Wasps going into admin & the impact on CCFC (234 Viewers)

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Tommo1993

Tommo1993

Well-Known Member
Travs said:
They discussed this on TalkSport this evening.... Darren Bent was saying that he lives near the Ricoh and it was a "massive loss" to Coventry and the community.

They did have a rugby expert on who vaguely pointed out some animosity from the football club. But it was about as in-depth a discussion as you'd expect from TalkSport.
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Another pillock who is either afraid to call out something for what it actually is, or moronically ignorant.
 
Nick

Nick

Administrator
Travs said:
this "Rugby Family" is so hypocritical it defies belief...

Wasps were quick enough to help pull up the drawbridge on the rest of the rugby pyramid and close the Premiership off.
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And gloat about Saracens "cheating" because they payed players more than they should.

Ironic they took money from bondholders to pay players when they knew they weren't really able to pay it back.
 
pusbccfc

pusbccfc

Well-Known Member
John Deziel is having a stinker on twitter. Ironic because he was abused for weeks by Wasps fans when they employed him.
 
Skyblue_CP

Skyblue_CP

Well-Known Member
Ashley is going to pick up Wasps and the CBS, we will be renting off him for an extortionate price, until SISU withhold the rent… Will feel like Quantum Leap.
 
jordan210

jordan210

Well-Known Member
Nellywelly thinking they have pre packaged admin as the website went down and will be news tomoz in the morning


"

But, and this is important, we are as mushrooms in this. What could have happened already? Just supposition ...

Wasps approached an Insolvency Practitioner (IP) who agreed to act should the decision be made, and Wasps asked that IP to talk with the creditors in advance, to get a creditor's committee together (typically representing more than 50% of creditors by total debt). Usually, HMRC are in there. Many creditors give their proxy to the IP.

So that, by the time the Court approves the administration, a so-called pre-pack is in place.

Now, the IP has to advertise their appointment in the London Gazette, but it can take a day or two for that to appear. If the IP does not speak directly to the media, you have only small clues that the business went in to administration. Such as ... social media goes silent and website, online shop, etc. go offline (they did BTW).

The doors to the premises are locked. No idea if that happened. Staff are called to a meeting (I think BB said that happened this afternoon) to meet the IP and the directors.

If the pre-pack is in place, contracts would be signed within hours, and the deal announced publicly (after, a rescue is a 'good' thing, so the media are spoken to). This has not happened. That is odd, as the UK business day is now over. Maybe the buyer is overseas in a country/timezone where the business day is different.

Money has to flow. For an overseas transfer to the UK of that size, the IP might not officially see it until early morning UK time, but will already have had proof it has been sent on its way. An American resident buyer for example.

IF a pre-pack was in place, and IF the administration was this afternoon, you could expect the new buyer to emerge tomorrow morning, on media channels local to Coventry (I can't see it making national news on air). Say, around 8am.

Of course, as a pre-pack, this will have been arranged in advance. The media station that will 'break' the news will already know. Staff at the IP will know. Staff at Wasps and directors (some at least) will know. Wasps' most important assets (the players) will know. Some will speak to friends, some to wives/partners/husbands/family, and rumours will appear.

I get the feeling this is what will happen. I get the feeling the RFU already know Wasps are in Administration, and THAT triggered the suspension.

I think they will hold fire on announcing the relegation to see if Wasps can limit the lost games to just the Chiefs one. If Wasps can manage that and get playing again, they will get hit with a 35 points deduction, but no relegation.

Worcester fans will say, what about us? The RFU will reply, do you still have players under contract, because Wasps do? Do you have a ground you can play at, because Wasps do? Do you even have an owner, because Wasps do.

Nice and neatly, the PRL becomes 12 teams again. And other clubs who are teetering know what they have to do. See how Wasps started this process just after paying the players and all staff, so they could all remain under contract? That's how you do a pre-pack insolvency."
 
Nick

Nick

Administrator
jordan210 said:
Nellywelly thinking they have pre packaged admin as the website went down and will be news tomoz in the morning


"

But, and this is important, we are as mushrooms in this. What could have happened already? Just supposition ...

Wasps approached an Insolvency Practitioner (IP) who agreed to act should the decision be made, and Wasps asked that IP to talk with the creditors in advance, to get a creditor's committee together (typically representing more than 50% of creditors by total debt). Usually, HMRC are in there. Many creditors give their proxy to the IP.

So that, by the time the Court approves the administration, a so-called pre-pack is in place.

Now, the IP has to advertise their appointment in the London Gazette, but it can take a day or two for that to appear. If the IP does not speak directly to the media, you have only small clues that the business went in to administration. Such as ... social media goes silent and website, online shop, etc. go offline (they did BTW).

The doors to the premises are locked. No idea if that happened. Staff are called to a meeting (I think BB said that happened this afternoon) to meet the IP and the directors.

If the pre-pack is in place, contracts would be signed within hours, and the deal announced publicly (after, a rescue is a 'good' thing, so the media are spoken to). This has not happened. That is odd, as the UK business day is now over. Maybe the buyer is overseas in a country/timezone where the business day is different.

Money has to flow. For an overseas transfer to the UK of that size, the IP might not officially see it until early morning UK time, but will already have had proof it has been sent on its way. An American resident buyer for example.

IF a pre-pack was in place, and IF the administration was this afternoon, you could expect the new buyer to emerge tomorrow morning, on media channels local to Coventry (I can't see it making national news on air). Say, around 8am.

Of course, as a pre-pack, this will have been arranged in advance. The media station that will 'break' the news will already know. Staff at the IP will know. Staff at Wasps and directors (some at least) will know. Wasps' most important assets (the players) will know. Some will speak to friends, some to wives/partners/husbands/family, and rumours will appear.

I get the feeling this is what will happen. I get the feeling the RFU already know Wasps are in Administration, and THAT triggered the suspension.

I think they will hold fire on announcing the relegation to see if Wasps can limit the lost games to just the Chiefs one. If Wasps can manage that and get playing again, they will get hit with a 35 points deduction, but no relegation.

Worcester fans will say, what about us? The RFU will reply, do you still have players under contract, because Wasps do? Do you have a ground you can play at, because Wasps do? Do you even have an owner, because Wasps do.

Nice and neatly, the PRL becomes 12 teams again. And other clubs who are teetering know what they have to do. See how Wasps started this process just after paying the players and all staff, so they could all remain under contract? That's how you do a pre-pack insolvency."
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Wait, so they are saying if Administration is kept quiet then nobody will know and everything carries on as normal?

Don't the bondholders, HMRC etc have to agree with the administrator?
 
oldskyblue58

oldskyblue58

CCFC Finance Director
Philosorapter said:
Waiting on a statement from CCC.


QUOTE="MusicDating, post: 2605883, member: 2140"]
From the prospectus -

Risks relating the head lease of the Arena granted to ACL2006

Under the terms of the head lease granted by Coventry City Council (“CCC”) to Arena Coventry (2006) Limited (“ACL2006”) in respect of the Arena (the “Head Lease”), CCC have reserved the right to forfeit the Head Lease if ACL2006 becomes insolvent.

Insolvency in this scenario means a situation where ACL2006 becomes unable to pay its debts, has a receiver/administrator/provisional liquidator appointed over its assets, has assets seized in order to pay debts of ACL2006 or has a winding-up order made against it.

The effect of forfeiture would be that the 250 year Head Lease would fall away and that ACL would then become the tenant of CCC at the Arena for the remaining 38 years of its existing lease.

However, the right of CCC to claim forfeiture of the Head Lease is not an automatic right. If CCC made a claim for such forfeiture, this could be contested by ACL2006, any third party that held security over ACL2006 and any subtenants of ACL2006 by making application to a court in England.

Further, if an administrator was to be appointed over the assets of ACL2006, then CCC would not be able to forfeit the Head Lease without the consent of the appointed administrator or with the leave of the courts.
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[/QUOTE]

So I think I am reading this right. Acl 2006 (not acl iec or wasps holdings)goes insolvent (it filed a NOI after the other companies which I assume gives a little longer time before administration) then the 250 extension disappears the old original lease remains and ACL becomes the tenant of CCC.

Wasps own ACL.

And any CCC action can be forstalled by an administrator.

So the wasps group retains control of the stadium lease whatever happens even if it is through an Administrator whose initial aim will be to save the group or parts of it as a going concern.
 
S

SBT

Well-Known Member
Deleted member 5849 said:
Yes, it's exactly the same principle. And Cov Rugby have a far more successful and high profile history than just about every other Rugby club.

It shouldn't happen, and that's that.
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Is it the same principle? This is rugby we’re talking about. I’d put it in the same category as someone deciding to move a cinema or a ballet company - I don’t give a shit and I’d be surprised if anyone else did.

Maybe there are more Cov Rugby fans on here than I know about, but I personally couldn’t care less how they’re doing. Certainly if a billionaire decides they want to take Wasps and CCFC over and turn both teams around (as some places are reporting) then I’d be delighted with that - presumably you feel different?
 
Senior Vick from Alicante

Senior Vick from Alicante

Well-Known Member
CCFC54321 said:
Serious question here as someone suggested tonight could the wasps directors be under any criminal investigation for the £35m bond and allowing the business to run massive debts? Even though back in 2018 the auditors declared the business wasn’t a going concern.

Personally I can’t see any way this can be proven that there was no intention of paying the bond back and I very much doubt this was the intention and it was all done in good faith, but it does raise the question if they could face an investigation?
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It will be down to the FCA to look at the bond side of it as they are the regulator. Would imagine they may get some pressure as it's the first bond of its type to fail and previous Wasps accounts concluded they were not a going concern or words to that effect.
 
Nick

Nick

Administrator
Does it automatically go back to the council with no 250 years as soon as ACL2006 goes into admin or is it that the Council can "call it in" if they want?
 
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