If/when Fry sells...

[Pancake]

...SFC for £x

...SMS for £y

...Stapelwood for £z

...Jacksons Farm for £n

...Others fior £m

 

what will happen to SLH? No one will have bought them, and the money raised from selling the bits n bobs will go to satisfying the creditors. Will SLH just fold and die?

 

If that is the case, if Pinnacle pick up SFC, SMS and Staplewood; will Fry et al stay on as Administrators of SLH to sell Jacksons Farm and other bits?

[Doctoroncall]

Yes

 

Yes.

 

 

Hope that helps.

[Pancake]

Yes

 

Yes.

 

Hope that helps.

 

Ah ha. Thanks.

[Big_Bald_Si]

...SFC for £x

...SMS for £y

...Stapelwood for £z

...Jacksons Farm for £n

...Others fior £m

 

what will happen to SLH? No one will have bought them, and the money raised from selling the bits n bobs will go to satisfying the creditors. Will SLH just fold and die?

 

If that is the case, if Pinnacle pick up SFC, SMS and Staplewood; will Fry et al stay on as Administrators of SLH to sell Jacksons Farm and other bits?

 

My gut feeling is that the deal has been structured in such a way so as to "prove" that SLH and Saints FC are two seperate entities and this is a big part of the hold up of the deal taking place. I'm not entirely sure it would be legal to buy up just the football club and leave a completely distressed company with huge debts that they'll never repay.

 

Its analagous to getting yourself a huge loan, set up your own company, buy an Aston Martin via your company, sell the Aston Martin to yourself for a knock down price, declare your company insolvent with no way of repaying the loan and write everything off.

 

Not quite the same, but I just don't think you can "asset strip" like you suggest above.

[1976_Child]

My gut feeling is that the deal has been structured in such a way so as to "prove" that SLH and Saints FC are two seperate entities and this is a big part of the hold up of the deal taking place. I'm not entirely sure it would be legal to buy up just the football club and leave a completely distressed company with huge debts that they'll never repay.

 

Its analagous to getting yourself a huge loan, set up your own company, buy an Aston Martin via your company, sell the Aston Martin to yourself for a knock down price, declare your company insolvent with no way of repaying the loan and write everything off.

Not quite the same, but I just don't think you can "asset strip" like you suggest above.

 

This loop hole was closed a few years back. Now the directors of a limited company are responsible for the company's debts.

[eurosaint]

The assets of SLH can be sold off piecemeal to the highest bidder and when everything is gone (or not, if there are unsaleable parts) then the creditors take the hit and SLH cease to be !

Biggest losers will be Aviva, Barclays, Wilde, Crouch and 'him what nobody likes' !!!!

[Doctoroncall]

Ah ha. Thanks.

 

Fry was brought in to sell the assets of SLH, if SLH could not be sold as a going concern with some cash injection. If this can be done in a reasonable time frame all well and good.

 

If not, with no buyer coming forward, then the individual assets would be auctioned off (e.g Jacksons farm) and then wound up.

[Evo]

...SFC for £x

...SMS for £y

...Stapelwood for £z

...Jacksons Farm for £n

...Others fior £m

 

what will happen to SLH? No one will have bought them, and the money raised from selling the bits n bobs will go to satisfying the creditors. Will SLH just fold and die?

 

Fry will have been looking all along to sell all of the assets of SLH. So, assuming he hasn't sold any of the other bits he will do so if he can. He may have decided that he can dedicate more time to finding buyers for these bits post sale of SFC or it may be he has lumped anything remotely like an asset in the sale package for Pinnacle/AN Other to avoid the hassle (hmm...).

 

Anyway, the sale of all these assets will yield a cash balance in SLH (i.e. the asset gets changed from a fixed asset to a current asset.

 

Without the positive cashflows from SFC, Fry will conclude that SLH is not a viable concern and get it liquidated. Any remaining assets will then be sold at the best price possible, i.e. fire sale prices. Whatever cash balance will be distributed pro-rata to the creditors.

 

If that is the case, if Pinnacle pick up SFC, SMS and Staplewood; will Fry et al stay on as Administrators of SLH to sell Jacksons Farm and other bits?

 

Yes.

 

What we don't know is the structuring of the deal. Much talk has been of promotion based payouts and the like, so it's likely that some of the settlements will have a deferred element. It's actually possible that none of the debt ends up being written off. That would shove two fingers up at the FL.

 

This loop hole was closed a few years back. Now the directors of a limited company are responsible for the company's debts.

 

Only if they've been naughty or have signed a contract admitting liability. In all other cases they are not liable for the company's liabilities. Otherwise there aint much point having a company.