Sale of Southend United to Justin Rees and his consortium

[Smiffy]

As you say, that information has come from Ron himself and so you will have to forgive those who have decided not to believe a single word of it.

Touché.

 

[WestyReturns]

To be rid of Ron i'd almost taken administration. If it meant the minute we are put into administration then someone else purchases us and removes Ron then I'd take it all day long. Better to do it now with a fair chunk of the season to go rather than leave it until after Christmas.

Is it clear that the National League will only deduct 10 points. Didn't Leeds have -15 back in 2006?

Doesn't force him to sell us back Roots Hall or any other asset. This poisonous situation could continue for years if he's involved at any level.

Good question re points. The NL could decide other options ie kick us out. I'm sure they won't hold us in favour after recent times.

 

[West Stand]

13.A.1 If an Insolvency Event shall occur in relation to any Club that Club shall be deducted 10 (ten) points.

13.A.5 For the avoidance of doubt, where a Club is subject to more than one Insolvency Event (for example Administration followed by a Company Voluntary Arrangement), the Club shall only be deducted one set of 10 points, such deduction to apply with effect from the first Insolvency Event.

I have no idea why RM didn’t at least apply for a CVA months ago. Yes it would have come with a 10 point deduction but it would have left him options he would otherwise not have

Administration comes with so many potential pitfalls

 

[Grayson]

13.A.1 If an Insolvency Event shall occur in relation to any Club that Club shall be deducted 10 (ten) points.

13.A.5 For the avoidance of doubt, where a Club is subject to more than one Insolvency Event (for example Administration followed by a Company Voluntary Arrangement), the Club shall only be deducted one set of 10 points, such deduction to apply with effect from the first Insolvency Event.

I'm not good at interpreting this, but does this mean our -10 is the maximum extent of our penalty under their rules?

Our first insolvency event has seen us deducted 10 points and so they cannot deduct further sets of 10?

If that's the case, could that explain a lack of urgency from Ron now?

I may be chatting ****, hoping somebody with better legal/comprehension skills can unpick it.

 

[West Stand]

I'm not good at interpreting this, but does this mean our -10 is the maximum extent of our penalty under their rules?

Our first insolvency event has seen us deducted 10 points and so they cannot deduct further sets of 10?

If that's the case, could that explain a lack of urgency from Ron now?

I may be chatting ****, hoping somebody with better legal/comprehension skills can unpick it.

Havent entered any insolvency event yet so enter one and that will come with another 10 point deduction

 

[hlane17]

As you say, that information has come from Ron himself and so you will have to forgive those who have decided not to believe a single word of it.

I discussed this with a couple fans yesterday.

The rat will sprinkle truth in amongst the lies or vice versa, and he will follow up on some of what he says he'll do.

He then turns around and says 'I told you so' trying to make everyone look/feel stupid for not believing him.

Textbook manipulation to control the narrative surrounding the club and his intentions.

It's very effective in pulling the wool over the eyes of those who interact less with him, particularly the national media. E.g. TalkSport.

 

[Smiffy]

If Administration is an option (It appears it is, but it's all very cloudy on how, when and what it would entail) Another minus 10 points is certain, however.

Genuine question and taking my Shrimper hat off for a moment, If I was interested in buying the club as is right now, what motivation is there to do a deal right now, rather than say wait a few weeks and attempt to take it out of Administration with a hell of a lot less liabilities on the balance sheet?

I'm just trying to see why the Aussie would be keen to get it done before Oct 4th. From a business perspective, does it make sense to wait? From a moral point of view I get it, obviously lots of local businesses would not be getting their money back amongst other awful knock-ons.

Simon Jordan was pretty much saying similar on Talksport as well and seemed surprised admin hasn't been initiated already.

 

[Cricko]

If Administration is an option (It appears it is, but it's all very cloudy on how, when and what it would entail) Another minus 10 points is certain, however.

Taking my Shrimper hat off for a moment, If I was interested in buying the club as is right now, what motivation is there to do it right now, rather than say wait a few weeks and attempt to take it out of Administration with a hell of a lot less liabilities on the balance sheet.

It could be The Rat attempting to buy us out through other prefered creditors including the myriad of debts owed to his other companies. He would lose the debt, **** everybody else off and still be in control.

Those debentures are there for a reason.

 

[West Stand]

If Administration is an option (It appears it is, but it's all very cloudy on how, when and what it would entail) Another minus 10 points is certain, however.

Genuine question and taking my Shrimper hat off for a moment, If I was interested in buying the club as is right now, what motivation is there to do a deal right now, rather than say wait a few weeks and attempt to take it out of Administration with a hell of a lot less liabilities on the balance sheet?

I'm just trying to see why the Aussie would be keen to get it done before Oct 4th. From a business perspective, does it make sense to wait?

Other than not knowing how Administration would turn out then it would make sense to wait .
Again back to my point about a CVA had the required 75% of creditors voted to accept ( HMRC would be very unlikely to vote to accept) then the current company and directors would have retained control and is treated completely differently to a Creditors Liquidation

 

[jphfitz]

If Administration is an option (It appears it is, but it's all very cloudy on how, when and what it would entail) Another minus 10 points is certain, however.

Genuine question and taking my Shrimper hat off for a moment, If I was interested in buying the club as is right now, what motivation is there to do a deal right now, rather than say wait a few weeks and attempt to take it out of Administration with a hell of a lot less liabilities on the balance sheet?

I'm just trying to see why the Aussie would be keen to get it done before Oct 4th. From a business perspective, does it make sense to wait?

We've already had a former CEO suggest Admin is probably the best/only route. Simon Jordan was pretty much saying similar on Talksport as well.

From a pure business perspective I think this is absolutely right and currently where I think it is most likely we end up, probably on 3rd October. We obviously have a lot of creditors though, so by going in to administration that is a lot of important business relationships that are potentially down the pan and not willing to work with the football club in the future certainly in the short term.

Martin is by far the biggest creditor though and continues to hold all the cards in the event of administration probably a big reason for not writing off the debt he is has been promising to do so when we get to this mythical new stadium.

 

[Cricko]

From a pure business perspective I think this is absolutely right and currently where I think it is most likely we end up, probably on 3rd October. We obviously have a lot of creditors though, so by going in to administration that is a lot of important business relationships that are potentially down the pan and not willing to work with the football club in the future certainly in the short term.

Martin is by far the biggest creditor though and continues to hold all the cards in the event of administration probably a big reason for not writing off the debt he is has been promising to do so when we get to this mythical new stadium.

I do wonder where that leaves the 40k Trust loan as he failed to sign a personal guarantee as promised.

 

[Dutch Branch]

I do wonder where that leaves the 40k Trust loan as he failed to sign a personal guarantee as promised.

I’d say it leaves the Trust royally F..ked if this goes tits mare.

 

[jphfitz]

I do wonder where that leaves the 40k Trust loan as he failed to sign a personal guarantee as promised.

It will likely down to the new owner to decide if it’s in their interest to begin with to honour a repayment to the Trust in the event of administration, they obviously wouldn’t duty bound to do so.

I don’t want to get into a legal trap but I think there would be grounds to still potentially enforce the personal guarantee.

 

[Dutch Branch]

It will likely down to the new owner to decide if it’s in their interest to begin with to honour a repayment to the Trust in the event of administration, they obviously wouldn’t duty bound to do so.

I don’t want to get into a legal trap but I think there would be grounds to still potentially enforce the personal guarantee.

Better get it done before the 4th. Even if the club did some how survive and fall into administration under a NOI the administrators wouldn’t recognise the loan unless it’s registered in the company books as a loan.

 

[Wingnut]

Well that’s not going to happen is it

 

[jphfitz]

Better get it done before the 4th. Even if the club did some how survive and fall into administration under a NOI the administrators wouldn’t recognise the loan unless it’s registered in the company books as a loan.

There is a signed loan agreement

 

[bazzashrimper]

It could be The Rat attempting to buy us out through other prefered creditors including the myriad of debts owed to his other companies. He would lose the debt, **** everybody else off and still be in control.

Those debentures are there for a reason.

Very worrying. But would he be allowed to? I presume he would have to pass the fit and proper test, and aren’t taking a club into admin previously and murdering puppies the only checks?

 

[Dutch Branch]

There is a signed loan agreement

Not so bad then

 

[Cricko]

There is a signed loan agreement

Which will mean **** all if we sink.

 

[Smiffy]

From a pure business perspective I think this is absolutely right and currently where I think it is most likely we end up, probably on 3rd October. We obviously have a lot of creditors though, so by going in to administration that is a lot of important business relationships that are potentially down the pan and not willing to work with the football club in the future certainly in the short term.

Martin is by far the biggest creditor though and continues to hold all the cards in the event of administration probably a big reason for not writing off the debt he is has been promising to do so when we get to this mythical new stadium.

Thanks JP and I agree. It just doesn't make sense business wise for a buyer to do a deal before our next court appearance IMO. Morally yes, it is a horrible thought that local businesses would lose out. But if you are a businessman, it's necessary collateral damage unfortunately isn't it?

I'll continue to hold out hope that someone (Be it the Aussie or someone else) puts together an 11th hour rescue package that is acceptable to Ratty. But like you, I fear Administration is perhaps even more likely than a sale now.