Having used pretty much the same play book when they "bought" CCFC out of administration you would think they understood the process going on. The frustrating thing is that they do not seem to have tested the administrators resolve until the last couple of days when it was too late because of exclusivity period (a common process in deals)
The whole process didnt start in the last couple of weeks it has been going on much longer than that. Wasps filed their NOI 21/09/2022 that was the trigger date not when ACL filed NOI because of the ownership and charges links
Whilst CCC have it seems approved a lease for the stadium with MA, did SISU even express a serious interest to the administrators sufficient to mean the administrators had a choice to make or compelled to put both bids forward. Pretty certain the only other serious interest that led anywhere was NEC. Of course, CCC are closely involved as freeholder they have to be. It is FRP that have advised who the preferred bidder would be though....... that was decided a while back i suspect.
The plan if Byng is to be believed, not sure i give him much credence to be honest, was to wait till no one buys ACL or doesn't do a prepack arrangement then to swoop in to buy a new lease and associated fixed assets at a knock down price from an administration that CCFC as a very minor unsecured creditor had no control of. Could they have outbid MA even in that situation?
They wanted a new lease, isnt the logic of such a thing that the existing and related leases all fail and have no worth. Not only shutting, at least for a time, the stadium but every other business operating there - including the casino? I assume everyone would need to acquire new leases at increased rent
The delapidations, well yes there are those costs but what is involved. Is it the bricks and mortar of the stadium or is it bringing major equipment like fire & safety, lifts etc up to current standard? It wont need to be done day 1 and the net cost of £13m could be nearer to £10m after corporation tax relief at the new rate is taken in to account.
Of course in a prepack situation you choose the assets that will be valuable to you then leave the "baggage" behind. So where is the baggage problem?
It is quite likely that the stadium would have to be closed to get the delapidation costs done in one go, so it could be sold on without that burden. Only CCC would be in a position to do that and the chances of lease reverting CCC to the detriment of the bondholders without significant legal challenge is remote - meaning very likely the stadium being shut longer because ownership would need to be settled so work could be done. How many home games left this season?
Far from no one wanting the current lease, or taking on the delapidations, it seems someone does. If the administrators receive more money from the prepack than an aggressive administration process that basically removes the existing lease for little or no value how is that worse for ACL creditors?
It is also not the case that NDA's are unusual, SISU have used them regularly. I am sure they are well aware of exclusivity periods. No point complaining its unfair, thems the rules of the game they know well.
Whilst they were attending meetings with council, ACL etc to keep the stadium open was that not a good time to express a serious interest in acquiring the stadium or to set up proper meetings to discuss with FRP or CCC?
The administration on 17th could well be the date that ownership changes and what is left in ACL gets ditched, not the start of a process that allows anyone else to bid further. What's the betting the MA exclusivity period runs to midnight on the 17th
just looks like more smoke and mirrors to me from CCFC owners, and "we tried but everyone else we can think of stopped us achieving purchase of the stadium". Not for the first time SISU have got their timings and plan wrong it looks like
Of course the MA deal could still fall flat on its face but that is looking increasingly less likely.
Also logically it isnt just the lease that MA would be buying. To have business as usual he would have to buy the Fixtures, Fittings, Equipment, stocks, the sub leases or licences, any goodwill etc (less delapidations of course), it is the creditors & liabilities he wont be buying in to.
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