Council loan

[CAVALIER]

Heard from a very reliable source that we have not paid this months instalment. If we have sold the number of season tickets as told to us by the club then surely we should have no problem in meeting this? Furthermore, if true and I have no reason to doubt the source then what will this cost us?

[Howjy04]

Heard from a very reliable source that we have not paid this months instalment. If we have sold the number of season tickets as told to us by the club then surely we should have no problem in meeting this? Furthermore, if true and I have no reason to doubt the source then what will this cost us?

 

But Bratty says we always pay the bills on time.

[Bede]

Potential loss of ownership of the ground to the council as per the default arrangements. Doesn't the interest increase or something?

[VantaaVale]

Let's see if Micky gets paid on time. That's £10K / month also.

[melv]

Need to know how true this is before people get too excited.IF it is true then could the council call in the loan?

[Stevo]

Maybe they spent that 13k on Euromillions lotto tickets

[Jacko51]

Potential loss of ownership of the ground to the council as per the default arrangements. Doesn't the interest increase or something?

 

Interest on the outstanding payment increases if this is true. The relevant bit of the T&Cs is here:

 

6.2 Default Interest

6.2.1 If the Club fails to pay any amount payable under this Agreement on the due date. it shall

pay interest to the Council on the overdue amount from the due date to the date of actual

payment (both before and after jUdgment) calculated at the Default Rate

[Santa]

13 DEFAULT

13.1 Default Each of the events specified in Clause 13.2 to 13.15 (inclusive) shall be an Event of Default.

13.2 Non-payment

The Club does not pay any amount of principal or interest payable by it under this Agreement at the time, or within 10 Business Days of the time, at the place and in the currency and funds in which it is expressed to be payable

13.3 Breach of undertakings

13.3.1 The Club fails duly and punctually to comply with its obligation to provide Community

Facilities in accordance with its Annual Community Facilities Plan under Clause 12.31

13.3.1 The Club does not perform or fails duly and punctually to comply with any one or more of its obligations set out or referred to in this Agreement and/or the Club Debenture and such failure to perform or comply has a Material Adverse Effect and, if in the Council’s reasonable opinion the circumstances giving rise to the failure are capable of being remedied or the obligations capable of being performed, they are not remedied or performed within 20 Business Days of written notice from the Council requiring remedy.

GG Ref: -91359744

13.4 Breach of representation or warranty

Any representation, warranty or statement made or deemed to be repeated by the Club in any document delivered by or on behalf of the Club under or in connection with any this Agreement and/or the Club Debenture is incorrect when made or deemed to have been repeated (and, if it is incorrect on being repeated, that has a Material Adverse Effect).

13.5 Unlawfulness

13.5.1 It is or becomes unlawful or impossible for the Club to perform or comply with any one or more of its obligations under this Agreement and/or the Club Debenture or any Consent and that has a Material Adverse Effect.

13.5.2 Any Consent (or any provision of any of them) is required by any regulation having the force of law to be waived, amended, modified or abandoned and the waiver, amendment, modification or abandonment has a Material Adverse Effect.

13.6 Attachment or distress

A creditor or any other person attaches or takes possession of, or a distress, diligence, inhibition, execution, sequestration or other process is levied or enforced upon or sued out against, any of the assets of the Club and such process is not discharged within 15 Business Days and has a Material Adverse Effect

13.7 Enforcement of security Any Encumbrance over the assets of the Club becomes enforceable

13.8 Inability to pay debts

The Club proposes or enters into any composition or other arrangement for the benefit of its creditors generally or any class of creditors; or it becomes apparently insolvent; or it grants a trust deed for the benefit of its creditors

13.9 Insolvency, etc 13.9.1 The Club takes any action for:

(a) the suspension of any repayments of all or any of its indebtedness; or

(b) the composition or re-negotiation of any of its indebtedness;

© the winding-up or dissolution of the Club (other than in connection with a solvent reconstruction, the terms of which have been previously approved in writing by the Council, such approval not to be unreasonably withheld or delayed); or

(d) the appointment of a trustee, receiver, administrative receiver, administrator, liquidator, compulsory manager or similar officer in respect of any of its assets.

13.9.2 Any adjudication, order or, as the case may be, appointment is made under or in relation to any of the proceedings referred to in Clause 13.9.1

13.9.3 An application is made to the court for an administration order under the Insolvency Act 1986 with respect to the Club

13.10 Cessation of business GG Ref: -91359744

13.11 The Club suspends, ceases or threatens to suspend or cease to carry on all or a substantial part of its business Industrial action etc Any strike or industrial action continues for 60 days and has a Material Adverse Effect

13.12 Consents

Any Consent required at any time is not obtained, is revoked or otherwise ceases to be in full force and effect or is amended, varied, supplemented or restricted in any material respect of any material condition in or relating to any such Consent is not complied with (unless that Consent or condition is no longer required or applicable) and any such event has (in each case) a Material Adverse Effect.

13.13 Litigation

Any litigation, arbitration or administrative proceeding is commenced against the Club and in the reasonable opinion of the Council could be expected to be determined adversely and, if so determined, has a Material Adverse Effect.

13.14 Material adverse change

Any event or series of events occurs or circumstances (excluding any events or circumstances referred to in any other of the provisions of this Clause 13) arise which has a Material Adverse Effect..

Insurances

13.15 The failure by the Club to procure the Insurances in accordance with the terms of this Agreement

Acceleration

13.16 If an Event of Default occurs and is continuing unremedied or unwaived, the Council may, by notice to the Club cancel the Facility and require the Club immediately to repay the Term Loan together with accrued interest and all other sums payable under this Agreement, whereupon they shall become immediately due and payable. Upon the service of any such notice, the Council’s obligations under this Agreement shall be terminated and the Commitment shall be cancelled and reduced to zero.

[Bede]

Can you explain that in more detail, Santa?!

[CAVALIER]

Its true Melv

[Santa]

Well, if any of the stuff in that list happens up until the last bit, then the last bit will happen.

[melv]

Its true Melv

 

In which case the following consequences could be costly and dire for Virus 2001.

[Jacky Noff]

Well, if any of the stuff in that list happens up until the last bit, then the last bit will happen.

 

Thanks for clearing that up.

[Jacko51]

Interest on the outstanding payment increases if this is true. The relevant bit of the T&Cs is here:

 

6.2 Default Interest

6.2.1 If the Club fails to pay any amount payable under this Agreement on the due date. it shall

pay interest to the Council on the overdue amount from the due date to the date of actual

payment (both before and after jUdgment) calculated at the Default Rate

 

This is the default rate:

 

"Default Rate" means the higher of 9.5% per annum and 5.5% per annum above the base

lending rate of the Council's Principal Bankers from time to time:"

 

So a minimum of 9.5%.

[Stevo]

This is the default rate:

 

"Default Rate" means the higher of 9.5% per annum and 5.5% per annum above the base

lending rate of the Council's Principal Bankers from time to time:"

 

So a minimum of 9.5%.

 

What rate applies before defaulting on payments?