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Post by gasincider on Sept 14, 2015 13:13:23 GMT
The last paragraph of NH's Evil Post article today makes for interesting reading.
'We are very grateful to MSP for allowing us to restructure the loan, and when we have to pay it back it will be resolved. The club is in no different financial state than it has ever been in. We are no better or worse off than a lot of other clubs'.
Sorry Nick, but if you look back at the accounts raised as you came on board in 2008, our total debt has now increased fourfold. That's before we mention that we are still one division lower in the same time period.
But more to the point, what part of 'the club is in no different financial state than it has ever been in' am I missing here?
Out total debt is now at the same level as the value of the stadium site. In other words we are only a heartbeat away from administration.
As for the MSP loan, the restructuring probably entails the loan no longer having to be repaid at the end of the year, but is now open ended as we don't know if and when the appeal will be heard. Somewhere NH also states that 50% of the loan was to clear the mortgage on the stadium. NO IT WASNT. The mortgage was just under a million according to the accounts. The loan from MSP is for £2.6 million again according to the accounts. Still, what's £600k between lenders?
As long as we continue to repay the 14% interest charged on the loan (that's £30k per month to you and me) they will be happy.
Good business if you can get it. (Bank rate 0.5%)
What also concerns me is not knowing if we are repaying the loan on time. All our other debts are accumulating interest as opposed to being paid off, so if this loan is the same, how much do we now owe MSP Nick?
Heaven help us if we lose the appeal whenever it is heard. |
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Post by Henbury Gas on Sept 14, 2015 13:24:39 GMT
The last paragraph of NH's Evil Post article today makes for interesting reading.
'We are very grateful to MSP for allowing us to restructure the loan, and when we have to pay it back it will be resolved. The club is in no different financial state than it has ever been in. We are no better or worse off than a lot of other clubs'.
Sorry Nick, but if you look back at the accounts raised as you came on board in 2008, our total debt has now increased fourfold. That's before we mention that we are still one division lower in the same time period.
But more to the point, what part of 'the club is in no different financial state than it has ever been in' am I missing here?
Out total debt is now at the same level as the value of the stadium site. In other words we are only a heartbeat away from administration.
As for the MSP loan, the restructuring probably entails the loan no longer having to be repaid at the end of the year, but is now open ended as we don't know if and when the appeal will be heard. Somewhere NH also states that 50% of the loan was to clear the mortgage on the stadium. NO IT WASNT. The mortgage was just under a million according to the accounts. The loan from MSP is for £2.6 million again according to the accounts. Still, what's £600k between lenders?
As long as we continue to repay the 14% interest charged on the loan (that's £30k per month to you and me) they will be happy.
Good business if you can get it. (Bank rate 0.5%)
What also concerns me is not knowing if we are repaying the loan on time. All our other debts are accumulating interest as opposed to being paid off, so if this loan is the same, how much do we now owe MSP Nick?
Heaven help us if we lose the appeal whenever it is heard. You forgot the bit about the appeal costing very little and all costs have been paid |
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Post by pucklegas on Sept 14, 2015 13:27:48 GMT
The last paragraph of NH's Evil Post article today makes for interesting reading.
'We are very grateful to MSP for allowing us to restructure the loan, and when we have to pay it back it will be resolved. The club is in no different financial state than it has ever been in. We are no better or worse off than a lot of other clubs'.
Sorry Nick, but if you look back at the accounts raised as you came on board in 2008, our total debt has now increased fourfold. That's before we mention that we are still one division lower in the same time period.
But more to the point, what part of 'the club is in no different financial state than it has ever been in' am I missing here?
Out total debt is now at the same level as the value of the stadium site. In other words we are only a heartbeat away from administration.
As for the MSP loan, the restructuring probably entails the loan no longer having to be repaid at the end of the year, but is now open ended as we don't know if and when the appeal will be heard. Somewhere NH also states that 50% of the loan was to clear the mortgage on the stadium. NO IT WASNT. The mortgage was just under a million according to the accounts. The loan from MSP is for £2.6 million again according to the accounts. Still, what's £600k between lenders?
As long as we continue to repay the 14% interest charged on the loan (that's £30k per month to you and me) they will be happy.
Good business if you can get it. (Bank rate 0.5%)
What also concerns me is not knowing if we are repaying the loan on time. All our other debts are accumulating interest as opposed to being paid off, so if this loan is the same, how much do we now owe MSP Nick?
Heaven help us if we lose the appeal whenever it is heard. You forgot the bit about the appeal costing very little and all costs have been paid Heard we have negotiated a no win no fee deal, so either the solicitors are confident, or they feel partly responsible? |
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Post by peterparker on Sept 14, 2015 13:33:04 GMT
The last paragraph of NH's Evil Post article today makes for interesting reading.
'We are very grateful to MSP for allowing us to restructure the loan, and when we have to pay it back it will be resolved. The club is in no different financial state than it has ever been in. We are no better or worse off than a lot of other clubs'.
Sorry Nick, but if you look back at the accounts raised as you came on board in 2008, our total debt has now increased fourfold. That's before we mention that we are still one division lower in the same time period.
But more to the point, what part of 'the club is in no different financial state than it has ever been in' am I missing here?
Out total debt is now at the same level as the value of the stadium site. In other words we are only a heartbeat away from administration.
As for the MSP loan, the restructuring probably entails the loan no longer having to be repaid at the end of the year, but is now open ended as we don't know if and when the appeal will be heard. Somewhere NH also states that 50% of the loan was to clear the mortgage on the stadium. NO IT WASNT. The mortgage was just under a million according to the accounts. The loan from MSP is for £2.6 million again according to the accounts. Still, what's £600k between lenders?
As long as we continue to repay the 14% interest charged on the loan (that's £30k per month to you and me) they will be happy.
Good business if you can get it. (Bank rate 0.5%)
What also concerns me is not knowing if we are repaying the loan on time. All our other debts are accumulating interest as opposed to being paid off, so if this loan is the same, how much do we now owe MSP Nick?
Heaven help us if we lose the appeal whenever it is heard. Its complete bollox as last summer NH.was trumpeting the fact we have very little external debt and then subsequently borrowed 2m on a short term loan |
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Post by gasincider on Sept 14, 2015 14:25:31 GMT
Actually peterparker, it was £2.6 million. You're as bad as NH. Even he forgets about the odd £600k:-)
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Post by CheshireGas on Sept 14, 2015 14:48:17 GMT
I would be amazed if a bridging finance company ~ one that lends between two points in time ~ would be prepared to refinance on an open ended basis.
Further any refinance would have been done with a very nice juicy fee to the lenders. Wonder how much that has increased the debt?
Still I suppose it is tax deductible, mind you we don't make any profit to pay tax....
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Post by gasincider on Sept 15, 2015 7:50:38 GMT
You are of course right Cheshiregas. I was thinking aloud at the time. What I was trying to say was that they will have negotiated far more leeway as they don't know for sure when the appeal will be heard.
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Post by supergas on Sept 15, 2015 9:58:58 GMT
You forgot the bit about the appeal costing very little and all costs have been paid Heard we have negotiated a no win no fee deal, so either the solicitors are confident, or they feel partly responsible? Ever heard of a solicitor who doesn't count his/her own pennies? No, me neither. I suspect they don't want to be sued themselves for completely mis-managing the whole thing from the start and are doing the appeal on the cheap to try to show they have done everything they could do and/or hope we go bust in the meantime... |
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Post by gasincider on Sept 15, 2015 17:43:43 GMT
I think I'm right in saying that we changed our legal reps some while ago for the reason you suggest
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Post by Topper Gas on Sept 15, 2015 18:07:31 GMT
I thought it's always been Burges Salmon? Although NH always likes to blame somebody for our failings!
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Post by Deleted on Sept 15, 2015 19:42:46 GMT
One small correction Gasincider, Higgs came aboard in 2006 but I assume you mean took the chair?
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Post by gasincider on Sept 15, 2015 20:27:50 GMT
Yes I did Holmes. My apologies
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Post by Deleted on Sept 15, 2015 20:35:09 GMT
Yes I did Holmes. My apologies Do you think that the other directors have approved this massive increase in debt or has Higgs gone alone as the majority shareholder? Do you think the other directors will sit quietly and allow it to continue? |
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Post by supergas on Sept 15, 2015 21:44:44 GMT
Yes I did Holmes. My apologies Do you think that the other directors have approved this massive increase in debt or has Higgs gone alone as the majority shareholder? Do you think the other directors will sit quietly and allow it to continue? Since they're all shareholders they have one of three choices. Approve it, oppose it and stay in, or oppose it and get out. Not aware of too many in columns B and C so far... |
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Post by gasincider on Sept 15, 2015 21:51:38 GMT
EW wouldn't know anything about finance, but CJ arranged the loan. It would be interesting to know how much commission he earned on it, not to mention the revamp of the loan.
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Post by peterparker on Sept 16, 2015 5:53:56 GMT
Yes I did Holmes. My apologies Do you think that the other directors have approved this massive increase in debt or has Higgs gone alone as the majority shareholder? Do you think the other directors will sit quietly and allow it to continue? Well Geoff and Rod have left. I think thar gives soke clue to what they think about the dorection we have taken |
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Post by Deleted on Sept 16, 2015 6:10:55 GMT
EW wouldn't know anything about finance, but CJ arranged the loan. It would be interesting to know how much commission he earned on it, not to mention the revamp of the loan. If a company Jelf has an interest in earns from BRFC then it has to be declared in the accounts. |
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Post by Deleted on Sept 16, 2015 6:11:46 GMT
Do you think that the other directors have approved this massive increase in debt or has Higgs gone alone as the majority shareholder? Do you think the other directors will sit quietly and allow it to continue? Since they're all shareholders they have one of three choices. Approve it, oppose it and stay in, or oppose it and get out. Not aware of too many in columns B and C so far... Yep, you've reworded my questions. |
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