Mo Chaudry...Bid or NO bid.

[vale in the blood]

Hes been on holiday hasnt he??.so wouldnt have expected much from him just yet. he will come good im sure.

[DoINotLikeThat]

1) We don't have to pay the council off during admin. The total debt to them of £2.5m can be moved to and be paid by the new company formed, probably on the previous repayment conditions, meaning it's like the original loan all along but with either higher repayment amounts or an extended finish date, and higher interest because of the extra 600k.

 

2) HMRC won't accept a penny less than £140,000. That needs to be paid, and should be as part of a bid.

 

3) Gibraltar can **** off.

 

Since 2003 HMRC lost its prefential creditor status. The Football League's own "football creditor rule" applies so that all football related debts get repaid first such as players' wages, debts to other clubs etc. HMRC will only be repaid however many pence in the pound is left over; the same as all other unsecured creditors. When Portsmouth last went into administration in 2010 they owed HMRC £37 million in unpaid taxes and only ended up having to repay £7 million. As you can imagine though HMRC are getting pretty p****d off with how football is run and are gunning for clubs at the minute. They have challenged the legality of the football creditor rule ands a High Court judgement on this legal issue is imminent. So depending on the outcome of this case Vale may well end up having to cough up the whole lot or get away with a few pence in the pound. I guess the Council may end up in a similar position depending on nature of loan and the nature of any security on the loan.