Pompey Takeover Saga

[Saint Keith]

love this quote from the judges transcript. apologies of this has already been posted

 

Court registrar Christine Derrett said she feared the company would continue to trade and build up more debts that would not be paid.

 

"I am very concerned about the financial status of this company," she said. "It seems to me there's a very real risk that this company is undoubtedly trading while it is insolvent.

 

"I'm obviously conscious that, by making a winding-up order, it would have very severe consequences not only for the company as a business but for the supporters themselves, but that's not a consideration that I strictly take into account."

 

the are foooooooooooooooooooked royally. 7 days of re-arranging the deckchairs, then the monster sized iceberg hits them

[JonnyLove]

But - in 9 days time - they will still be insolvent. Their liabilities will still far outweigh their assets.

 

They might as well offer a Euromillions ticket as proof of future income. It's the here and now that matters, surely :smt102

 

Yes sort of. They will have to prove that the money coming in is enough to pay their debtors in a reasonable time frame and also cover the running costs for the same period. Say 2 years.

 

However as we know they have running staff costs of about £3-5M every month I say good luck to proving their solvent. And unless there is a statement from a buyer that says within 30 days they will purchase the club and pay it's debts they cannot use this.

 

Basically the 7 days given is a legal term for saying get me the figures as a formality but your fooked.

[Gingeletiss]

HMRC will be really p1ssed now. I can't see any deal being done, quite right as well, they will be going for the throat.

[Torres]

l

 

"I am very concerned about the financial status of this company," she said. "It seems to me there's a very real risk that this company is undoubtedly trading while it is insolvent.

 

"I'm obviously conscious that, by making a winding-up order, it would have very severe consequences not only for the company as a business but for the supporters themselves, but that's not a consideration that I strictly take into account."

 

She was quite condescending to the PFC barrister too.

[Foxstone]

Skates are responding that they have proof of future income, including ongoing TV money and if they go down a substantial parachute payment. Don't think its a silly argument.

 

But as they are trading illegally now surely future income is immaterial is it not ?

 

They need millions of quid of new money now to satisfy their debts!

[saintalan]

Does the Statement of Affairs have to be signed by independent auditors?

[Smirking_Saint]

How did they get out of that one !!!!!

[hypochondriac]

Remember that they have to pay almost 3 million in wages soon.

[Crab Lungs]

Replace Craig David with Peter Story

 

7 Days

 

I met Chanrai on monday

Took Lawyers for a drink on tuesday

We were making it all up by wednesday

Same on thursday & friday & saturday we got spanked at St Marys

 

No Sunday

 

LOL

[Guided Missile]

Does the Statement of Affairs have to be signed by independent auditors?

 

The term statement of affairs is also used to describe a type of balance sheet that shows immediate liquidation amounts, as opposed to acquisition or original costs, and is generally prepared when insolvency or bankruptcy is about to take effect.

[Crab Lungs]

I think another comic strip is in order.... stand by, I have an idea

[Torres]

Basically the 7 days given is a legal term for saying get me the figures as a formality but your fooked.

 

Thats exactly how it sounded. She was bound to consider the new evidence that was submitted (the statement from Tracy/Theresa/whatever her name is) plus allow Vantis (megalol at that!) time to put together a new statement of affiars and for Pompey to provide all documentation to the court that they provided to the PL in January. However, she has given them far less than they wanted (they are asking for about 6 weeks in total I think) because she knows they're insolvent.

[Channon's Sideburns]

Even that bloke Beech has just said someone would need to be stupid to take them over.

 

No **** sherlock.

[positivepete]

11.39am: Latest from Nick Szczepanik at the High Court: A Portsmouth source says that new creditors were appearing as late as last night to jump in on the winding up petition but they've all been dealt with.

 

Sounds like they sent the boys round!

[bridge too far]

How will the Court know that the Statement of Affairs isn't another figment of their imagination?

[Torres]

Does the Statement of Affairs have to be signed by independent auditors?

 

It's being prepared by Vantis. Hello, Agent Orange.

[badgerx16]

Remember that they have to pay almost 3 million in wages soon.

Does that include the Income Tax and the EE & ER National Insurance contributions ?

[Burger]

The term statement of affairs is also used to describe a type of balance sheet that shows immediate liquidation amounts, as opposed to acquisition or original costs, and is generally prepared when insolvency or bankruptcy is about to take effect.

 

I take it that current player asset valuation will be discounted as they can not be sold until next transfer window

[Crab Lungs]

The FA sooooo badly don't want them to blemish their image, thats a disgrace if they have been servicing their debts for them....

[pedg]

If say it rained really heavily on Friday and someone say left a sprinkler on and accidentally stopped the drainage system working so the match was called off would they get their share of the gate then or would it have to wait till the rearranged fixture?

[Merovingian]

dunno why some of you think if you lost Saturday and we then went out of business you would get a bye, the team in the next round would as our fixture will have deemed to have been completed under fair and open competion rules.

[hutch]

No. I think it means they will now have to show up in Court on Feb. 10, and prove that they don't owe any money to the tax man. If they can't, they'll get a few days (maybe 7 or even 14) after that to pay up what they owe or be wound up.

There you go, Bletch. January 19th. I don't take cheques.

[Channon's Sideburns]

dunno why some of you think if you lost Saturday and we then went out of business you would get a bye, the team in the next round would as our fixture will have deemed to have been completed under fair and open competion rules.

 

Welcome back Mero..we didn't think we'd see you again. ;-)

[StD]

11.39am: Latest from Nick Szczepanik at the High Court: A Portsmouth source says that new creditors were appearing as late as last night to jump in on the winding up petition but they've all been dealt with.

 

Sounds like they sent the boys round!

 

 

Armed with Gaydamak's finest weaponry imports.

[S-Clarke]

they've been given a lifeline...and i can't see them throwing this away.

 

can see them being taken over by someone with money in the next week, who will pay off their debts and settle the HMRC - they'll go down, but that's as bad as it'll get now IMO.

[Foxstone]

It's being prepared by Vantis. Hello, Agent Orange.

 

I hope old Tango Man is'nt flying in from Portugal at Pimpley's expense - They could not afford a Hot Air Balloon at the moment..

[altoniansaints]

dunno why some of you think if you lost Saturday and we then went out of business you would get a bye, the team in the next round would as our fixture will have deemed to have been completed under fair and open competion rules.

 

whats fair about trading illegally (insolvent) which is against FA rules??? :smt119

[sussexsaint]

Surely this is worse news for P*mpey than the 28 days by a long way - to my uneducated eye it looks like they are being prepared for liquidation next week, especially when the judges quotes are taken into account.

 

I am still utterly at a loss as to why they are allowed to carry on whilst clearly insolvent

[Foxstone]

dunno why some of you think if you lost Saturday and we then went out of business you would get a bye, the team in the next round would as our fixture will have deemed to have been completed under fair and open competion rules.

 

How are you feeling Mero ?

 

Do these offers exist or are they more "Storrie Telling" !

[Arizona]

dunno why some of you think if you lost Saturday and we then went out of business you would get a bye, the team in the next round would as our fixture will have deemed to have been completed under fair and open competion rules.

 

You're probably right, although it would be completely unfair. Being knocked out of the competition by a club which was trading whilst insolvent, with players they can't afford. If that situation did arise, I would appeal if I were Saints.

[Channon's Sideburns]

So that would be Agent Orange...the 'forensic Accountant'...??

 

Interesting.

[Bongo badger]

You would need 120 mil plus to recover this club and you would have to do it with the intention of making no money from it. Not even a billionair would be stupid enough to just throw money at that place.

[Channon's Sideburns]

whats fair about trading illegally (insolvent) which is against FA rules??? :smt119

 

see my earlier post.

 

Who paid off those other last minute creditors?

 

Don't know, but the FA have a lot to answer for if they got involved.

[dubai_phil]

Wow, this is not what I expected.

 

The Judge has basically stated that she believes that the Directors of the club have been breaking the law. That puts a whole new slant on their position.

 

I expected 28 days, but by giving them only 7 (9) she has given time for a last full disclosure of the facts, cleverly leaving any chance for any grounds for appeal on procedural issues to fail.

 

I did'nt think they would go bust, but this, while not being nailed on, makes it pretty damned likely.

 

Other thoughts for experts.

 

The company is now considered to be trading illegally, hence any actions taken by Directors could be deemed illegal. Should a new owner emerge, what is his position regarding possible legal consequences? We saw with Luton what happened, on this basis a new owner COULD legally find himself straight into the BSQ or League 1

 

I have NEVER come across a bank manager or a legal representative who is remotely interested in "the future prospects for revenue earning" of a company. Bankruptcy is about cash flow at a set point in time. I cannot believe that they went with only that excuse in hand. No creditor will accept to leave a management team in place that has proved incompetent (and possibly illegal) to look after the business for a year until it maybe insh'allah" makes some money.

 

Yet another unexpected turn of events.

 

But the REALLY good news? this thread lasts another 9 days and should get close to 15,000 or so by then!

[TopGun]

dunno why some of you think if you lost Saturday and we then went out of business you would get a bye, the team in the next round would as our fixture will have deemed to have been completed under fair and open competion rules.

 

You can come and join the red and white horde after your final game!

 

I don't expect your pal Corpy to show up here for a while!

[Channon's Sideburns]

Wow, this is not what I expected.

 

The Judge has basically stated that she believes that the Directors of the club have been breaking the law. That puts a whole new slant on their position.

 

I expected 28 days, but by giving them only 7 (9) she has given time for a last full disclosure of the facts, cleverly leaving any chance for any grounds for appeal on procedural issues to fail.

 

I did'nt think they would go bust, but this, while not being nailed on, makes it pretty damned likely.

 

Other thoughts for experts.

 

The company is now considered to be trading illegally, hence any actions taken by Directors could be deemed illegal. Should a new owner emerge, what is his position regarding possible legal consequences? We saw with Luton what happened, on this basis a new owner COULD legally find himself straight into the BSQ or League 1

 

I have NEVER come across a bank manager or a legal representative who is remotely interested in "the future prospects for revenue earning" of a company. Bankruptcy is about cash flow at a set point in time. I cannot believe that they went with only that excuse in hand. No creditor will accept to leave a management team in place that has proved incompetent (and possibly illegal) to look after the business for a year until it maybe insh'allah" makes some money.

 

Yet another unexpected turn of events.

 

But the REALLY good news? this thread lasts another 9 days and should get close to 15,000 or so by then!

 

I wonder what the odds are on Storrie walking before next week?

[Under Weststand]

dunno why some of you think if you lost Saturday and we then went out of business you would get a bye, the team in the next round would as our fixture will have deemed to have been completed under fair and open competion rules.

But its not fair & proper is it Merovingian. This match would have taken place whilst you're trading whilst insolvent, playing with a team that you cannot afford. laying the FA open to an appeal!

[Crab Lungs]

I wonder what the odds are on Storrie walking before next week?

 

Pretty good - he's got a two bed place in Narnia.

[Bongo badger]

I think there will be a few upper tier staff looking for corners to hide in the next week or so.

[Foxstone]

You can come and join the red and white horde after your final game!

 

I don't expect your pal Corpy to show up here for a while!

 

He is under an NDA being one of the "interested parties" perhaps

[TopGun]

It also seems incredible that Vantis were appointed as financial experts at the very last moment. They are living in cloud cuckoo land.

[Channon's Sideburns]

What would be really funny now would be for Pompey to have a 'whistleblower'....

[hutch]

Could be a bit of head-scratching at the FA/PL methinks.

 

The Judge has said it appears that they are trading while insolvent, but she needs to see all the facts to establish this beyond reasonable doubt one way or the other. Nothing wrong with that.

 

I believe trading while insolvent is against the FA/PL rules.

 

What if Saints applied to the FA to have the tie postponed until the Judge rules?

[sidthesquid]

But the REALLY good news? this thread lasts another 9 days and should get close to 15,000 or so by then!

 

You're having a laugh - 15000 by the weekend at the latest. I'm not sure my nerves will take another nine days. Nurse! I need a little lie down.....

[Merovingian]

But its not fair & proper is it Merovingian. This match would have taken place whilst you're trading whilst insolvent, playing with a team that you cannot afford. laying the FA open to an appeal!

 

Its not fair no and I agree - but you know what the FA and Premier League are like, try and take them to court and you get your golden ticket revoked or some such stupid similar thing. The FA will probably say well the court allowed them to continue for a further 7 day's so as far as we are concerned the fixture stands, even though I agree with you guys.

 

How do I feel. Don't know to be honest, part of me wanted to see the club wound up, these jokers fooked off out of our club and us to start again in the conference as FC Pompey.

 

However, there are interested parties that is definite, what their agenda and money situation is I don't know but at least we now know that any takeover has to be in the next 7 days or it's the real end game

[Hatch]

dunno why some of you think if you lost Saturday and we then went out of business you would get a bye, the team in the next round would as our fixture will have deemed to have been completed under fair and open competion rules.

 

 

We have 2 of the 3 possible results in our favour. A 0-0 sees us through now.

[Saint_clark]

Someone want to post up a summary of what happened in the court room/what it means?

I'm a bit retarded.

[Micky]

I wonder if LLS will be at SMS at the weekend checking out his latest 'venture'...? Keep your eyes on the directors box people...

[Torres]

Someone want to post up a summary of what happened in the court room/what it means?

I'm a bit retarded.

 

Pompey said "We don't owe any money and even if we did, we can pay"

 

Everyone else laughed at them.

[S-Clarke]

Someone want to post up a summary of what happened in the court room/what it means?

I'm a bit retarded.

 

basically (my take on it) the judge agreed that they were illegally trading whilst insolvent.

 

...but they have been given 7 (working) days to produce financial documentation, on a) a secure/definite takeover or b) actually pay up the remaining HMRC.

 

It was also confirmed that they owe more than Pompey claimed. Pompey said they only owe 7.5m...but the judge confirmed it is actually 11.5m!

 

if they don't come up with the goods in 7 days, that really is it - the judge has done them in a favour in many ways and has already agreed they are insolvent.

 

I feel though that this 7 days will give them a lifeline and will allow them to secure the takeover that they need. They'll be relegated..that's for sure, but they'll be ok after that IMO.