhere else and charge a penalty fee for non repayment, a renewal fee and raise the interest rate for extending the loan. No extra cash. 4) They can call the security and put in place an Administrator. I do not think is a road they will go down in view of the level of security of the Mem even in a "fire sale". I think they will hang fire while the Shamesbury case rumbles on. If Rovers lose however then I am sure they will take steps to protect their position and that will be the really interesting times. In the meantime the fees continue to rack up... You omitted one other scenario - the loan is paid off before it's due date Are there redemption penalties in place for early resettlement?
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The Gas
Joined: May 2014
Posts: 484
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Post by The Gas on Aug 14, 2015 16:28:29 GMT
You omitted one other scenario - the loan is paid off before it's due date Are there redemption penalties in place for early resettlement? I've no idea as I have not seen the Contract.
I was just pointing out that there is another possibility.
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Post by chippenhamgas on Aug 14, 2015 16:46:44 GMT
Are there redemption penalties in place for early resettlement? I've no idea as I have not seen the Contract.
I was just pointing out that there is another possibility.
apparently it's watertight.
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Post by o2o2bo2ba on Aug 14, 2015 17:02:39 GMT
[/quote]You omitted one other scenario - the loan is paid off before it's due date [/quote]
That post should be in the 'credit where it's due' thread, shouldn't it?!
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Post by Topper Gas on Aug 14, 2015 17:38:55 GMT
Just been informed a straight forward appeal in a county court case is taking over 12 months to be heard, unless we can get the Court of Appeal to accelerate our hearing it could be over a year before it's heard. By then, if MCP are prepared to extend the loan, it could be a £3.5m debt?
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Post by Henbury Gas on Aug 14, 2015 18:17:22 GMT
The nature of a bridging finance company is that it lends short term usually less than a year and the rates are generally higher than banks as the risk is considered higher. Depending on whether Nicholas needs more cash to fund his growing legal bill the following are likely possibilities. 1) If MSP feel the risk is still within manageable levels they may chose to lend more but will charge a significant fee for renewal and increase. The interest rate is likely to stay the same. 2) If MSP feel the risk they currently have is commensurate with the level of security and the value of the Mem if it was sold in a "fire sale" then they may stay at the same funding level at the same (or higher) rate for a further period. They will charge a fee for renewal. Nicholas would have to raise the extra spondoolicks elsewhere. 3) MSP may wish to play hardball knowing Nicholas can't go anywhere else and charge a penalty fee for non repayment, a renewal fee and raise the interest rate for extending the loan. No extra cash. 4) They can call the security and put in place an Administrator. I do not think is a road they will go down in view of the level of security of the Mem even in a "fire sale". I think they will hang fire while the Shamesbury case rumbles on. If Rovers lose however then I am sure they will take steps to protect their position and that will be the really interesting times. In the meantime the fees continue to rack up... You omitted one other scenario - the loan is paid off before it's due date So you have heard that as well
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The Gas
Joined: May 2014
Posts: 484
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Post by The Gas on Aug 14, 2015 19:52:59 GMT
You omitted one other scenario - the loan is paid off before it's due date So you have heard that as well Heard what?
Only putting a different scenario to Cheshire Gas message.
Probably my attending the Appeal Court case has made me more inquisitive.
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Peter Parker
Global Moderator
Richard Walker
You have been sentenced to DELETION!
Joined: May 2014
Posts: 4,920
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Post by Peter Parker on Aug 14, 2015 20:12:56 GMT
Of course Nick is going to pay Wonga out of his own pocket and we will have to be forever grateful.
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Post by Topper Gas on Aug 14, 2015 20:56:17 GMT
No the rumour is the UWE are going to pay off the loan, clear our other debts, then build us a new ground and let us play in it rent free. After all what else are they going to do with all the extra £9K's they are going to start receiving soon, spend it on students education?
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Post by bluebeard on Aug 14, 2015 23:38:16 GMT
To summarise; The original Barclays loan was £900K and GD got a partial repayment of £200k (no idea where this figure came from but it's been quoted at least twice on this forum so it must now be a fact). Trading losses for the previous season were £700k (a guess, but if someone would be kind enough to repost this figure we can regard it as accurate). Let's pretend we are on a no win no fee arrangement or fully insured so the club is currently only liable for Sainsburys interim legal costs of £375k. Let's be generous and assume we broke even last season after cutting costs and getting to Wembley. Let's be realistic and assume that we are using the surplus loan money to cover interest (£360k pa). So, £2.6m from MSP minus £900k minus £200k minus £700k minus £375k minus £360k. By my reckoning, we still have £65k left to blow and we don't have to pay the loan back for ages yet! Cheer up everyone!!
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Post by bluebeard on Aug 14, 2015 23:53:53 GMT
The nature of a bridging finance company is that it lends short term usually less than a year and the rates are generally higher than banks as the risk is considered higher. Depending on whether Nicholas needs more cash to fund his growing legal bill the following are likely possibilities. 1) If MSP feel the risk is still within manageable levels they may chose to lend more but will charge a significant fee for renewal and increase. The interest rate is likely to stay the same. 2) If MSP feel the risk they currently have is commensurate with the level of security and the value of the Mem if it was sold in a "fire sale" then they may stay at the same funding level at the same (or higher) rate for a further period. They will charge a fee for renewal. Nicholas would have to raise the extra spondoolicks elsewhere. 3) MSP may wish to play hardball knowing Nicholas can't go anywhere else and charge a penalty fee for non repayment, a renewal fee and raise the interest rate for extending the loan. No extra cash. 4) They can call the security and put in place an Administrator. I do not think is a road they will go down in view of the level of security of the Mem even in a "fire sale". I think they will hang fire while the Shamesbury case rumbles on. If Rovers lose however then I am sure they will take steps to protect their position and that will be the really interesting times. In the meantime the fees continue to rack up... And isn't 'bridging' the operative word? It's supposed to 'bridge' a cashflow problem, as in 'we need money now, that we'll have in the future but haven't got yet, so we'll borrow it off you at a silly rate, confident that we'll be able to repay it because something will conjure it up between now and then'. 'Conjure' is usually a fairly certain cash generating event kicking in. What's our 'something'? I think the general assumption is that it was supposed to be the court case and the repayment would be taken out of the 'winnings'. Sadly, that prize fund currently stands at minus £375k. We're on a bridge to nowhere where we'll be greeted by a man with a briefcase, your option list, and all the aces. Thank goodness you don't write definitions for the Oxford Dictionary, that would be one heavy read. But fair play, you finished it with a flourish and I like what you did with the bridge to nowhere thing.
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Lazza
Rod Hull
Joined: May 2014
Posts: 264
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Post by Lazza on Aug 15, 2015 9:52:42 GMT
Of course Nick is going to pay Wonga out of his own pocket and we will have to be forever grateful...... for his ever continuing mistakes and ineptitude in running a football club.
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Post by Henbury Gas on Aug 15, 2015 10:19:21 GMT
Of course Nick is going to pay Wonga out of his own pocket and we will have to be forever grateful...... for his ever continuing mistakes and ineptitude in running a football club. Like Julius caesar, somebody will put a Financial knife in his back one day....
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Deleted
Joined: January 1970
Posts: 0
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Post by Deleted on Aug 15, 2015 10:20:16 GMT
Thank goodness you don't write definitions for the Oxford Dictionary, that would be one heavy read. You think that's a heavy read? I read the A to Z from cover to cover, the story line was rubbish, but the places mentioned in the book, they felt almost real.
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Deleted
Joined: January 1970
Posts: 0
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Post by Deleted on Aug 15, 2015 11:26:36 GMT
... for his ever continuing mistakes and ineptitude in running a football club. Like Julius caesar, somebody will put a Financial knife in his back one day.... I think he's managing to do that to himself without outside help.
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Deleted
Joined: January 1970
Posts: 0
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Post by Deleted on Aug 15, 2015 11:40:25 GMT
... for his ever continuing mistakes and ineptitude in running a football club. Like Julius caesar, somebody will put a Financial knife in his back one day.... [hidden agenda alert]
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