Birch's job as an administrator is to get the best possible outcome for all/most of the creditors. If he decides that the best solution is to wind the club up to prevent further debts/losses then so be it. He is only doing his job. Trying to keep the club alive is to some extent 'an option' but not his outright priority.
Not sure that Chanrai can just step in again. Surely he would have to get it out of administration and that would cost serious money. The only thing he can do is inject a bit of money to keep it going, but control would remain with Birch.
Last time Fran that decision was made by the High Court - it will probably be the same again. Where's Hotbovril when you need him?
I read that as well. I also read elsewhere that he's going to court on Tuesday. There are a number of reasons it could be, one being the funds (£300k) held by UHY Hacker/Admin Andy which Birch says should have been handed over and AA says is to cover their own costs.
Surely any cash into the club would not be allowed to be added to the current debt, as it would immediately reduce the payments to existing creditors because their percentage of the total debt would shrink. If Chanrai wants to own it, surely he has to sort out a new CVA and attempt to come out of administration? If he is injecting cash into the business to keep it solvent so that it can be sold, then he would have no security against the amount, and would potentially lose it all if a buyer couldn't be found. That was my understanding of the situation, however I would appreciate it if one of our resident legal brains can put me right.
Heard on the radio that birch will be in court on the 9th. He will put forward whether he thinks the club should be liquidated or not.
Well, as I see it, for Chanrai to assume control until a new owner is found, that would mean that he would have to commit sufficient funds to bring the club out of administration officially. Just throwing a bit of cash at the problem in order to see the club through the season does not fulfil the administrator's obligations. In that respect, Chanrai would simply be a benefactor rather than an owner as Birch would still be in control. He would have to be stark raving mad to do it. I think it's just a sound-byte.
I'm really surprised that Chanrai doesn't just accept that he isn't going to get the whole £17m back and agree a smaller sale fee - just cut his losses really.
Could it be the end of his whole business, if he had to do that? I have no idea about his personal wealth, though.
Thank you, hopefully so! But if he had that little personal wealth, he wouldn't have loaned 17 million to someone he had apparently never met.
How did the "pack the shack" event go? Surely selling out the home ends would be a great sign for any potential investers.
