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Debt situation


saints_is_the_south

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So what is the debt situation? As i understand it Markus Liebherr has not bought SLH but its assets. This means SFC & i assume the training ground & SMS?

 

Will we continue paying the mortgage on the stadium or has that it been bought meanning we no longer own any money on it? Has the overdraft with Barclays now been cleared?

 

Would be interesting to know!

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I've read a number of articles that state the Liebherr family don't like doing their business with any debt what so ever.

 

that's what I heard too. Apparently they built the company from scratch to a turnover of 8 billion euros without ever taking on any debt. That is impressive. Mightily relieving to be debt free..

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ML now owns everything. No debt, no overdraft. Thats £2.5m a year saved on mortgage repayments and interest!

 

I bet Norwich Union are ****-a-hoop with B*rcl*ys if you're right. Didn't we owe something like £24M on the mortgage alone and ML paid something like £12.5M for everything? So I would guess that NU got something like £8M to £10M?

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I bet Norwich Union are ****-a-hoop with B*rcl*ys if you're right. Didn't we owe something like £24M on the mortgage alone and ML paid something like £12.5M for everything? So I would guess that NU got something like £8M to £10M?

 

Don't think they lost that much, was a £30m takeover.

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£13m. It was posted on here last night that South Today said last night it was a £30m takeover but i later found out that whoever posted that on here had misheard them & the amount is nearer £13m.

 

Watched it aswell, definately thought they said 30

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That's right. Debt free. No Lowe. No plc. No noose around our necks. Time to rebuild.

 

I'm not going to believe that unless someone official actually comes out and says it, there is absolutely no reason that the buyer couldn't just take over the mortgage payments on the ground and carry on as before. If they have paid the reported 12-15 million then Norwich Union have taken a massive loss on the stadium which seems highly unlikely.

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All of it? Stadium too? So we don't owe a penny in mortgage repayments on the stadium?

 

Hate to say this but "we" will never owe anything nor will the club every "owe" us anything. Our club is now privately owned for the first time in our 124 year old history. There is no debt, no morgage and we have no rights. The new owner can do whatever he likes.

Not saying this is a bad thing but we are going to have to get used to the fact that SFC is not answerable to the fans at all.

 

However it would be a silly man for him to want to alienate the fans. It is going to take a long time to get used to being in private hands. Even going back before the first World War there were demonstrations by the fans against the directors at the way the club was run, and they had to listen, but not anymore.

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Why would Aviva write that much off when theres a billionaire owner who can pay them back at full price?

 

It might happen but it makes no sense to me.

Because that billionaire is only offering to pay them that much. It's a case of "take that and get something or reject it and possibly get nothing".

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Why would Aviva write that much off when theres a billionaire owner who can pay them back at full price?

 

It might happen but it makes no sense to me.

 

Because he hasn't offered to, that's why!

 

If they didn't accept his (or a similar) offer, they would have been left with nothing.

 

Simple as....

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Hate to say this but "we" will never owe anything nor will the club every "owe" us anything. Our club is now privately owned for the first time in our 124 year old history. There is no debt, no morgage and we have no rights. The new owner can do whatever he likes.

Not saying this is a bad thing but we are going to have to get used to the fact that SFC is not answerable to the fans at all.

 

However it would be a silly man for him to want to alienate the fans. It is going to take a long time to get used to being in private hands. Even going back before the first World War there were demonstrations by the fans against the directors at the way the club was run, and they had to listen, but not anymore.

 

Sorry FF, thats rubbish. The club has been been owned by the shareholders in all recent history. Whether those shares are publicly traded or held privately makes no difference. The fans will have exactly the same influence we have always had, no more no less.

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Hate to say this but "we" will never owe anything nor will the club every "owe" us anything. Our club is now privately owned for the first time in our 124 year old history. There is no debt, no morgage and we have no rights. The new owner can do whatever he likes.

Not saying this is a bad thing but we are going to have to get used to the fact that SFC is not answerable to the fans at all.

 

However it would be a silly man for him to want to alienate the fans. It is going to take a long time to get used to being in private hands. Even going back before the first World War there were demonstrations by the fans against the directors at the way the club was run, and they had to listen, but not anymore.

 

Yeah because all the fans demonstrations against Lowe & Co were acknowledged and acted upon weren't they! ;)

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The stadium (& other) debt has been draging this club down for years and it's a massive relief to be rid of it - let's hope we never fall into that trap again .

 

Now we've got that debt cleared let's get the capacity up to 50k with another mortgage... Whoot! :rolleyes:

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Hate to say this but "we" will never owe anything nor will the club every "owe" us anything. Our club is now privately owned for the first time in our 124 year old history. There is no debt, no morgage and we have no rights. The new owner can do whatever he likes.

Not saying this is a bad thing but we are going to have to get used to the fact that SFC is not answerable to the fans at all.

 

However it would be a silly man for him to want to alienate the fans. It is going to take a long time to get used to being in private hands. Even going back before the first World War there were demonstrations by the fans against the directors at the way the club was run, and they had to listen, but not anymore.

 

But, as you allude to at the start of your second paragraph Duncan, SFC is ultimately answerable to the fans. I'm sure a private owner would listen to the fans if they didn't turn up to sample their wares. Arguably, perhaps even more so now it is a privately run business.

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Why would Aviva write that much off when theres a billionaire owner who can pay them back at full price?

 

It might happen but it makes no sense to me.

 

To flip that around... Why should a new owner pay when they are unable to sell to anybody else?

 

I'd be amazed if £13m (or whatever the figure is) doesn't buy everything, including the stadium leaving all the debt behind.

 

The stadium is not worth anything to Aviva. If they were to have refused the deall, what do you think they would have been able to do as an alternative? Yes it's a big hit for them to take but they don't really have a choice.

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I wonder how many other League 1 clubs would swap our situation for theirs?

 

Minus 10, but totally debt free with a multi billionaire owner?

 

I can't see many I'd swap with right now, even in the Championship.

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the basics of it is that ML has offered "x" amount in the pound for the debt. It could be 50p so basically he cleared all the debt for 50%. The creditors ie Aviva and Barclays would have accepted that through the admin team. So of the £24m owned on the stadium, ML has paid £12m.

 

Good business if you ask me!

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Hate to say this but "we" will never owe anything nor will the club every "owe" us anything. Our club is now privately owned for the first time in our 124 year old history. There is no debt, no morgage and we have no rights. The new owner can do whatever he likes.

Not saying this is a bad thing but we are going to have to get used to the fact that SFC is not answerable to the fans at all.

 

However it would be a silly man for him to want to alienate the fans. It is going to take a long time to get used to being in private hands. Even going back before the first World War there were demonstrations by the fans against the directors at the way the club was run, and they had to listen, but not anymore.

 

Come on Duncan, this is paranoid nonsense. If we dont like what he does, we vote with our feet and dont go.

 

However, I dont expect this to happen. He sounds committed to the clubs future.

 

Do you want to go back to a plc structure with a chancer like Lowe in charge ?

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Now we've got that debt cleared let's get the capacity up to 50k with another mortgage... Whoot! :rolleyes:

 

It wouldn't be bad idea to increase the capacity to around 40,000 so that we can outbid Pompey for the World Cup venue.. That is do-able and Pompey is the club at risk of going under now.

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Did we owe any money to the inland revenue? Don't the league place further harsh penalties if you don't pay them enough money and come out with a CVA?

 

Liebherr didn't buy a company that was in Administration so it's no concern of his or the club's....surely...?

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But how do we get our CVA if we are still owing money to creditors? Our debt was more than he paid.

 

 

We never needed one. That was nonsense supposedly ITK people posted on here when they invented the possibility that pinnacle were fighting a further points deduction.

 

The only possible 'debt' now may be a promise to pay the creditors less now and more later. Pinnacle's bid was repoertedly relatively low to begin with (it became obvious why!) but with promises of further installments if/when we got promoted. As far as I know no one has spelt out the details of Herr Liebherr's deal, but at one stage Fry implied that whoever took over would have to take the form of contracts prepared for pinnacle because there wasn't time to re-cast them.

 

So who knows if Markus has paid all the £12.5 million (?) upfront or is paying in installments? Either way it will have been agreed with the creditors and we will no longer have mortgage or overdraft interest payments to cover.

 

K.

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Hate to say this but "we" will never owe anything nor will the club every "owe" us anything. Our club is now privately owned for the first time in our 124 year old history. There is no debt, no morgage and we have no rights. The new owner can do whatever he likes.

Not saying this is a bad thing but we are going to have to get used to the fact that SFC is not answerable to the fans at all.

 

However it would be a silly man for him to want to alienate the fans. It is going to take a long time to get used to being in private hands. Even going back before the first World War there were demonstrations by the fans against the directors at the way the club was run, and they had to listen, but not anymore.

 

Hopefully we've exchanged an autocratic tyrant for a benevolent billionaire and a bright new future. Shouldn't take too long to get used to it.

 

The club still has shares whether or not they're traded publicly.

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Hate to say this but "we" will never owe anything nor will the club every "owe" us anything. Our club is now privately owned for the first time in our 124 year old history. There is no debt, no morgage and we have no rights. The new owner can do whatever he likes.

Not saying this is a bad thing but we are going to have to get used to the fact that SFC is not answerable to the fans at all.

 

However it would be a silly man for him to want to alienate the fans. It is going to take a long time to get used to being in private hands. Even going back before the first World War there were demonstrations by the fans against the directors at the way the club was run, and they had to listen, but not anymore.

 

 

Good post. Agree 100%. As I mentioned elsewhere we will need to seriously examine our fan-based leadership and structures to support the new owners but also to counter the dangers of one owner. Perhaps a new role for the Saints Trust if it can find suitable leadership. I have campaigned for so long for this moment that it makes me want to shout from my roof today... but I also acknowledge the (minor) dangers.

 

You're right. Well said.

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But how do we get our CVA if we are still owing money to creditors? Our debt was more than he paid.

 

 

I'm not sure we actually ever needed one, but you'd still get one in this situation. In fact, that's what a CVA is. An agreement by 75% of the people you owe money (by value) to to accept less than you owe them.

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Hate to say this but "we" will never owe anything nor will the club every "owe" us anything. Our club is now privately owned for the first time in our 124 year old history. There is no debt, no morgage and we have no rights. The new owner can do whatever he likes.

Not saying this is a bad thing but we are going to have to get used to the fact that SFC is not answerable to the fans at all.

 

However it would be a silly man for him to want to alienate the fans. It is going to take a long time to get used to being in private hands. Even going back before the first World War there were demonstrations by the fans against the directors at the way the club was run, and they had to listen, but not anymore.

 

The club was privatley owned, all be it with several shareholders up until Rupes road into town with the reverse takeover making it a public company. The only difference between now and pre 1997 (?) is there is one owner now compared to several back then.

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I'm not sure we actually ever needed one, but you'd still get one in this situation. In fact, that's what a CVA is. An agreement by 75% of the people you owe money (by value) to to accept less than you owe them.

 

I'm not Einstein at math, so 13 million is more than 75% of 40 million then?

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Now that is superb news.

 

I hope that Aviva and the small businesses got a good pay off and that Barclays got the square root of eff all!

 

Although Barclays did rather remove Lowe and his plc for good. Ironic they may get nothing for one of the most important decisions in Saints history.

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