Could ACL be playing in to SISU's hands (1 Viewer)

[mattylad]

Now this is total speculation by me but its been rumbling round my head so I am going to put it down in type.

As we know SISU's original investments to CCFC is made up of a number of different equity pots each one believed to be backed by a different investor. (Onye we think was one but we don't know who the others are)

We know that these investors have long since refused to put any further money in and that it is SISU themselves now paying the bills.

There is potential that if CCFC go into administration via SISU that under a contract penalty clause some of the original investment will need to be repaid by SISU (such contracts do exist to stop investors being swindled)

This porbably could not apply if a third party is the one placing the club into administration.

Thay then put in place a CVA rescue package with a guarantee of 4 years funding for the club (say 10 million) and then carry on but without the burden of having the investor debt in placed.

Potentially SISU could for not much money write off a large chunk of £20m-£30m it has taken off investors who have long since refused to put more in.

Now they also need to get the administrator to accept the offer but I would guess anything north of 8p in the pound will be enough.

Farfetched = definitely
Have I had too much comic relief chocolate cake and coffee today = definitley
Would I put it past SISU too be so audacious = ?????

 

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[oldskyblue58]

You have to assume that SISU have some sort of a plan.

Certainly going into administration is an insolvency event and therefore could trigger actions relating to the investors.

I am just guessing but I dont see ACL accepting CCFC playing at the Ricoh if SISU remain owners though so any plan to administrators is going to involve the club being elsewhere.

Another option is that it could trigger crystallisation of the losses and SISU get some tax back

sure there will be plenty of twists yet.

 

[Tank Top]

Now this is total speculation by me but its been rumbling round my head so I am going to put it down in type.

As we know SISU's original investments to CCFC is made up of a number of different equity pots each one believed to be backed by a different investor. (Onye we think was one but we don't know who the others are)

We know that these investors have long since refused tot any further money in and that it is SISU themselves now paying the bills.

There is potential that if CCFC go into administration via SISU that under a contract penalty clause some of the original investment will need to be repaid by SISU (such contracts do exist to stop investors being swindled)

This porbably could not apply if a third party is the one placing the club into administration.

Thay then put in place a CVA rescue package with a guarantee of 4 years funding for the club (say 10 million) and then carry on but without the burden of having the investor debt in placed.

Potentially SISU could for not much money write off a large chunk of £20m-£30m it has taken off investors who have long since refused to put more in.

Now they also need to get the administrator to accept the offer but I would guess anything north of 8p in the pound will be enough.

Farfetched = definitely
Have I had too much comic relief chocolate cake and coffee today = definitley
Would I put it past SISU too be so audacious = ?????

This message is encoded and will self destruct in five se
BOOM..........

 

[SonofErnie]

I don't think SISU will want to go down a route where effectively they are telling their investors we are writing off 90% of your money. It hardly enhances the companiy's reputation and has other investors knocking down their doors. It could be a fatal blow to SISU.

 

[mattylad]

I don't think SISU will want to go down a route where effectively they are telling their investors we are writing off 90% of your money. It hardly enhances the companiy's reputation and has other investors knocking down their doors. It could be a fatal blow to SISU.

I considered that but if I am investing in an area that SISU are successful in do I really care if the football part has failed? After all I am not investing in that part of its operation.

 

[oldskyblue58]

If SISU are acting properly for their clients they will already have written the value of the investment down to £nil though ............. so the investors have in effect already taken the hit.............. FSA rules would require annual reports on value etc

 

[torchomatic]

SISU threaten liquidation so in turn ACL threaten administration which could still lead to liquidation. Posturing and chest beating on both sides. Personally, I think it'll probably be sorted out before next Friday. But, who knows?

 

[Flying Fokker]

SISU might not want to play at the Ricoh