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Liquidation Q and A's


StuRomseySaint
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It's what happened to Boston United, they went into the Conference North and then ended up going down again. Conference South is not the end of the world, we could get out of it, but it would depend on who takes over from then, be it a fans group or whatever.

 

Plus, I didn't know the awful situation that Darlo are in, a chairman who is sitting on the club letting them rot....they are in a worse situation than us!

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Having read that Darlington bit I was taken by this piece

 

"Mr Singh has subsequently submitted another “take it or leave it bid”, but that has been rejected by the administrators."

 

The important part being that the Administrators turned down the bid. Which makes me wonder exactly what the administrator is trying to achieve for the creditors in this instance. Furthermore, could, indeed would, Begbies do this here?

 

If so then surely that's the example and impetus to both sides to come to an agreement?

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Having read that Darlington bit I was taken by this piece

 

"Mr Singh has subsequently submitted another “take it or leave it bid”, but that has been rejected by the administrators."

 

The important part being that the Administrators turned down the bid. Which makes me wonder exactly what the administrator is trying to achieve for the creditors in this instance. Furthermore, could, indeed would, Begbies do this here?

 

If so then surely that's the example and impetus to both sides to come to an agreement?

 

Only if the administrator considers the value of the clubs assets to be less than the offer (i.e. better to take the offer than liquidate and sell off the silver). The administrators sole goal (sole goal) is to get the best deal for creditors. If that leaves a going concern, so be it, if not, it is not the administrators concern.

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Only if the administrator considers the value of the clubs assets to be less than the offer (i.e. better to take the offer than liquidate and sell off the silver). The administrators sole goal (sole goal) is to get the best deal for creditors. If that leaves a going concern, so be it, if not, it is not the administrators concern.

 

And that is the most worrying bit, Darlo's stadium is council owned ( i think ) and not a saleable asset, they have nothing to give the creditors if it was liquidated, yet bids are still being turned away!

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And that is the most worrying bit, Darlo's stadium is council owned ( i think ) and not a saleable asset, they have nothing to give the creditors if it was liquidated, yet bids are still being turned away!

 

I thought the George Reynolds stadium was owned by Darlington.

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And that is the most worrying bit, Darlo's stadium is council owned ( i think ) and not a saleable asset, they have nothing to give the creditors if it was liquidated, yet bids are still being turned away!

 

Isn't it owed by the madman Reynolds

 

 

Edit - just read the post above

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I do think we'll be taken over BUT hypothetically i suppose Barclays/Aviva could effectively mothball the stadium/jacksons farm and wait for the recession to end and sell the land for yuppie flats at a higher price.

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Some fella called Houghton, either way, it's not an asset of Darlington FC, so cannot be sold.

 

I live just a couple of miles from the Darlington Arena. The Darlington situation is a bit different than Saints, though it has some resonance. Hopefully they too will find a buyer.

 

Basically, a few years ago the club was bought by George Reynolds and he managed to gain planning permission to build a large Premiership/Championship quality stadium on the edge of the town.

 

However, a fraud investigation revealed that the money used to build the ground and develop the club had been gained illegally, so the stadium and the club's assets were seized and eventually came to be owned by George Houghton, while Reynolds was thrown into prison.

 

Since then Houghton has invested heavily in the club to keep it going, but with tiny crowds it cannot cover its costs and so he has finally decided he cannot continue to fund the cost of running the club (though quite why he decided to do that when they were on the brink of at least a play-off place with the potential of larger crowds in league 1, I do not know!)

 

Anyway, that resulted in the club going into administration, but the ground is a seperate entity and remains his property. One likely/possible outcome is that if/when the club is liquidated he will opt to have the ground demolished and housing or offices built on the land in its place.

 

I just hope that Saints don't end up getting to this stage too. It would be awful if both Saints and Darlo go out of business.

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As I understand, liquidation means breaking up the company's assets and selling them off piecemeal to the highest bidders. Is it so different from the position we are now in?

 

I suppose it depends upon the degree of break-up. I may be able to buy the office equipment, the catering equipment, the spare kits, the training cones, the turf from the pitch, the lawnmowers, the plastic seats or even the concrete and steel from the stadium? Would I pay less for such a collection of assets if bought piecemeal in a liquidation sale?

 

Just musing...

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Have found this which proves very interesting reading if you are interested in the in's and outs of administration and possible liquidation.

 

http://coventry.academia.edu/JohnBeech/Papers/82558/The-Circumstances-in-which-English-Football-Clubs-Become-Insolvent

 

Reading the report does not make me confident that we will get out of it without an extra 15 point deduction, and it looks more possible of liquidation.

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Have found this which proves very interesting reading if you are interested in the in's and outs of administration and possible liquidation.

 

http://coventry.academia.edu/JohnBeech/Papers/82558/The-Circumstances-in-which-English-Football-Clubs-Become-Insolvent

 

Reading the report does not make me confident that we will get out of it without an extra 15 point deduction, and it looks more possible of liquidation.

 

Good to see you rely on an expert from Pompey Stu. John Beech RIP

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