Wasps going into admin & the impact on CCFC (223 Viewers)

[oldfiver]

As I understand it, it's controlled by the FCA and you need stuff like a draft bond prospectus that meets with their approval.

Given the current bond is supposed to have redeemed in May, and all of the confusion around administration, I can't see the FCA relisting it.

That's because I also can't see how the current prospectus can be seen to apply and that the bonds themselves are now technically in default.

In short, I can't see it happening.

The only way I see the bondholders getting paid is a new investor clearing the debt, possibly by offering a haircut, or the bondholders forcing the sale of the lease and any other assets held by Wasps/ACL.

Thinking it through further, the problem with offering a haircut is that they'd have to get a certain proportion to agree, and I don't think that's going to be easy in the amount of time Wasps have left; especially now that the administration clock is ticking.

Unless there's genuinely someone out there with a lot of money to throw at Wasps, £40-50m, then I can't see any way they avoid administration. Just my personal opinion though, obviously.

Remember the Trustee acts for the Bondholders. I don't know if he has to take a vote to make his decision on a redemption price or he can apply his discretion

 

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[duffer]

Remember the Trustee acts for the Bondholders. I don't know if he has to take a vote to make his decision on a redemption price or he can apply his discretion

It's an absolutely fair point.

I'm thinking that whilst he might be able to sit on his hands during the admin process and say, "I don't know what you want me to do", he'll find that a lot more perilous if he says unilaterally "we'll take 50%" when by all accounts the lease and assets should cover the whole amount.

At some point he might find himself in court with that approach, I'd venture, because that's clearly not acting in the bondholders best interests.

 

[robbiethemole]

Aren’t we all so very glad CCC refused to sell to SISU all those years ago, can you imagine the shitshow that would have happened if they had been allowed to raise millions against a lease on the stadium?…………oh, hang on

 

[Gynnsthetonic]

Aren’t we all so very glad CCC refused to sell to SISU all those years ago, can you imagine the shitshow that would have happened if they had been allowed to raise millions against a lease on the stadium?…………oh, hang on

What the the heck, Lucas, Mutton and Co were thinking I don't know, done out of sheer spite

 

[oldfiver]

What would have to change for the exchange to remove the restrictions on trading the bond's?

at least 3 conditions - probably more

Proof of Solvency
All regulatory matters are up to date (eg Accounts )
A current audited financial statement

 

[hutch1972]

Still a ridiculously high rate. During the time the bond has been in issue there have been times when it was a struggle to get 1%
Obviously it reflected the risk, as all investments do.

There are bond risks where you are covered up to 85k, and there are retail bond risks where you can be left penniless. Sorry to say the Wasps bonds are the latter.

 

[duffer]

at least 3 conditions - probably more

Proof of Solvency
All regulatory matters are up to date (eg Accounts )
A current audited financial statement

And the regulations require a bond prospectus, that really long document that outlines the business structures, breaks down the accounts, the valuations, and the risks.

The current one is clearly out of date, given all of the changes that have happened and the fact the bond redemption date has already passed. I don't think the bonds will be relisted anytime soon.

 

[Gynnsthetonic]

Just those 4 in singers corner on sunday

 

[Sky Blue Harry H]

Apparently, Wasps are running out to this on Sunday

 

[LastGarrison]

Just those 4 in singers corner on sunday

Fucking hell.

 

[Grendel]

Fucking hell.

He seems to take Nobby the Gnome everywhere

 

[tisza]

Just those 4 in singers corner on sunday

Which one is shugs?

 

[duffer]

And in other news, Wasps are back in a recruitment freeze.

It might just be me, but reading between the lines I think this is a slightly more downbeat (i.e. realistic) interview by the head coach.

What Wasps' players were told Wednesday about second court filing

Wasps' Lee Blackett has revealed players and staff were addressed at the training ground on Wednesday by CEO Vaughan and COO Holland.

www.rugbypass.com

 

[Gynnsthetonic]

He seems to take Nobby the Gnome everywhere

Does the gnome count towards ticket sales.

 

[Nick]

Just those 4 in singers corner on sunday

Alexa, tell me what second hand embarrassment means.

 

[skyblueeyesrevisited]

Just those 4 in singers corner on sunday

Reminded me of the tribal chant in Zulu.
Frightening

 

[jordan210]

"The BBC has discovered that Coventry City Council, as freeholder of the stadium, has the right to force Wasps to forfeit the lease "if the tenant enters into some kind of insolvency regime"."


Pretty sure MusicDating pointed this out days ago....

 

[Nick]

Hasn't that been said for years?

However, that says the Council "has the right" which means they clearly aren't going to do it.

 

[Mcbean]

Hasn't that been said for years?

However, that says the Council "has the right" which means they clearly aren't going to do it.

This is the normal delay of beeb news !

 

[chiefdave]

"The BBC has discovered that Coventry City Council, as freeholder of the stadium, has the right to force Wasps to forfeit the lease "if the tenant enters into some kind of insolvency regime"."

Pretty sure MusicDating pointed this out days ago....

'discovered', do they mean by reading the bond prospectus issued years ago

 

[jordan210]

'discovered', do they mean by reading the bond prospectus issued years ago

The other day they dint know wasps 2006 had filled an NOI. Id guess they saw it on here and then read the prospect.

 

[shmmeee]

"The BBC has discovered that Coventry City Council, as freeholder of the stadium, has the right to force Wasps to forfeit the lease "if the tenant enters into some kind of insolvency regime"."


Pretty sure MusicDating pointed this out days ago....

 

[Samo]

"The BBC has discovered that Coventry City Council, as freeholder of the stadium, has the right to force Wasps to forfeit the lease "if the tenant enters into some kind of insolvency regime"."


Pretty sure MusicDating pointed this out days ago....

A chance for CCC to correct a huge wrongdoing. Will they take it? I very much doubt it?

 

[CCFCSteve]

Hasn't that been said for years?

However, that says the Council "has the right" which means they clearly aren't going to do it.

Exactly. Very unlikely. They might do if there’s no other alternative or if they felt that the correct solution wasn’t being progressed/executed (again extremely unlikely)

They are likely to work with an administrator to agree transfer/sale of long lease

 

[Gynnsthetonic]

Exactly. Very unlikely. They might do if there’s no other alternative or if they felt that the correct solution wasn’t being progressed/executed (again extremely unlikely)

They are likely to work with an administrator to agree transfer/sale of long lease

Sale or transfer back to Richardson who will then let newly formed but not relegated Wasp 2022 RFC play there

 

[jordan210]

Now that wasps community foundation appears to be active again after being struck off. what's the bet the lease ends up with them...

 

[Skyblueweeman]

Now that wasps community foundation appears to be active again after being struck off. what's the best the lease ends up with them...

Imagine if Sisu had the lease, they went pop and then SKITC took on the lease - there'd be uproar.

 

[CCFCSteve]

Sale or transfer back to Richardson who will then let newly formed but not relegated Wasp 2022 RFC play there

If he makes the best offer and rugby authorities agree, yes, maybe

 

[Samo]

If he makes the best offer and rugby authorities agree, yes, maybe

But what would be the point? The business model doesn't work. I would have thought they would be glad to get rid of the lease and fuck off somewhere smaller and cheaper.

 

[RegTheDonk]

If he makes the best offer and rugby authorities agree, yes, maybe

Are the council duty bound to get the best price and sell to whoever wants it though? If it goes into Admin, wouldn't they have a responsibility to get as much as they can for the creditors? Haven't we complained that SISU weren't offered the chance to buy the lease? After all the fruckuss, both then and now, could they make councillors vote for selling it virtually straight back to Wasps? Doesn't sound best value to me, stinks of skullduggery.

 

[Theonlywayisskyblue]

Are the council duty bound to get the best price and sell to whoever wants it though? If it goes into Admin, wouldn't they have a responsibility to get as much as they can for the creditors? Haven't we complained that SISU weren't offered the chance to buy the lease? After all the fruckuss, both then and now, could they make councillors vote for selling it virtually straight back to Wasps? Doesn't sound best value to me.

They didn't follow due process last time - why would it be any different this time ? Selling it back to WaspsV2 on the basis that things will be different this time based on a fantasy business model is surely the only way for them to cover their backs. Otherwise they have to admit they got it wrong last time ? Don't want to be unduly cynical but when they're up to your elbows in it.......

 

[Liquid Gold]

Journalism is on its arse

 

[jordan210]

 

[chiefdave]

as a journalist isn't one of the basic requirements to make sure the report you're filing is actually clear?

 

[JonesBob]

That Simon Gilbert is such a numpty. He is lucky to be working in a regional paper that has a 4 figure readership otherwise he would be out faster than a slippery turd.