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Pompey Takeover Saga

Fitzhugh Fella

By Fitzhugh Fella,
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CB Saint

CB Saint

Posted
Posted
Who in their right mind is going to invest within 5 days when it would probably take a month to do due dilligence?

 

I have know deals to be done without due dilligence - it usually depends upon the price and complexity of the business being bought or the buyers view of risk.

 

IN this case if I was a buyer iwould be demanding a large discount for the lack of due dilligence. The selling price would be a £1 but with an undertaking to cover the debts. I think that any buyer would be insisting the Gaydamak and Chanrai accept a reduced amount to write off their debts eg 20p in the £ seeing as a buyer would have to cover the existing third party debts and £4-5m per month operating costs.

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CB Saint

CB Saint

Posted
Posted
No way does gaydamak have to accept a reduced settlement. He can sit on the land knowing that it is vital for expansion.

 

He already owns the land but he is also owed £28m by the club. So it will be a question of accepting, say, £5.6m (assuming 20p in the £1) or potentially getting nothing. Depends on how much the land is worth really.

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Wade Garrett

Wade Garrett

Posted
Posted
He already owns the land but he is also owed £28m by the club. So it will be a question of accepting, say, £5.6m (assuming 20p in the £1) or potentially getting nothing. Depends on how much the land is worth really.

 

Could Gaydamak and Chanrai close the club down and use all the land to develop? This is my dream scenario.

 

I know they are supposed to be sworn enemies, but is a bit coinicidental that they are both tied up with Pompey.

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hypochondriac

hypochondriac

Posted
Posted
He already owns the land but he is also owed £28m by the club. So it will be a question of accepting, say, £5.6m (assuming 20p in the £1) or potentially getting nothing. Depends on how much the land is worth really.

 

chainrai isn't going to let the club disappear, he's owed too much money. Admin is possible but even then gaydamak can keep the land. If any deal is to be done I would imagine it will involve a new owner paying him what he is owed over a long period. If I were him I would hold out until the end. If some rich airhead wanted Pompey then he would get all his money. Why would he give that away for 5 million?

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GenevaSaint

GenevaSaint

Posted
Posted
Unless, of course, the football side is only part of the attraction and not a development around it that would pay for a large chunk of the stadium cost. A hotel/ conference centre and concert venue for example. Don't forget there's around £20m to come from the PL even for the team that finishes bottom (as we undoubtedly will) plus the parachute payments. My guess is that HMRC will do a deal as long as the club/ PL guarantee their cash will be paid out of the end of season SKY cash. I'm sure they'd rather get their money than wind the club up and get nothing.

 

Whether we'll be wound up or not and whether new owners will come in I'm not sure but I think your lots bitterness to all things blue is clouding your judgment on this one.

 

But there seems to be so many experts on here that I guess you all must be right and no-one will buy PFC :D

 

You're a tedious little git aren't you. Oh, corpy thinks things are going well so amazingly he returns. Go back to your gardening leave. At least PES and Mero stayed through the whole sorry affair which is not over yet BTW. Role on the 10th.

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CB Saint

CB Saint

Posted
Posted
chainrai isn't going to let the club disappear, he's owed too much money. Admin is possible but even then gaydamak can keep the land. If any deal is to be done I would imagine it will involve a new owner paying him what he is owed over a long period. If I were him I would hold out until the end. If some rich airhead wanted Pompey then he would get all his money. Why would he give that away for 5 million?

 

Any new owner would want a clean slate (to a certain extent) The last thing they would want would be the current band of vultures circling the club and dirtying the waters. Not entirely sure Gaidamak has much choice. On wednesday they will be in admin if nothing changes and he will lose £28m. Or he could accept a smaller payment now if a buyer turned up.

 

No buyer will be held to ransom by this lot because on Wednesday he can get the club on the cheap without debt.

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teamsaint

teamsaint

Posted
Posted

like rupes, those with a vested interest are trying to get out what they can, or minimise their losses.

Really can't see how the new owner will get his money back.Likely too end up spending millions more.

 

anybody who wants to buy a football club on the cheap would do much better taking a trip to selhurst.

AT least they have a decent fanbase!

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Daren W

Daren W

Posted
Posted
a quote from a skate

 

"The scummers have always had XXXXXXe support.

When it comes to playing the game, I have to say the local leagues, clubs and schools are better organised over on that side of Hampshire. But when it comes to watching the professional game, it's no hotbed of football, I'm afraid. "

 

how on earth can they preach this shyt..?

 

The same way they preach they're a big club when they get crowds of 10,315 for a home cup game, knowing they need money just to pay the wages...

 

The delusion is just mind blowing...

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Weston Saint

Weston Saint

Posted
Posted
Gaydamak has said he was financially hit by the recession and would sell the club to a buyer willing to fund the club's losses and keep it going, preferably in the Premier League. Gaydamak is owed money himself, although his advisers said that he wrote off £13.5m of loans. Gaydamak's trust fund agreed to become directly liable, instead of the club, to Standard Bank, for around £25m. The club owes that money now to Gaydamak's trust, not the banks, and together with other amounts owing to Gaydamak, owes him a total of £33.5m. A £9.5m instalment due to be repaid at the end of January was not met; the rest is due for repayment in stages by 2012. Gaydamak still owns the land around Fratton Park, although not the stadium itself

 

So is this why Pompey dispute they do not owe Gaydamac?

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Goalie66

Goalie66

Posted
Posted

Taken from Coper Matthews web site

The three main effects of Winding Up a company

There are three main areas that company directors need to be aware of:

 

1.Freezing of Company Bank Accounts and Assets

Under section 127(1) of the Insolvency Act 1986, if a company is wound up, any sale of the company's property, any transfer of shares, or any alteration in the status of the company's shareholders, made after the commencement of the winding-up is void, unless otherwise ordered by the court.

 

This means that it is very difficult for a company to continue to trade after a winding up petition is issued.

 

2.Director Investigation

Once a company has been ordered to be wound up by the court, the appointed liquidator must investigate the activities of the company directors to ensure that they have acted properly and according to their legal duties. If the liquidator believes that the directors are guilty of wrongful trading they may recommend that the directors are banned from all current and future directorships for a period of time. This is commonly known as striking off.

 

3.Directors personal liability for company debts

If company directors are found guilty of continuing to allow a business to trade while insolvent, they may become personally liable for the debts incurred by the company from the time they knew the business was insolvent.

 

Therefore my interpretation of this would be:

 

Chanrais take over would be null and void as in effect he is just another creditor.

 

Jacobs are Storrie would lose entitlement to become Directors

 

Storrie could well be PERSONALLY liable for the debts as CEO of PCFC....unless someone pays the 7.5 million + to HMRC and Grosvenor next Wednesday.

 

It is too late for PCFC to enter Administartion as it is pay up or be liquidated.

 

Am I correct?

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bridge too far

bridge too far

Posted
Posted
Taken from Coper Matthews web site

The three main effects of Winding Up a company

There are three main areas that company directors need to be aware of:

 

1.Freezing of Company Bank Accounts and Assets

Under section 127(1) of the Insolvency Act 1986, if a company is wound up, any sale of the company's property, any transfer of shares, or any alteration in the status of the company's shareholders, made after the commencement of the winding-up is void, unless otherwise ordered by the court.............

 

Therefore my interpretation of this would be:

 

Chanrais take over would be null and void as in effect he is just another creditor.........

 

Am I correct?

 

This is exactly what I was thinking yesterday / Thursday night when I heard about his 'takeover'. But I do wonder if there was a clause in the loan conditions when he bailed them out recently that said, if repayments were not made on time, he could take over the company.

 

If such a clause existed when he lent the money, but before the WUP, what would take precedence?

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Whitey Grandad

Whitey Grandad

Posted
Posted
This is exactly what I was thinking yesterday / Thursday night when I heard about his 'takeover'. But I do wonder if there was a clause in the loan conditions when he bailed them out recently that said, if repayments were not made on time, he could take over the company.

 

If such a clause existed when he lent the money, but before the WUP, what would take precedence?

The company is a separate legal body so the ownership of the shares is not relevant, IMO.

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Sylvia Saint

Sylvia Saint

Posted
Posted
Taken from Coper Matthews web site

The three main effects of Winding Up a company

There are three main areas that company directors is wound up need to be aware of:

 

1.Freezing of Company Bank Accounts and Assets

Under section 127(1) of the Insolvency Act 1986, if a company , any sale of the company's property, any transfer of shares, or any alteration in the status of the company's shareholders, made after the commencement of the winding-up is void, unless otherwise ordered by the court.

 

This means that it is very difficult for a company to continue to trade after a winding up petition is issued.

 

These two seem to contracdict each other? I think you may be confusing when a winding up petition is issued and when winding up commences. Happy to be proved wrong.

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rallyboy

rallyboy

Posted
Posted

I think that is correct, the process started when they issued the petition, their activity since then should have been seriously restricted - but it hasn't been!

Taking on new staff and missing further payments can't go down well with the court.

 

the arms dealer's land isn't relevant to the winding up, it's a done deal and just a complication for a new owner with aspirations to blow £100M on redevelopment - though they might want to sweep for landmines if it's been used for storage.

 

There isn't an access issue either as the stadium has a towbar at one end and apart from knocking a few horse brass off the walls, the whole thing can be hitched up and moved a bit.

I guess we will discover on Wednesday how lucky that heather really is.

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hamster

hamster

Posted
Posted

Paul Merson was laughing whilst having apop at them on Sky this afternoon. Then hastily added "don;t get me wrong, I enjoyed my time down there, great fans" or something like that.

 

I think it was Jeff who said "it's not even the size of the debt. If they only owed 50p they couldnt afford to pay it back".

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fromdayone

fromdayone

Posted
Posted
they were mentioning on soccer sat that if pompey are adrift by more than 9 points and enter admin..they will take the deduction next season..no matter what..?

 

is this true anyone..?

 

Thats what happened to us when we went in to admin. If we had finished outside the relegation places the points deduction would have come into force that season to send us down. However because we had effectively been relegated under our own steam, the points were held over to punish us at the start of this season.

 

4 nil man u.... quality!

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dubai_phil

dubai_phil

Posted
Posted
5-0 full time and another point away from safety.

 

And the body language of many of the players......

 

Yep, they were cruelly unlucky - 2 freak own goals and a wicked deflection, but then again when we were breaking "The Rules" our luck was awful as well.

 

Still, the mini bubble of optimism has been well and truly spiked.

 

Wish I could say that our performances of late made us look like adding to their woes but it sure doesn't

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aintforever

aintforever

Posted
Posted
Thats what happened to us when we went in to admin. If we had finished outside the relegation places the points deduction would have come into force that season to send us down. However because we had effectively been relegated under our own steam, the points were held over to punish us at the start of this season.

 

4 nil man u.... quality!

 

That was only because we went into admin after the deadline, if Lowe had pulled the plug a few days earlier we would have took the -10 hit last season.

 

I don't know if there is a deadline in the Prem or not.

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StD

StD

Posted
Posted

I don't know if there is a deadline in the Prem or not.

 

I'm sure I read somewhere the other day that its some time in March for the Premiership... although if they get relegated I'm not sure how it will work because its up to the Football Leaue to 1) accept them if they're still in a mess 2) decide on any points deductions.

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Joey-deacons-left-nut

Joey-deacons-left-nut

Posted
Posted
they were mentioning on soccer sat that if pompey are adrift by more than 9 points and enter admin..they will take the deduction next season..no matter what..?

 

is this true anyone..?

 

I think, that if they are more than 9 points adrift WITHOUT a -9 points penalty at the end of the season then it will probably be applied next season.... they WILL be made an example of.

 

 

I'd also wager that -9 will only be the start of their points deduction... once they go into Admin and an Administrator gets their hands on the book all sorts of stuff is going to come out of the woodwork....

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Gemmel

Gemmel

Posted
Posted
I'd also wager that -9 will only be the start of their points deduction... once they go into Admin and an Administrator gets their hands on the book all sorts of stuff is going to come out of the woodwork....

 

 

I'm going minus 19 to 26

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OldNick

OldNick

Posted
Posted
Jacobs not challenging Chainrai's takeover.

 

http://soccernet.espn.go.com/news/story?id=737389&sec=england&cc=5739

No doubt the club cant afford the lawyers and Im sure he wont do it from his own pocket. Add to that I assume all debts willnow fall into Chanrais hands.

It will be interesting to see if the Revenue actually stand up and make an example of Pompey or try and play the soft approach.

If it does actually make it to court Im sure the judge will see that the club has constantly breached any lieniency given to them in the past. I also wonder if the vat is up to date?

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St Marco

St Marco

Posted
Posted

Lets assume they survive the court cases and can go until the end of the season

 

14 games left. 8 home and 6 away. Potential points = 42 points.

 

fixtures

Sunderland (H)

Stoke (H)

Burnley (A)

Chelsea (H)

Birmingham (H)

Liverpool (A)

Hull (H)

Tottenham (A)

Blackburn (H)

Wigan (A)

Villa (H)

Bolton (A)

Wolves (H)

 

Take away the Chelsea,Liverpool,Spurs and Villa games as they will most likely lose them means they have 10 games to save their lives.

 

They are already 8 behind. Which means of the 10 games they need 3 wins just to get out of the zone. Leaving 7 games. Which you would have to guess they would probably need to win 4-5 of those to stay out of it.

 

Translated they need to win at bare minimum 7 of their 10 games or they will be relegated.

 

Not going to happen.

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EastleighSoulBoy

EastleighSoulBoy

Posted
Posted
I think, that if they are more than 9 points adrift WITHOUT a -9 points penalty at the end of the season then it will probably be applied next season.... they WILL be made an example of.

 

 

I'd also wager that -9 will only be the start of their points deduction... once they go into Admin and an Administrator gets their hands on the book all sorts of stuff is going to come out of the woodwork....

 

What books?

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CB Fry

CB Fry

Posted
Posted
they were mentioning on soccer sat that if pompey are adrift by more than 9 points and enter admin..they will take the deduction next season..no matter what..?

 

is this true anyone..?

 

Thats what happened to us when we went in to admin. If we had finished outside the relegation places the points deduction would have come into force that season to send us down. However because we had effectively been relegated under our own steam, the points were held over to punish us at the start of this season.

 

4 nil man u.... quality!

 

 

No it isn't. We went into admin after the deadline. It would have only applied that season if we had saved ourselves. We didn't so we had it deducted the following season.

 

This Pompey scenario is completely different, esp if they go into admin next week. Would be the right thing to do.

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OldNick

OldNick

Posted
Posted
Lets assume they survive the court cases and can go until the end of the season

 

14 games left. 8 home and 6 away. Potential points = 42 points.

 

fixtures

Sunderland (H)

Stoke (H)

Burnley (A)

Chelsea (H)

Birmingham (H)

Liverpool (A)

Hull (H)

Tottenham (A)

Blackburn (H)

Wigan (A)

Villa (H)

Bolton (A)

Wolves (H)

 

Take away the Chelsea,Liverpool,Spurs and Villa games as they will most likely lose them means they have 10 games to save their lives.

 

They are already 8 behind. Which means of the 10 games they need 3 wins just to get out of the zone. Leaving 7 games. Which you would have to guess they would probably need to win 4-5 of those to stay out of it.

 

Translated they need to win at bare minimum 7 of their 10 games or they will be relegated.

 

Not going to happen.

todays results would have been a kick in the guts for Pompey, with a bit of luck Wolves will raise their game as they know they need something tomorrow. A point minimum will help them pull away a tad, a win and Pompeys job is getting very difficult. Listening to the BBC commentators and they were quite scathing how poor they were today.If we could happen to pull off a shock next week and they could go into freefall.
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Goalie66

Goalie66

Posted
Posted
These two seem to contracdict each other? I think you may be confusing when a winding up petition is issued and when winding up commences. Happy to be proved wrong.

 

My understanding is that once a winding up petition is issued bank accounts are frozen and pending the order to wind all actions by the Directors to increase the debt or liability is Retospective to the date of the ISSUE of the Winding up order.

 

Chanrai has either got to pay up or PCFC will be liquidated next Wednesday.

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BTW Saint

BTW Saint

Posted
Posted

Portsmouth FC: Born 1898, died 2010? Financial meltdown could spell end for proud Fratton Park club after 112 years

 

Read more: http://www.dailymail.co.uk/sport/football/article-1249088/Portsmouth-FC-Born-1898-died-2010-Financial-meltdown-spell-end-proud-Fratton-Park-club-112-years.html#ixzz0enUcvDXx

 

 

If a High Court judge grants a winding-up order on Wednesday, Portsmouth would go out of business immediately. Finito. Kaput.

 

 

"Hated local rivals Southampton would progress unchallenged to the quarter-finals of the FA Cup because Saturday's derby would no longer take place"

 

Read more: http://www.dailymail.co.uk/sport/football/article-1249088/Portsmouth-FC-Born-1898-died-2010-Financial-meltdown-spell-end-proud-Fratton-Park-club-112-years.html#ixzz0enTfTDGp"

 

 

Duke of Westminster is pushing Portsmouth to edge

 

Read more: http://www.dailymail.co.uk/sport/football/article-1249103/Duke-Westminster-pushing-Portsmouth-edge.html#ixzz0enUSB8h7

 

 

Only being sued for £90,000 so could easily be bourght off.

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jdsaint

jdsaint

Posted
Posted

You're gonna love this article in NOTW tomorrow

 

http://www.newsoftheworld.co.uk/sport/721516/LIGHTS-OUT-FOR-PORTSMOUTH.html

 

South Coast rivals Southampton are ready to write off £120,000 to help their penniless neighbours.....But a St Mary's spokesperson said: "It is a relatively small amount of money for us"

 

Anyway the power is apparently going off tomorrow and someone called Nyron Nosworthy is explaining why he went to Sheff United.

 

50p for the meter time then?

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