Pompey Takeover Saga

[Goalie66]

my take

 

1) to test validity of secured creditor status at time of winding order

2) more general ongoing challenge to the footballing debts rule (which maybe one more for future clubs.

 

So what is the likely outcome?

 

1 Winding up likely but not tomorrow

2. Continue Admin but with further hearings from HMRC (which makes then totally unsaleable)

3. New term Limboadmin or Frattonad. Neither wound up or in Admin but continue to provide hilarious material for everone

[hutch]

So, if the HK chap took over 90% of the shares then he can't be a secured creditor and if he changed the charge to against a fix asset (FP) after the WUP was issued he can't place them in voluntary administration?

The first reference I saw to the registered charges was in a David Conn article in the Grauniad. He definately stated that the fixed charge over the stadium was registered in Oct/Nov, before the WUP. The floating charge was definately registered in January, after the WUP.

[Weston Super Saint]

Ouch

 

What would happen IF the Court Case was cancelled due to a dodgy Admin process?

 

Talk about Contempt of Court.

 

Farewell Mr Andriod as well.

 

Now, if only I knew someone who was the World's best Computer Hacker and I could find a disgruntled maybe not sure yet possibly a former employee. (Saw that one on Burn Notice)

 

Jeez, you really are Walter Mitty aren't you!!

[dubai_phil]

why didn't pompey simply consolidate their debts into ''one easily affordable monthly payment''?

 

What was the point?

 

The world is full of Billionaires. There is no global financial crisis. We are a PL team. We have the gratest (sic) fans in the world, and OF COURSE we will be taken over within 24 hours. :smt036

[dubai_phil]

Jeez, you really are Walter Mitty aren't you!!

 

Obviously you've never watched Burn Notice. Michael Westen is most entertaining

[View From The Top]

The first reference I saw to the registered charges was in a David Conn article in the Grauniad. He definately stated that the fixed charge over the stadium was registered in Oct/Nov, before the WUP. The floating charge was definately registered in January, after the WUP.

 

 

Yet, looking at the info GM posted, the charge from last Autumn would to be appear to be against 90% of the shares of the company and this is where I'm getting really confused.

[hutch]

http://www.guardian.co.uk/sport/david-conn-inside-sport-blog/2010/feb/03/portsmouth-mark-jacob-premier-league

 

"

The Hong Kong businessman Balram Chainrai, who has links with the Israeli businessmen connected to Faraj, has loaned what the club said amounted to £20m and has two mortgages over the club. One, registered on 6 October, gives Chainrai's company Portpin, which is registered in the British Virgin Islands tax haven, security over Fratton Park. The other, registered on 7 January, secures for Portpin "the whole of [Portmouth's] undertaking and all its property and assets"

."

[Weston Super Saint]

Obviously you've never watched Burn Notice. Michael Westen is most entertaining

 

Clearly I've never watched any film and thought I was actually the leading character, unlike you

[St Chalet]

Chalet,

 

Is that PCFC Ltd.?

 

or PCFC (in administration) Ltd.?

 

or PCFC (maybe in administration, we're not sure) Ltd.?

 

According to Companies House, they are not trading as in administration.

http://wck2.companieshouse.gov.uk/6d602b08ac5ad555d5b9d674b372510d/compdetails

Although CH are not real-time.

 

The winder that HMRC are presenting is still against PCFC Ltd.

 

Potentially the revenue might also question whether Chanrai ever put in £17m to justify the charge on two grounds:

 

a) Sneaky bit coincidental that is the amount Gheyderdad owes him

b) It's a ****hole in a sess pit

c) What did they spend it on? It wasn't their taxes.

[Pugwash]

Was this link ever posted? Just checked their web site. His details have been removed

 

http://www.guardian.co.uk/football/2010/feb/26/portsmouth-mark-jacob-ali-al-faraj

 

The timing is the thing. Jacob apparently left on close-of-play on Thursday. So would he have any authority to act (and for who?) in the administration process that completed on the Friday?

[St Chalet]

PS If anyone has an account with Companies House they can look up who has what and exact charges against the company for about a £1 or 2.

[Sheaf Saint]

why didn't pompey simply consolidate their debts into ''one easily affordable monthly payment''?

 

Personal loans at 279% APR, only from Kneecap Finance

[Guided Missile]

The first reference I saw to the registered charges was in a David Conn article in the Grauniad. He definately stated that the fixed charge over the stadium was registered in Oct/Nov, before the WUP. The floating charge was definately registered in January, after the WUP.

The points here, I think, are as follows:

 

Falcondrone borrows £17M from Portpin which is secured by the shares, Falcondrone own, representing 90% of the share capital of Portsmouth City Football Club.

 

Additionally, Portpin registers a charge on Fratton Park, owned by Portsmouth City Football Club.

 

Falcondrone fails to repay Portpin so Portpin takes ownership of the shares in Portsmouth City Football Club.

 

Portpin charge is satisfied by share transfer.

 

Fratton still owned by Portsmouth City Football Club because Falcondrone borrowed the money from Portpin, not PCFC which is not in default for the original £17M. It was Falcondrone.

 

Chanrai/Portpin is thus not a creditor of PCFC, but the majority shareholder.

 

The additional charge on every asset, current and future of PCFC was registered by Marc Jacobs on the 6th January, when he realised that Chanrai/Portpin were exposed. Fuglers realise that Marc Jacobs has done something that is dodgy, whilst under a court order, following the WUO and they fire him.

 

HMRC want to see the loan instruments that were deposited with Companies House that make Chanrai/Portpin think he/they can march into the sweetshop and empty the till...

 

All pure conjecture...

[Shrek]

The points here, I think, are as follows:

 

Falcondrone borrows £17M from Portpin which is secured by the shares, Falcondrone own, representing 90% of the share capital of Portsmouth City Football Club.

 

Additionally, Portpin registers a charge on Fratton Park, owned by Portsmouth City Football Club.

 

Falcondrone fails to repay Portpin so Portpin takes ownership of the shares in Portsmouth City Football Club.

 

Portpin charge is satisfied by share transfer.

 

Fratton still owned by Portsmouth City Football Club because Falcondrone borrowed the money from Portpin, not PCFC which is not in default for the original £17M. It was Falcondrone.

 

Chanrai/Portpin is thus not a creditor of PCFC, but the majority shareholder.

 

The additional charge on every asset, current and future of PCFC was registered by Marc Jacobs on the 6th January, when he realised that Chanrai/Portpin were exposed. Fuglers realise that Marc Jacobs has done something that is dodgy, whilst under a court order, following the WUO and they fire him.

 

HMRC want to see the loan instruments that were deposited with Companies House that make Chanrai/Portpin think he/they can march into the sweetshop and empty the till...

 

All pure conjecture...

 

Hmm, conjecture, but it all adds up...

[View From The Top]

The points here, I think, are as follows:

 

Falcondrone borrows £17M from Portpin which is secured by the shares, Falcondrone own, representing 90% of the share capital of Portsmouth City Football Club.

 

Additionally, Portpin registers a charge on Fratton Park, owned by Portsmouth City Football Club.

 

Falcondrone fails to repay Portpin so Portpin takes ownership of the shares in Portsmouth City Football Club.

 

Portpin charge is satisfied by share transfer.

 

Fratton still owned by Portsmouth City Football Club because Falcondrone borrowed the money from Portpin, not PCFC which is not in default for the original £17M. It was Falcondrone.

 

Chanrai/Portpin is thus not a creditor of PCFC, but the majority shareholder.

 

The additional charge on every asset, current and future of PCFC was registered by Marc Jacobs on the 6th January, when he realised that Chanrai/Portpin were exposed. Fuglers realise that Marc Jacobs has done something that is dodgy, whilst under a court order, following the WUO and they fire him.

 

HMRC want to see the loan instruments that were deposited with Companies House that make Chanrai/Portpin think he/they can march into the sweetshop and empty the till...

 

All pure conjecture...

 

Now I get it, thanks for that.

[OldNick]

Pompey will get away with it

[Channon's Sideburns]

The points here, I think, are as follows:

 

Falcondrone borrows £17M from Portpin which is secured by the shares, Falcondrone own, representing 90% of the share capital of Portsmouth City Football Club.

 

Additionally, Portpin registers a charge on Fratton Park, owned by Portsmouth City Football Club.

 

Falcondrone fails to repay Portpin so Portpin takes ownership of the shares in Portsmouth City Football Club.

 

Portpin charge is satisfied by share transfer.

 

Fratton still owned by Portsmouth City Football Club because Falcondrone borrowed the money from Portpin, not PCFC which is not in default for the original £17M. It was Falcondrone.

 

Chanrai/Portpin is thus not a creditor of PCFC, but the majority shareholder.

 

The additional charge on every asset, current and future of PCFC was registered by Marc Jacobs on the 6th January, when he realised that Chanrai/Portpin were exposed. Fuglers realise that Marc Jacobs has done something that is dodgy, whilst under a court order, following the WUO and they fire him.

 

HMRC want to see the loan instruments that were deposited with Companies House that make Chanrai/Portpin think he/they can march into the sweetshop and empty the till...

 

All pure conjecture...

 

Guided Missile strikes again ;-)

 

Bet that post sent a shiver down Mikey Wilde's spine.

 

In fact, someone should post that on the Skate sites.......wait for 48 hours before they go 'DOH!'

[Bobbyboy]

Pompey will get away with it

It's kind of the opposite of Danny Baker's thing of standing up while winning 2-0 and saying "NOTHING can go wrong now!!!"

 

Stick at it Nick. You'll bring them down yet.

[Channon's Sideburns]

Pompey will get away with it

 

I see what you did there...MysticNick....

[OldNick]

'He's a witch burn him'

........only kidding...but my wife was born on halloween and she is a saints fan......you should see our kitchen on oct 31 it's bedlem you cant move for newts, half cut up toads and bats

[Guided Missile]

A what if....

 

...IF some mug had offered Chanrai £25M for 90% of Portsmouth City Football Club, he would have taken it. He would hardly have claimed an additional £10M for the charge he had on Fratton....so, while they were in negotiation, the shares he was offering for sale, he was saying, were worth more than the £17M he was owed.

 

As Storrie said on the 5th February, "Any purchaser of Pompey would be acquiring a bargain. "It's certainly good value. The club will go for nothing. The new owner would, though, have to take on the debt, and excluding the money owed to Sacha Gaydamak, the debts are down to £25m, and most of those are normal footballing debts."

 

Just because the shares you took as security for the £17M loan are now worth f*** all because you placed the company in administration is your fault. You should have got a better lawyer than Marc Jacob to negotiate the security...

[Channon's Sideburns]

'He's a witch burn him'

........only kidding...but my wife was born on halloween and she is a saints fan......you should see our kitchen on oct 31 it's bedlem you cant move for newts, half cut up toads and bats

 

I hear that's a three course meal in some parts.....kind of an aperatif to some fish action.

[hutch]

That's quite appealing, GM, but still leaves a couple of unanswered points (for lack of accurate information)

 

1. If the shares were worth less than the overdue and payable debt, then Portpin would, IMO, be entitled to call in other security until satisfied, but

 

2. Was Falcondrone (if it was indeed the borrower) entitled to put FP, which was owned by PCFC Ltd., up as security?

 

I think what we'll see tomorrow is that the administrator's wings will be severely clipped pending further legal submission and argument. Quite where that leaves their team in the meantime is anybody's guess.

[sidthesquid]

No, I've booked a first-class return to Manchester :mad:

 

I think you'll find Tranmere's in Liverpool......

[dubai_phil]

Clearly I've never watched any film and thought I was actually the leading character, unlike you

 

It's a TV series but never mind. If I had not previously mentioned the series and the character a couple of times as being the perfect candidate for helping us ensure we got rid of the few then your dig may have had some validity, but I referenced the show so you just got it wrong again.

 

Never mind come down to the Forum match and I'll buy you a beer

[OldNick]

That's quite appealing, GM, but still leaves a couple of unanswered points (for lack of accurate information)

 

1. If the shares were worth less than the overdue and payable debt, then Portpin would, IMO, be entitled to call in other security until satisfied, but

 

2. Was Falcondrone (if it was indeed the borrower) entitled to put FP, which was owned by PCFC Ltd., up as security?

 

I think what we'll see tomorrow is that the administrator's wings will be severely clipped pending further legal submission and argument. Quite where that leaves their team in the meantime is anybody's guess.

its great reading some of these 2 way debates, a bit confusing but great stuff.Hutch Im not sure quite how you stand on their chances

[dubai_phil]

'He's a witch burn him'

........only kidding...but my wife was born on halloween and she is a saints fan......you should see our kitchen on oct 31 it's bedlem you cant move for newts, half cut up toads and bats

 

Did shomeone menshion Newts? Hic

[Channon's Sideburns]

A what if....

 

...IF some mug had offered Chanrai £25M for 90% of Portsmouth City Football Club, he would have taken it. He would hardly have claimed an additional £10M for the charge he had on Fratton....so, while they were in negotiation, the shares he was offering for sale, he was saying, were worth more than the £17M he was owed.

 

As Storrie said on the 5th February, "Any purchaser of Pompey would be acquiring a bargain. "It's certainly good value. The club will go for nothing. The new owner would, though, have to take on the debt, and excluding the money owed to Sacha Gaydamak, the debts are down to £25m, and most of those are normal footballing debts."

 

Just because the shares you took as security for the £17M loan are now worth f*** all because you placed the company in administration is your fault. You should have got a better lawyer than Marc Jacob to negotiate the security...

 

How about adding to the murkiness a little more.......

 

What about the earlier post (I think it was this year ;-) ) about the footballing authorities looking into the various transfers between Poopey and Spurs..

 

Would be interesting to see the transfers made when Mr Jacobs joined PFC...just a thought.

[OldNick]

It's a TV series but never mind. If I had not previously mentioned the series and the character a couple of times as being the perfect candidate for helping us ensure we got rid of the few then your dig may have had some validity, but I referenced the show so you just got it wrong again.

 

Never mind come down to the Forum match and I'll buy you a beer

WSS is a publican so i doubt he ever drinks. Lol

Good idea that you join us though WSS.

[Tractor_Saint]

Did they turn up in court today to tell the judge that they had gone into administration? Sounds like they were so up their ar3e that they didn't tell them officially and, therefore, they are in court tomorrow as the judge was sat waiting for them to turn up today. Administrator error ? What great news to end the day. Mine's a pint.

[dubai_phil]

That's quite appealing, GM, but still leaves a couple of unanswered points (for lack of accurate information)

 

1. If the shares were worth less than the overdue and payable debt, then Portpin would, IMO, be entitled to call in other security until satisfied, but

 

2. Was Falcondrone (if it was indeed the borrower) entitled to put FP, which was owned by PCFC Ltd., up as security?

 

I think what we'll see tomorrow is that the administrator's wings will be severely clipped pending further legal submission and argument. Quite where that leaves their team in the meantime is anybody's guess.

 

Going back about 200 or so pages, it was mentioned that there were reports that Sultan Bin Trump took control for one pound. However, the actual transfer of the pound and the paperwork was not completed when he "became" the owner. There was some talk that the shares may have been transferred but the physical one pound never got linked to it.

 

At the time my "family member working in The City" mentioned it.

 

The mess could be even funnier the actual sales of the club's shares may not have been completed properly and none of Chanrai's actions could be valid.

[OldNick]

Going back about 200 or so pages, it was mentioned that there were reports that Sultan Bin Trump took control for one pound. However, the actual transfer of the pound and the paperwork was not completed when he "became" the owner. There was some talk that the shares may have been transferred but the physical one pound never got linked to it.

 

At the time my "family member working in The City" mentioned it.

 

The mess could be even funnier the actual sales of the club's shares may not have been completed properly and none of Chanrai's actions could be valid.

GM or whoever needs Charles sale to learn this lol

[dubai_phil]

GM or whoever needs Charles sale to learn this lol

 

It was an allegation. It was commented on at the time. The source was someone who would have known the process and the situation and was involved in providing service to the club.

 

My reaction at the time was that nobody could be that stupid. But then that was before I researched SBT and before we learnt more about Storie.

 

It would be an interesting question to pose the investigators.

 

Is there any evidence that Sultan Bin trump actually paid his one pound for the ownership of the club? Was that paid into petty cash or was it done by TT from his great wealth in wherever it is this week? Did he in fact even HAVE one pound to be able to pay?

 

Did Al Faraj physically pay SBT 90 pence for his shares? Is there proof he existed on a receipt?

 

But what could be funnier is the simple fact that our greatest rivals could be undone by research carried out on the web and an email sent to the press. I don't care if it's true, just the thought of it makes me ROFL

[pedg]

I am sure that everything was done properly and by the book at pompey and their fans have nothing to worry about......

 

Accountant Nick O'Reilly, from the Vantis company who examined Pompey's books for the High Court, last week labelled them "completely dysfunctional" and that the business had gone against "all good governance."

[St Chalet]

The Charge Deed is on Fratton Park freehold only and is against PCFC and presented by Fuglers.

 

Created on 06/10/2009 it gives Portpin Limited as Mortgagee.

[saint_stevo]

Anyone know how to cancel an eBay bid? I bid on a Mickey Mouse outfit for my nephew and I'm now minutes away from owning Pompey

[aintforever]

From what I understand I think what we're seeing here is the Premier League's (and football in general's) "football creditors first" rule coming back to bite them on their ass.

 

Football is awash with money and the governing body insisting on Muntari and co getting their full 80k a week at the expense of the tax man and other small businesses is just plain wrong. As a result of the Premier League's greed they will probably see one of their clubs fold and their competition thrown into chaos.

 

It wouldn't surprise me if pompey fold and from now on the football governing bodies will make paying the tax man in full vital if a club wants to get the golden share.

[Fowllyd]

A what if....

 

...IF some mug had offered Chanrai £25M for 90% of Portsmouth City Football Club, he would have taken it. He would hardly have claimed an additional £10M for the charge he had on Fratton....so, while they were in negotiation, the shares he was offering for sale, he was saying, were worth more than the £17M he was owed.

 

As Storrie said on the 5th February, "Any purchaser of Pompey would be acquiring a bargain. "It's certainly good value. The club will go for nothing. The new owner would, though, have to take on the debt, and excluding the money owed to Sacha Gaydamak, the debts are down to £25m, and most of those are normal footballing debts."

 

Just because the shares you took as security for the £17M loan are now worth f*** all because you placed the company in administration is your fault. You should have got a better lawyer than Marc Jacob to negotiate the security...

 

A quick addendum to the last point: I had a look at Fuglers' web site just as the news of Jacob leaving came out, and his profile was still there. I noticed that his legal specialisation was property, which is quite some way from corporate and commercial law. If he did indeed use his status as a practising solicitor (feel free to insert your own joke about practice and its necessity here) to draw up the contracts between Falcondrone and Portpin, he should have called for expert advice from a specialist in that field. But even as a property lawyer he should still know what's legally OK and what's not.

 

I also posted at the time that Jacob's departure seemed odd, and that the full story wasn't being told. I think GM's got as close as anyone's going to...

[Tractor_Saint]

Anyone know how to cancel an eBay bid? I bid on a Mickey Mouse outfit for my nephew and I'm now minutes away from owning Pompey

 

I like it!

[St Marco]

So what actually happens then at this court hearing? Is it to see if they can or can't go into admin?

 

If they can't then i guess that means they get liquidated?

 

Either way think it is pretty safe to assume HMRC won't be signing the CVA which means more points deductions next season.

[St Chalet]

The other interesting piece is that Fuglers, on the document, appear to be acting for Portpin Ltd. They use their registered address as the c/o for Portpin.

 

Now at the time wasn't Jacobs work for Ali and therefore PCFC. A conflict on interest?

 

Feel free to forward this to Charlie Sale

[CB Saint]

What a great read - I have laughed non stop for half an hour.

 

Pompey are hanging onto the edge od the cliff by their finger tips and the taxman is stamping on their hands.

 

AAAAHHH HA HA HA HA

[Guided Missile]

A quick addendum to the last point: I had a look at Fuglers' web site just as the news of Jacob leaving came out, and his profile was still there. I noticed that his legal specialisation was property, which is quite some way from corporate and commercial law. If he did indeed use his status as a practising solicitor (feel free to insert your own joke about practice and its necessity here) to draw up the contracts between Falcondrone and Portpin, he should have called for expert advice from a specialist in that field. But even as a property lawyer he should still know what's legally OK and what's not.

Is this what you saw?:

 

Mark Jacob

 

Mark graduated in government and politics from Essex university, he then proceeded to study for his common professional examination and law finals. Having qualified in 1994 Mark has specialised in commercial property and acts for property companies, high net worth individuals and foreign investors. Mark also specialises in secured lending and has acted for several major banking institutions.

 

Away from the office, Mark is a keen footballer and keeps himself in shape by frequenting the gym at least twice a week. Mark is also a keen watcher of all sports including of course football and in particular his beloved Spurs. Indeed in 1999 Mark had a book about Spurs published which made The Sunday Times bestseller sports publications list for several weeks.

[Gingeletiss]

I'm not even going to say that I told you so...but I told you so!!!!. Not in the detailed way that GM has stated, but it was clear, that he couldn't be a secured creditor, and the owner, something was askew.

 

I begged the question last week, as to if the HMRC had another card to play, and was shot down by a certain someone. So it seems, that they do in fact have something up their sleeves, tomorrow 1030hrs then peoples;)

[sidthesquid]

As a total irrelevance I was watching Inside Out with my other half, who has no interest in football whatsoever, when TCWTB came on singing, Portsmouth till I die, whereupon she muttered, 'I wish he'd hurry up about it.'

Made me laugh anyway.....

[dubai_phil]

Many many years ago an a**hole called Sarbanes-Oxley made my life in Corporate Land absolute hell.

 

Every single moment of every day we had a flood of Lawyers telling us how to answer the phones and how to keep records.

 

The reality was that "Corporate Compliance" moved to the forefront of the life of businessmen across the planet.

 

As companies built the correct legal systems and processes they went through great pain but also went through a tremendous learning experience. S-O actually became the perfect solution for poor management in that it enabled them to cover their arse at all steps in business life.

 

This court case is funny for us, it is no doubt a nightmare for The Few as they seek to find "Someone to Blame", BUT it clearly is time that the ENTIRE PL & FL structure and process implemented their own Corporate Governance and Processes rule book.

 

The day of the Nudge, Nod or Wink, the Brown Envelope have now finally been shown to have gone. Football Clubs must be run with Professional processes. If the Authorities will not act then The Government must.

[pedg]

So if GM etc are correct what will happen tomorrow? Are HMRC doing this just to get their hands on some loan documents that they will use for later court action or is it going to come to a denouement tomorrow? One assumes as well as evidence that chainrai was not allowed to put the club into admin they will present the SoA with claims that it shows the club were trading whilst insolvent. Obviously think that pompey getting away with admin is not going to be enough of a deterrent for the other clubs.

[JackFrost]

Bloke on Sky reported that the PL were going to postpone their meeting tomorrow re the -9 points

[CB Saint]

As a total irrelevance I was watching Inside Out with my other half, who has no interest in football whatsoever, when TCWTB came on singing, Portsmouth till I die, whereupon she muttered, 'I wish he'd hurry up about it.'

Made me laugh anyway.....

 

[Fowllyd]

Is this what you saw?:

 

Mark Jacob

 

Mark graduated in government and politics from Essex university, he then proceeded to study for his common professional examination and law finals. Having qualified in 1994 Mark has specialised in commercial property and acts for property companies, high net worth individuals and foreign investors. Mark also specialises in secured lending and has acted for several major banking institutions.

 

Away from the office, Mark is a keen footballer and keeps himself in shape by frequenting the gym at least twice a week. Mark is also a keen watcher of all sports including of course football and in particular his beloved Spurs. Indeed in 1999 Mark had a book about Spurs published which made The Sunday Times bestseller sports publications list for several weeks.

 

It is indeed. I'd obviously forgotten (or missed) the bit about secured lending, which would make the work at Pompey right up his street! Then again, it gives him even less of an excuse for c*cking it up.