Administration: pros and cons?

[Fosse69]

not sure if you missed my question LB in relation to your opening post

 

Without knowing the financial and contractual situation, nobody is going to come into the club. It appears to be in a very bad state, so that admin is the most likely economical route.

[For Us All]

I very much doubt that many years of mis-management can be reversed and the actions of a group of self-preserving individuals will lead to admin.

[Yukon]

If you mean 'liquidation' BHF ,it means the end of a company.Administration is different in that a new buyer is sort after.Other people on OVF may explain it better but I believe that to be correct.

 

Administration involves an appointed administrator reducing the debts to the satisfaction of the club and it's creditors. This could involve cutting staff, agreeing a reduction in monies owed, sale of assets etc. My concern would be the loss of Vale Park, in order to satisfy the loan from the council. I seriously don't think admin is the way to go for us, for that very reason

[AVIM]

Micky and most of the senior (read higher wage) players would be given the the boot by the administrator?

[NLVMalc]

Sadly, I do not believe there is any good to come of this situation one way or the other.

 

A clean sweep is absolutely necessary. None of the current board or ex-directors can be allowed anywhere near the decision making process. An interim board needs to to be allowed to look at the whole situation and see if anything can be salvaged or a deal done and put it to the shareholders.

 

If a removal of the 24.9% is not forthcoming then I think admin will be the only option. That said it may be the only option anyway.

[TheLegalBeagle]

not sure if you missed my question LB in relation to your opening post

 

Hi OBTB,

 

In my opinion - Yes - if the Articles are altered in order to allow and encourage meaningful ownership/control/investment, then this would certainly strike the right chord with Mo - but of course there are also all of the other issues to consider in terms of the financial viability of the business in its present state.

 

I am sure a united front by the fans and shareholders would go a long way to reassuring Mo that PVFC is worthy of serious consideration.

 

Regards

[TheLegalBeagle]

Administration involves an appointed administrator reducing the debts to the satisfaction of the club and it's creditors. This could involve cutting staff, agreeing a reduction in monies owed, sale of assets etc. My concern would be the loss of Vale Park, in order to satisfy the loan from the council. I seriously don't think admin is the way to go for us, for that very reason

 

Hi Yukon,

 

I am confident this could be avoided in any negotiation with the administrator.

 

Regards

[the old bycars tea bar]

thanks lb

 

after seeing that the board have remortgaged the club to pay for deakin and millers shares then i feel mo's good intentions have gone through the window thanks anyway:(:(

[Fosse69]

thanks lb

 

after seeing that the board have remortgaged the club to pay for deakin and millers shares then i feel mo's good intentions have gone through the window thanks anyway:(:(

Have they done it legally with the agreement of the council? Is Stan Meigh in on this?

[fairportnick]

thanks lb

 

after seeing that the board have remortgaged the club to pay for deakin and millers shares then i feel mo's good intentions have gone through the window thanks anyway:(:(

 

The simple fact is that the company CANNOT pay for an individuals shares out of its own funds without making an illegal loan them. If they wanted to buy shares they should have taken out personal borrowings. I wouldnt be surprised if this loan paid wages etc.

[the old bycars tea bar]

The simple fact is that the company CANNOT pay for an individuals shares out of its own funds without making an illegal loan them. If they wanted to buy shares they should have taken out personal borrowings. I wouldnt be surprised if this loan paid wages etc.

 

your prob right nick, don't think many of us are thinking straight at the moment

[TheLegalBeagle]

The simple fact is that the company CANNOT pay for an individuals shares out of its own funds without making an illegal loan them. If they wanted to buy shares they should have taken out personal borrowings. I wouldnt be surprised if this loan paid wages etc.

 

Hi Fairportnick,

 

I agree. I suspect the mortgage was to raise cash given immediate needs/requirements - salary, creditors etc

 

The directors cannot mortgage company assets to pay for the share purchase of individuals.

 

Regards

[Andyregs]

Hi Fairportnick,

 

I agree. I suspect the mortgage was to raise cash given immediate needs/requirements - salary, creditors etc

 

The directors cannot mortgage company assets to pay for the share purchase of individuals.

 

Regards

 

They can't have more than 24.9% together. They can't have another loan due to the council loan terms. It hasn't stopped them. And so it wouldn't surprise me.

[Another shropshire valiant]

As I have said in a previous post, we need a total clean sweep of the club, I would imagine that there is a lot of nasties lurking in the books (which is why they would not let Mark Simms have a decent look at them) and the club will need totally rebuilding and whilst it would certainly put paid to this and possible next season administration would be the best route to secure the long term future of the club......the club will survive just maybe not in its current guise or location.....and I will still be a supporter ===

[Howjy04]

Is it me ,or is it too difficult to get a loan/ re- mortgage,pay yourself the money and then ****off with it?