Please can somebody explain liquidation to me (1 Viewer)

[Huckerby]

For normal companies:

In law, liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.

Now, I as reading a lot of comments on news articles in the build up to the final CVA meeting, and SOME fans were crossing their fingers that ACL would reject the CVA, and we'd take the 15 point reduction and then be rid of SISU. Well this doesn't seem to be the case. So what does going into liquidation actually mean for a football club? Surely if a normal business goes into liquidation it ceases to exist, and all of its assets are sold off. But for CCFC, it seems to be that it gets a 10 point deduction and....and what? Not a lot else?

I'm just a little confused. Sorry if it's been answered already - the search function doesn't accept my captcha answers. Does going in to liquidation mean that there is ANY possibility of new ownership? Or is that just a couple of fans who didn't know what they were talking about? It just seems a little odd that the choices seemed to be either accept the CVA and get £500k back, or don't accept it and get nothing back and the club takes a 10 point deduction and that's that.

Any info is appreciated guys, sorry if i've missed something blatently obvious.

 

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[RPHunt]

There is a very good description of a certain type of liquidation given by the SFO (Serious Fraud Office) here : http://www.sfo.gov.uk/fraud/what-is-fraud/corporate-fraud/asset-stripping.aspx

Note the paragraph below and the similarity to the situation at CCFC:

What is asset stripping?

Asset stripping is taking company funds or assets of value while leaving behind the debts.
Company directors transfer only the assets of one company to another and not the liabilities. The result is a dormant company with large liabilities that cannot be met and it has to be put into liquidation
Stripping of company assets is normally done for two main reasons:

• The fraudsters deliberately target a company or companies to take ownership, move the assets and then put the stripped entity into liquidation
• "Phoenixing" - directors move assets from one limited company to another to 'secure' the benefits of their business and avoid the liabilities. Most or all the directors will usually be the same in both companies. This usually arises as a way of 'rescuing' the assets of a failing business rather than targeting a company

Suspected firms can be investigated by the regulatory arm of the Department for Business, Innovation and Skills. Hopefully Vince Cable is making made good on his promise in Parliament.

 

[BurbageSkyBlues]

If only..........

 

[jesus-wept]

And if RPHunt what you have described above is what has happened and sisu or otium or whoever are FOUND guilty what happens then to the company, sisu, the new company, otium and individuals, such as ceo Tim Fisher and/or independent director Mark Labovic or Joy Sepalla for that matter

 

[Diehard Si]

And if RPHunt what you have described above is what has happened and sisu or otium or whoever are FOUND guilty what happens then to the company, sisu, the new company, otium and individuals, such as ceo Tim Fisher and/or independent director Mark Labovic or Joy Sepalla for that matter

I think the question should be WHY THE HELL IS NO-ONE LOOKING INTO IT?

 

[jesus-wept]

I think they maybe but these things take time, whether it is as high as the SFO not sure. If it was police I think it is the City of London police who deal with serious fraud.

 

[Badger]

I think that this is why people wanted the CVA rejected. If it had been accepted i don't think an investigation could have happened

 

[italiahorse]

More importantly do SISU investment funds loose all their money (and ACL) and the Club is debt free ?

 

[sky blue zam]

heres my view on whats happened:

ccfc ltd goes into admin

we lose 10 points

administrator puts ccfc ltd with unknown assets plus golden share up for sale

4 bids go in with otium entertainment being successful as sisu is beneficial owner

rent/f&b row continues and talks break down again

cva rejected

ccfc lose 10 points and ccfc ltd regain golden share

have ccfc ltd lost 10 points for exiting admin or entering liquidation? if ccfc ltd goes into liquidation how can ccfc play in the league as the company holding the golden share has gone into liquidation? if the 10 points are for exiting admin are we due some more points deducted for entering liquidation?

im no good at this busines shite so just my view/questions

 

[italiahorse]

heres my view on whats happened:

ccfc ltd goes into admin

we lose 10 points

administrator puts ccfc ltd with unknown assets plus golden share up for sale

4 bids go in with otium entertainment being successful as sisu is beneficial owner

rent/f&b row continues and talks break down again

cva rejected

ccfc lose 10 points and ccfc ltd regain golden share

have ccfc ltd lost 10 points for exiting admin or entering liquidation? if ccfc ltd goes into liquidation how can ccfc play in the league as the company holding the golden share has gone into liquidation? if the 10 points are for exiting admin are we due some more points deducted for entering liquidation?

im no good at this busines shite so just my view/questions

I understand now :thinking about:

 

[Voice_of_Reason]

Has anyone requested the Serious Fraud Office to investigate this ? Can we rely on the Administrator or Liquidator (which could be Mr Appleton?) to request an investigation? Surely yesterday's revelations are worthy of an SFO investigation ? Who can request the SFO to investigate ? ACL ? The Trust ? MP's ? MEP ? US !!!!

 

[Warwickhunt]

Department for Business, Innovation and Skills - MMMMM! DBIS now thats going to be my favourite acronysm of the weeks

 

[RPHunt]

Another paragraph from the SFO site, if anyone feels inclined:

Should I report to the SFO?
We only conduct investigations into asset stripping where the seriousness and complexity meets our acceptance criteria. If you have information about asset stripping that fits this criteria, then please report it in confidence using our secure online reporting form. You can also send details to us in writing at: SFO Confidential, Serious Fraud Office, 2-4 Cockspur Street, London, SW1Y 5BS.

As Vince Cable is the Secretary of State for Business, Innovation and Skills, his department may already have this in hand.

 

[sky blue john]

Another paragraph from the SFO site, if
anyone feels inclined:

Should I report to the SFO?
We only conduct investigations into asset stripping where the seriousness and complexity meets our acceptance criteria. If you have information about asset stripping that fits this criteria, then please report it in confidence using our secure online reporting form. You can also send details to us in writing at: SFO Confidential, Serious Fraud Office, 2-4 Cockspur Street, London, SW1Y 5BS.

As Vince Cable is the Secretary of State for Business, Innovation and Skills, his department may already have this in hand.

Somehow i can't see Grendel and True sky blue filling in one of these forms !!!!

 

[shmmeee]

So does anyone know what the liquidation process is now?

Is a liquidator appointed or is it Appleton? Can complaints about him be made? To who? When does the investigation kick off? What's the timescales?

 

[Huckerby]

Thanks for the replies guys. The SFO site info is very interesting.

I'm still not so sure on what the liquidation process is though? As somebody else asked - so we get deducted 10 points and can then carry on debt free with the golden share? Or is there an investigation, and if so - with what aim i.e. final outcome? It all seems to be one huge grey area, and the FL are hardly firing out information to everybody with regards to the situation. Didn't Chester FC go into liquidation and they just ceased to exist? As did Rangers? Whats the difference?

 

[Badger]

I think that if there is an investigation and if some of the things that have been suggested have really happened we could end up like Rangers or Luton.

I believe that if the CVA had been accepted there would have been a cooling off period. Does this apply if the CVA is rejected also?