Wasps going into admin & the impact on CCFC (111 Viewers)

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GaryJones

GaryJones

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Yeeeehaaaaa!
 
SHUNT31

SHUNT31

Well-Known Member
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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Any 3rd party will be the bondholders. I don’t see how the council will be able to revoke the lease. In my opinion it will be sold to the administrators favoured party and the proceeds distributed to the bondholders at a discounted rate. If the admin procedure is anything like CCFC’s, this may be bad news for us as it could still end up in Wasps hands, albeit under a different entity.

Having said that, Wasps reportedly will lose the P share and be relegated meaning there’s no chance of them staying at the CBS, surely? Could they share at the Butts or move to the Alexandra Stadium in Birmingham?

Interesting days/weeks ahead.


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TomRad85

TomRad85

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I don't really do Twitter... has anyone abused Maton yet?

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skybluetony176

skybluetony176

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Any 3rd party will be the bondholders. I don’t see how the council will be able to revoke the lease. In my opinion it will be sold to the administrators favoured party and the proceeds distributed to the bondholders at a discounted rate. If the admin procedure is anything like CCFC’s, this may be bad news for us as it could still end up in Wasps hands, albeit under a different entity.

Having said that, Wasps reportedly will lose the P share and be relegated meaning there’s no chance of them staying at the CBS, surely? Could they share at the Butts or move to the Alexandra Stadium in Birmingham?

Interesting days/weeks ahead.


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Don’t HMRC take priority? Might not be anything left for the bond holders or anyone else once they’ve taken what they’re owed, or maybe even part of what they’re owed. If the figures being touted around are anywhere near true it could be doubtful that the administrator can’t even raise enough to pay HMRC.
 
tisza

tisza

Well-Known Member
skybluetony176 said:
Any 3rd party will be the bondholders. I don’t see how the council will be able to revoke the lease. In my opinion it will be sold to the administrators favoured party and the proceeds distributed to the bondholders at a discounted rate. If the admin procedure is anything like CCFC’s, this may be bad news for us as it could still end up in Wasps hands, albeit under a different entity.

Having said that, Wasps reportedly will lose the P share and be relegated meaning there’s no chance of them staying at the CBS, surely? Could they share at the Butts or move to the Alexandra Stadium in Birmingham?

Interesting days/weeks ahead.


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Click to expand...
Don’t HMRC take priority? Might not be anything left for the bond holders or anyone else once they’ve taken what they’re owed, or maybe even part of what they’re owed. If the figures being touted around are anywhere near true it could be doubtful that the administrator can’t even raise enough to pay HMRC.
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Don't think rugby is like football with its preferred creditors rule.
 
tisza

tisza

Well-Known Member
Sick Boy said:
As i've said before, I have some sympathy for the fans down south who had their club stolen from them but would be delighted to see them go the wall and consigned to history. Horrible club and fans.
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Think a lot of other rugby clubs' fans will be having a snicker too. Wasps telling the world they were going to number 1 rubbed many up the wrong way.
Do have sympathy for those fans who bought bonds and could lose out. Commercial investors no sympathy for not doing proper due diligence .
 
T

Travs

Well-Known Member
Been waiting for this day for 8 years so very pleased.

If Wasps are already forfeiting games then i don't see how they can reasonably expect not to get relegated.

Hopefully it signals the end of Wasps Rugby in Coventry, but i guess that is dependent on what format the "administration" takes, and of course any potential new owners of Wasps/the ground.
 
chiefdave

chiefdave

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Not sure its time to celebrate yet. We're never this lucky. Knowing how things go for us someone will probably swoop in and save them.

Although you do wonder why anyone waiting in the wings who had an actual interest in Wasps, rather than getting some of their assets on the cheap, would let them go into admin and be relegated, unless that's the only point at which they can afford to take the club on which isn't great news for them in terms of funding the club longer term.
 
Nick

Nick

Administrator
chiefdave said:
Not sure its time to celebrate yet. We're never this lucky. Knowing how things go for us someone will probably swoop in and save them.

Although you do wonder why anyone waiting in the wings who had an actual interest in Wasps, rather than getting some of their assets on the cheap, would let them go into admin and be relegated, unless that's the only point at which they can afford to take the club on which isn't great news for them in terms of funding the club longer term.
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When they get relegated, the promotion system has been scrapped also hasn't it?
 
junglej13

junglej13

Well-Known Member
[/QUOTE]
Any 3rd party will be the bondholders. I don’t see how the council will be able to revoke the lease. In my opinion it will be sold to the administrators favoured party and the proceeds distributed to the bondholders at a discounted rate. If the admin procedure is anything like CCFC’s, this may be bad news for us as it could still end up in Wasps hands, albeit under a different entity.
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[/QUOTE]

Far from an expert on the admin process but wasn't the reason that Otium were the preferred bidder when Sisu put the club into admin because effectively the debt was owed to Sisu. So in theory Otium's offer to repay nearly all the debt (by just moving money around) represented the best offer for the creditors (Sisu). This is a bit different as the debt is owed to HMRC, bond holders and other external parties. Ie. Wasps under a different guise couldn't fabricate a best offer for the rugby club.
 
fernandopartridge

fernandopartridge

Well-Known Member
Any 3rd party will be the bondholders. I don’t see how the council will be able to revoke the lease. In my opinion it will be sold to the administrators favoured party and the proceeds distributed to the bondholders at a discounted rate. If the admin procedure is anything like CCFC’s, this may be bad news for us as it could still end up in Wasps hands, albeit under a different entity.
Sent from my iPhone using Tapatalk
[/QUOTE]

Far from an expert on the admin process but wasn't the reason that Otium were the preferred bidder when Sisu put the club into admin because effectively the debt was owed to Sisu. So in theory Otium's offer to repay nearly all the debt (by just moving money around) represented the best offer for the creditors (Sisu). This is a bit different as the debt is owed to HMRC, bond holders and other external parties. Ie. Wasps under a different guise couldn't fabricate a best offer for the rugby club.
[/QUOTE]

Richardson is a big creditor though and its whether there is any precedence in the debts which is the big issue. I still think that a likely outcome of this process is that another Richardson controlled entity is able to buy the assets.
 
C

coop

Well-Known Member
I put it on here before the start of summer that wasps couldn't afford to run the CBS or rugby team and they wanted to move to Birmingham.Good fucking riddance hopefully.
 
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