@AndrewHaigh Some complicated but significant #LUFC news coming up...a document made available by companies house. On June 14th GFH Capital loaned £2m to Leeds City Holdings by way of a Mortgage of Shares. All shares in LUFC were used as collateral. As i see it that means Bates cannot sell Leeds until he pays back the £2m to GFH Capital. So the "exclusivity period" as talked about is actually a binding mortgage agreemenet through leeds city holdings from GFH Capital. #lufc here are the details from the Leeds City Holdings/GFH Capital doc from Companies House: http://pbs.twimg.com/media/A5edkGmCEAAF6gd.jpg:large From Twitter: @AndrewHaigh OK, slight correction on that. The £2m mortgage of shares actually happened on October 5th. The June 14th date is a seperate matter all together #lufc @AndrewHaigh I suppose for GFH Capital to loan "2m to the club on Oct 5th, it must show they have a significant amount of cash? Now I don't usually listen to Andrew Haigh cos hes a knob however this came from Jud whos a top guy so stole it
No idea what it all means, I did a search to see what comes up... https://www.duedil.com/company/05765697/leeds-city-holdings-limited doesn't look like we are struggling with debt?
Why on earth would you loan money (via mortgaged shares which would be worthless in the event of administration) to Bates' company if you were trying to buy them out? It just makes the old bastard hang on longer to see what else he can squeeze out of the club.
Think it means that Bates took out a mortgage on LUFC on Oct 5th 2012 of £2m from GFH. Not sure how, because i thought mortgages weren't possible under Sharia compliancy. There is also somethign that happened on 14th June 2012, called a debenture, with Compass Contract Services. No idea how much for - £4m anyone? This is on top of £5m in Summer 2011 and the sale of season tickets for two years from Jnauary 2012. We seem to be loading debt on to our club. Rsitac - I don't thnk the club made £28m profit ever. Assets of £7m, debts of £16m suggests we are already £9m behind at the time of that article (no idea when that was, you didn't add a date) I don't think anyone has much of a clue what is going on in our club financially but I don't trust that it is being run in the best way it could be
The mortgager gest first call - preferential creditor. Just like with your house, if you only have a £10k mortgage and the house is worth £500k but you can't pay the mortgage, the bank takes the house.
Date on the link to Duedil (a respected Due Diligence Company) states April 2012 returns. We are making enough money, it is just that Bates wishes to spend it to fund his lifestyle and not what is best for success on the pitch. It is in Bates best interest to have a nice looking Gross Profit with payments and overheads going to his 'other' business interests.
Prefer the banks to have Leeds United than that cretin bastard! This whole saga makes Leeds United look stupid and its really taking the piss nobody can come out of this with any credit.
Maybe because the club can't go forward without extra funding as it does not have the money coming in. Cashflow is what kills companies - if that has dried up, he either funds it himself or brings in loans and debt - and he works on selling. Interstingly, debt-ridden clubs don't sell for much. He bought Chelsea for £1 and took on all their debt. At this rate, while GFH can prevent a sale, thye will hold on and get the club for a quid while taking on £20m of debt The most interesting one was buying a profitable debt-free club for a quid though. hmmm.
If you mean LUST's statement of the imaginary £4m loan to fund players and wages NO. http://www.purnells.co.uk/limited-company/administrative-receivers/what-is-a-debenture.html It looks more like it was Bates that would have taken it out to secure money owed to himself. Probably wages, contracts and player purchases made by Bates since the T/O talks started, meaning when they go through Bates must be paid back investment since the start of any talks? That's what it looks like to me. **EDIT** Just read another report which states they are common when a take over is happening to show the seller that the buyer means business and to gain trust that they are not time wasting so who knows. Filed financial reports ending June 2011 state the club made a profit of £3.5m with £600k sitting in the bank account - Yes we all know that could have been a lot more if it wasn't for LUFC propping up and ploughing money into Bates other ventures.
Not sure you can be so sure about the "imaginary LUST" angle. Maybe this is the £4m, they found it on Companies House records, and put two and two together. I wouldn't be so damning yet. But who are Compass Contract Services, as they seem to be the ones who have the preferred creditor status under the debenture? It is clear that the link you provided is talking about owner/directors providing loans as debentures, but I read it that a debenture holder can be anyone else too. I can understand why third parties will only deal with LUFC in this manner, guaranteeing their preferred creditor status, given the financial history of LUFC in the last 10 years. But there is only one reason for needing this debt. Bad management. Bad strategy. Bad ownership.
They. Did. Not. Say. That. They. Said. Operational. Costs. Not. Transfers. Although. That. May. Have. Been. Bates. Acting. Against. GFH's. Interests.
When I directly questioned LUST on their own blog just a couple of weeks back about the £4m stated by them for players and wages they did not set the record straight - They fully implied this is what the £4m was used for: Even on this forum there are posts and comments by BIG taken from another forum stating the same. I do not see LUST saying They. Did. Not. Say. That.
I tell you what, this is a promise to myself NOT to get involved in any debate about LUST until this is all over - While I believe I look at them with an open mind and opinion there are many on this forum that I FULLY respect and who's opinion I TRULY value yet they are so blinded by LUST and so far up their asses that I fear they might never be seen again.
You're getting a little uptight ristac. You were the one that started the trash talk about LUST, others merely countered it. This is not about being up one side's ass or not, it's about just being straight up and debating. Which we can all do, and I hope you continue to do.
a) But who are Compass Contract Services, and where do they fit in to this whole scenario? b) That was as at June 2011. A lot happend since then, and I'm sorry I appear to be repeating myself here, including having to borrow £5m in Summer 2011, selling £3.2m of shares with the promise they will be worth £4m at some future point, selling off two years of season ticket sales, reduced income through falling attendances and loss making companies and less turnover on merchandise, taking on a lot of players in the summer, taking out a debenture loan in June, and now taking a mortgage in October. Does anyone think LUFC is in a good state financially?
