Grendel
Well-Known Member
No it’s not a deadline there isn’t technically a deadline
Wasps downward spiral... (80 Viewers)
- Thread starter CCFC54321
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No it’s not a deadline there isn’t technically a deadline
Gynnsthetonic
Well-Known Member
When's the next interest payment due, is it October/November time, apparently its £2.8m, how the hell are they going to pay that
chiefdave
Well-Known Member
I thought Wasps had said a consent solicitation process would be formalised in August, must have got my dates mixed up. When did they say they'd have that out by?
Grendel
Well-Known Member
They said they’d aim to.
Gynnsthetonic
Well-Known Member
It wasn't a deadline, it's just a date they gave out, nothing illegal
shepardo01
Well-Known Member
It's almost like they know how difficult it is for anything to be done and are happy to just keep trying to pull the wool over everybody's eyes...
But obviously that is not what they are doing as it is just "not very wasps like" to do that kind of thing!!!
MalcSB
Well-Known Member
They didn’t say they would aim to, they said they would - so it was a (self proposed/imposed) deadline.
From Wasps update of 30 July
”The issuer is now working on the proposed bond terms to be amended and will formally launch a consent solicitation process in August once the proposed terms have been finalised.
MalcSB
Well-Known Member
Not being illegal doesn’t make it not a deadline.
I think trading whilst insolvent is illegal though.
MalcSB
Well-Known Member
Probably waiting to get past the first match of the season.
MalcSB
Well-Known Member
It will be half that as it will be 6 months interest.
The real deadline passed in May
They are now in a period where the Trustee (engaged by WASPS) considers it is worth extending delaying recovery action
duffer
Well-Known Member
Not illegal, but they clearly said that they would formalise a consent solicitation process in August, and they've evidently not done so.
It's going to even further erode the trust between the bondholders and the club, which is already at rock bottom in any case. If or when a deal is offered, who will be willing to take them at their word?
I think this makes it far more likely that a large proportion of bondholders will push for settlement rather than continued extension, and that can't be good for Wasps, imho.
Gynnsthetonic
Well-Known Member
Why?
clint van damme
Well-Known Member
They didn't say what year!
Gynnsthetonic
Well-Known Member
They've said a lot of stuff regarding deadlines which havnt materized, this being another one
duffer
Well-Known Member
Absolutely, which is why the bondholders are getting organised to take action. There's a pattern of behaviour here which has become evident - keep kicking the can down the road and hope for the best.
Investors and creditors get tired of that eventually...
Grendel
Well-Known Member
Yes it did but clearly they believe they can carry on with paying interest without sufficient numbers to object to what is happening
shepardo01
Well-Known Member
Sure I read somewhere that the Rugby penalties aren't as severe... can't be expelled from league. Would need more clarification from someone who knows though....
Gynnsthetonic
Well-Known Member
But how long can they go on paying the interest. Be interesting next due payment
Gynnsthetonic
Well-Known Member
Can't see them being expelled, they could get deducted 10000 points and still wouldn't be relegated. Ealing would be more than willing though to take their place I'm sure.
D
Deleted member 5849
Guest
Wasps could merge with them, go back to their roots...
MalcSB
Well-Known Member
Because it will potentially limit the range of penalties from the RFU.
MalcSB
Well-Known Member
According to RFU rules, they could potentially be relegated.
Gynnsthetonic
Well-Known Member
Coach loads of Coventry based Wasp fans converge in London every fortnight
Gynnsthetonic
Well-Known Member
No relegation though
MalcSB
Well-Known Member
That’s an interesting one. There is no sporting performance based relegation according to PRL rules, but if Wasps went spectacularly bust- who knows. Which is why I said “potentially”.
This is probably the thing to keep an eye on. I suspect they’ll keep scraping the money together to pay it
MalcSB
Well-Known Member
Someone on the bond holders forum have suggested that extending the term at current interest rate could be preferable to Wasps as commercial rates are likely to be 10% or more.
Might be their least bad option
MalcSB
Well-Known Member
But they need the bondholders to agree. They seem to be prepared to give Wasps some time, but I’m not sure a continuation at 6.5% will be all that attractive to them.
MalcSB
Well-Known Member
The numbers are getting there, seems like they are up to over 10%, sufficient to call an EGM, already.
I was about to raise the same point as G but see you’ve addressed it below.
Is this via a Facebook group? If so, hopefully people will continue to update this thread with any developments.
On that note, thanks to everyone contributing. I’m enjoying catching up on this thread!
AOM
Well-Known Member
All 3 of them could share an Uber