Conversion of debt to equity The current position is that periodic conversions of debt into shares have continued since the commitment to do so was made in early 2016. Since the latest published accounts date of 31 May 2016 another £20.7m of debt has been converted into shares, the most recent conversion being in June 2017. The Trust`s understanding is that Tan Sri Vincent Tan is committed to make the club debt free by further debt to equity conversions in the near future, subject to compliance with the regulations controlling such transactions. http://www.ccfctrust.org/?p=5013
I read that DJ. Good news and Tan true to his word. Still a way to go but heading in the right direction.
Early negative issues aside, I'm glad we've got Tan pulling the strings rather than some of the other "cut and run" jerks owning clubs. He does what it says on the tin and he's not daft either. He doesn't need to do it but converting debt to equity could be a very smart move. It appeases the supporters by ensuring he has no motive to cash in his chips to recover the money - and also one other major financial factor. If he can get City up to the Prem, then with the new TV deals, the club's value will rocket. The projected guaranteed income stream of at least £300M even if we went back down, and an estimated £1B if you can avoid slipping back for 2 years is mind boggling. With the club debt free by then, the guy could be sitting on a goldmine and good luck to him.
Now the 'playing in red' issue has been resolved there's very little to whinge about with Tan. The short term bit about reducing debt is it helps balance the FFP equation as well. We had good business men at the head of the club since Tan arrived. With Colin we now have a football man at the head of the club and Tan knows it. Tan needs to ensure that promotion or not, manager or not, Warnock has a longer term engagement with the club. Tan, Dalman, Choo and Warnock could be a potent combination.
Fantastic news and such a contrast with those yanking the strings just down the road. Shame for tem but just rewards after the crap they enjoyed throwing at us. I feel sorry for them! Schadenfreude or what!!!
