CET Hoffmans OFFICIAL Bid. (4 Viewers)

[chiefdave]

Don't for a minute believe SISU won't sell if the right offer comes in.

I can see the sticking point being how much SISU want to walk away. Let's face it if you look at a business losing £500K a month with pretty much zero assets you're not going to want to pay out a lot of money but SISU will want to recoup as much as they can.

Of course this all seems very similar to what they did when they came in and didn't want to pay out all the money owed to the exisiting board however you I can easily imagine them being a lot less willing to do a deal - to be fair there's no evidence for that just a gut feeling.

Now that it's all a bit more out in the open I think it's going to be very difficult for SISU to get the fans backing against a Ranson / Hoff bid.

 

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[Nick]

Has Brody tweeted anything yet?

Maybe I could try and get Hoffmans email address and tell him to sign up on here and get the fans onside!

 

[Fluffsta]

This is the best news I have heard in ages. I had to do a double take at the telegraph in the local newsagents this morning!

 

[skyblu3sk]

Brody is currently in Russia hasn't been on twitter for a week or so by the look.

 

[hackneyfox]

So Ranson is now a knight in shining armour again?

 

[Nick]

So Ranson is now a knight in shining armour again?

You should know by now that Coventry Fans are fickle.

 

[rob9872]

If some of the refinancing was from Pro-zone some has been our revenue streams and some has been things like the mortgage on the training ground for an 'asset' which was originally acquired for nothing and has a debt on the balance sheet owing to SISU, how much has actually been invested?

Sorry if I'm being a bit thick here, but is the question not how much it is to be sold for, but how much of the debt to the secondary company they are prepared to write off? I would expect the purchase to be for a nominal £1 and then yet a further restructuring of the current debt ... or is that too simplified. OSB/anyone please?

 

[Nick]

Well if all of the debt is owned by SISU then I assume that RR / GH would need to make a deal with them to pay it back.

 

[hackneyfox]

He hasn't even made a formal bid.

http://www.coventrycity-mad.co.uk/news/tmnw/make_your_bid_to_us__dulieu_683721/index.shtml

 

[fanta80]

He hasn't even made a formal bid.

http://www.coventrycity-mad.co.uk/news/tmnw/make_your_bid_to_us__dulieu_683721/index.shtml

Worrying i need to agree with a fox but i do! Until i hear its a formal written offer thats being considered im definitely not getting excited about any takeovers.

 

[Nick]

I like this bit:

The club is not for sale but any bid that is received will be considered carefully

The club are playing the "who do you believe" game again, they have played it with so many people now it makes them look a bit silly.

It said in the main article Hoffman had been talking to Tanned Ken!

They say it isn't for sale but they want investors. So they want money for nothing?

 

[Big Mo]

This is from the same man who had a meeting with the council about buying the ricoh - struggle to believe anything the current board say

 

[Nick]

So who have the club accused of lying / lied about since SISU:

• Ranson
• Hoffman
• King
• Gunnarsson
• Council
• Jay Tabb

There is a pattern where the club keep accusing people of lying / being mistaken.

Could this be linked to those 2 managers leaving too? Were they working for Ranson / Hoffman as well?

 

[CovisGod]

Any other fans of any other club would be excited about this


Unfortunatley we've been bullsh*tted to far to many times

 

[chiefdave]

Worrying i need to agree with a fox but i do! Until i hear its a formal written offer thats being considered im definitely not getting excited about any takeovers.

isn't that an old quote that's just been recycled?

 

[Pigeon]

Its always clear as mud in the sky blues camp, never a straight answer. I hope the take over does happen, SISU are making losses left, right and centre. Whatever happens I hope it doesn't affect our buying and is done and dusted by the start of the season.

 

[oldskyblue58]

If some of the refinancing was from Pro-zone some has been our revenue streams and some has been things like the mortgage on the training ground for an 'asset' which was originally acquired for nothing and has a debt on the balance sheet owing to SISU, how much has actually been invested?

Sorry if I'm being a bit thick here, but is the question not how much it is to be sold for, but how much of the debt to the secondary company they are prepared to write off? I would expect the purchase to be for a nominal £1 and then yet a further restructuring of the current debt ... or is that too simplified. OSB/anyone please?

assuming that the new consortium (NC) is going to buy the whole group that remains ie Sky Blue Sports & Leisure Group then think you are right there is no real worth in the Balance sheet which at 31/05/10 showed accumulated losses at £17.8m. So the purchase of the company for £1 would seem correct with a restructuring of the debt it carries

Included in the debt at 31/05/10 were loans from the SISU investment funds of £24m. This together with the shares their funds own in SBSL of 13698 at £1 each would appear to be the extent of their investment to that point. The money they put in April I think we can assume will have been repaid on the sale of Prozone. Did they cover losses for the year to 31/05/11 I dont know but cashflow had to be supported to pay the bills so perhaps there were other sums prior to April that were loaned to the company. But certainly I would expect the SISU Investment funds to be looking at £24m coming back and I dont know if there is a mechanism to add interest because of the disposal (none paid to date)

So what the NC is doing is buying out the loans from SISU. Should imagine these are formal loans that investors in the SISU funds will have a say in whether they can be discounted in any way. On the otherside the NC will stress the financial position in order to discount the loans - give a SISU a way out with something. Wont be easy discussions, both parties are serious money people.

Thats my take on it anyway

 

[Hcut PUSB]

Any other fans of any other club would be excited about this


Unfortunatley we've been bullsh*tted to far to many times

Its true, I was slightly exited form about 10 seconds this morning but then had a reality check and relised it was us I was reading about not QPR and decided to hedge my bets for a while longer, just wish I had a hedge fund or the income form one.

 

[Moff]

He hasn't even made a formal bid.

http://www.coventrycity-mad.co.uk/news/tmnw/make_your_bid_to_us__dulieu_683721/index.shtml

Well if it says so on Coventry city mad it must be true. Although a bloke down the pub says otherwise so that must be true.:facepalm:

Who woke you up numpty. No one is saying Ranson is our knight in shining armour, i think we are concentrating on Hoffman. Just like that jug eared **** was your knight in shining armour when you went into admin.

 

[skyblueinBaku]

Nick, the club/board haven't lied about anything or anyone. There has, however, been a certain amount of 'mis-communication'.................

 

[Hcut PUSB]

Nick, the club/board haven't lied about anything or anyone. There has, however, been a certain amount of 'mis-communication'.................

Yes that would be it or the lack of ability to use e-mail and or fax.

 

[Moff]

Nick, the club/board haven't lied about anything or anyone. There has, however, been a certain amount of 'mis-communication'.................

You dont mean deceit do you

 

[rob9872]

Thanks OSB
r

 

[oldskyblue58]

btw Rob the last details I have of the shareholders in SBSL is at 12/11/10

5143 shares £1 each SISU Capital Private Equity Fund A
5554 shares £1 each SISU Capital Private Equity Fund B
111 shares £1 each SISU Capital Private Equity Fund D
340 shares £1 each SISU Capital Private Equity Fund C
347 shares £1 each SISU Capital Private Equity Fund E

plus 2203 shares £1 each to Arley Group which was RR's company but i dont know who those shares went to when he left if they went anywhere at all. (thats 16% btw of issued shares not 24% as reported)

Bottom line is SISU didnt actually own the group the funds they manage do

 

[chiefdave]

assuming that the new consortium (NC) is going to buy the whole group that remains ie Sky Blue Sports & Leisure Group then think you are right there is no real worth in the Balance sheet which at 31/05/10 showed accumulated losses at £17.8m. So the purchase of the company for £1 would seem correct with a restructuring of the debt it carries

Included in the debt at 31/05/10 were loans from the SISU investment funds of £24m. This together with the shares they own in SBSL of 13698 at £1 each would appear to be the extent of their investment to that point. The money they put in April I think we can assume will have been repaid on the sale of Prozone. Did they cover losses for the year to 31/05/11 I dont know but cashflow had to be supported to pay the bills so perhaps there were other sums prior to April that were loaned to the company. But certainly I would expect the SISU Investment funds to be looking at £24m coming back and I dont know if there is a mechanism to add interest because of the disposal (none paid to date)

So what the NC is doing is buying out the loans from SISU. Should imagine these are formal loans that investors in the SISU funds will have a say in whether they can be discounted in any way. On the otherside the NC will stress the financial position in order to discount the loans - give a SISU a way out with something. Wont be easy discussions, both parties are serious money people.

Thats my take on it anyway

Very useful post. If you're SISU at what point, from a business / investment point of view, do you just cut your losses and walk away?

If noone is prepared to invest in them and no buyer will take on the level of debt outlined what are there options? Would I be correct in thinking that they either have to continue covering the losses or put the club into admin and lose everything?

 

[SkyBlue_Bear83]

What ever happens I hope it is done quickly so AT can move forward with transfer targets and building the team

 

[Nick]

Joe Elliott has said that it is true about the investments etc. Just makes Tanned Ken look even more of a fibber. I wonder if Brody will be slating Joe Elliott next?

He has said that Hoffman doesn't want to take the club over.

He has said Hoffman HAS put something in writing. Yet another person saying different to the club....

It is here.

 

[Barbelian]

Hi all, first post here so be gentle with me. Was a member of GMK but can never get on there nowadays so have been lurking here for a while.

Very interesting developments with this supposed offer from the Hoff... i hope it's true. Lets face it, we've been shat on from high for so many years, no wonder we're so fickle at times. We all want the dream so any possible glimmer of hope we all get excited and rightly so. We all deserve better, for the club, the fans and the city as a whole.

What got me thinking that this could hopefully be the real deal is the fact that representatives of the Chinese Government have been here in the Midlands very recently with lots of news of investment in the area. Now this with the stories of the Hoff and Elliot recently meeting possible Chinese investors at the Varsity, could this be it?? I so hope it is, we need this. I'm keeping everything crossed but realise that this is CCFC and we always get the shit end of the deal and am expecting the worse as always.

Cheers Ian
PUSB

 

[Nick]

I wouldn't mind Chinese investors, it is working well enough for Leicester. They seem to be loving their football and you only have to look at the young Leicester owner to see he is mad for the football.

 

[chiefdave]

Joe Elliott has said that it is true about the investments etc. Just makes Tanned Ken look even more of a fibber. I wonder if Brody will be slating Joe Elliott next?

He has said that Hoffman doesn't want to take the club over.

He has said Hoffman HAS put something in writing. Yet another person saying different to the club....

It is here.

have to say if it's a case of having to belive Joe or SISU I know which side of that I would be on!

 

[oldskyblue58]

I think Chiefdave SISU are at the point where they say thats enough..... really dont envisage them putting major funds into the company. These are not normal football investors, they are not prepared to throw un necessary money away - the decisions they make are with the head not the heart. They have to do that because they are responsible to the investors in the funds they manage, its not like others where they own the money they invest.

So if negotiations with GH or any other investor are not successful then it says that the club is probably unsaleable in its present form. If then SISU investors say they are not prepared to loan more money (big distinction because it isnt investment that many seem to refer to) there is a big problem. They have sold the only saleable asset besides the playing squad, and there are some loans of about £2m to third parties coming up for payment. Doesnt leave much of an option really and administration is on the cards because the group would be incapable of meeting its financial commitments with no real plan to do so..... everyone assumes it would be SISU's decision to go for administration or not it isnt necessarily so........ HMRC are getting pretty tough on clubs and our bill to them is probably £4m per annum (as a guess).

What administration will do is buy time to get a buyer usually at a discount and to come to agreement with creditors. If that buyer or agreement is not found we go into liquidation

Sorry to be a dark cloud on a brighter day for CCFC

 

[Nick]

It is strange how Brody has gone Missing in Action. He said he is in Russia, but I am pretty sure they have the internet in Russia.

Good timing maybe?

 

[ashbyjan]

The one we want to really hear from is Onwe as he is the SISU rep - Dulieu, Clarke etc are just puppets with no authority in real terms. The whole thing is very unclear as its questionable what actual investment SISU have made, what they want back, etc. Hoffman is a top rated financial operator and if anyone could sort the tangled web that SISU have woven it is him. Whilst from what Uncle Joe has been saying its not actually Hoffman leading a consortium but simply representing interested parties. Just hope it gets resolved quickly, although cannot see that happening, as within a few hours we already have one side saying nothings in writing, the other saying it is so doesn't bode well for smooth sailing. All I can say is if these investors are good enough for a true Sky Blue like Gary Hoffman then they'll certainly do for me.

 

[Cov 4 Prem]

It is strange how Brody has gone Missing in Action. He said he is in Russia, but I am pretty sure they have the internet in Russia.

Good timing maybe?

Exactly what I thought, until he tweets that SISU have "Verbally Agreed" to sell the club in coming days!

 

[PhilWasn'tBabb]

arrh yes the "verbal agrement" not worth the paper its written on and all that.

Whatever, may or may not be happening it not going to happen quickly it never does with coventry it'll drage into the start of the season mark my words. :thinking about: