Ehab Speaks

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Obadiah said:
I agree. The bank loan(s) are being used to avoid relegation not repay the debt to Allamhouse.
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I have no idea what this loan is for.

But I agree completely with your other comments about a bank not agreeing to lend at the full value of the Premier League income.

They'll work on a worse case scenario and while there's any risk of withheld payments, or football creditor preference, they'll limit the funds they make available.
 
originallambrettaman said:
I have no idea what this loan is for.

But I agree completely with your other comments about a bank not agreeing to lend at the full value of the Premier League income.

They'll work on a worse case scenario and while there's any risk of withheld payments, or football creditor preference, they'll limit the funds they make available.
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I hope you & obi are right.

I cannot comprehend what else the mortgage / debenture can be for mid season, unless they plan to spend big in the next 10 days & I really really doubt that
 
Chilton's Hundreds said:
You'd have thought the banks would have learned their lessons from 2007/8.

If the Allams can manage to find a lender to take on most of the club debt, enabling them to repay the loans
back to Allamhouse, then I doff my cap at our owners business acumen.

Because if they manage to do that this club is heading one way only and that would to the courts for an admin order at some point.

But I can't see that. I can't see any lender wanting to expose themselves without insisting the owners having more 'skin' in the game as it were.
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Sensible view. <ok>
 
ImperialTiger said:
The devil is in the detail we don't get to see. 18months of tv payments is anything up to £150m at current rates. The bank will want a return on its investment. The question is how much risk they are willing to take.

£60m (arbitrary figure) for future returns of £150m is a good deal. Relegation probably reduces 18 months of tv money to £90m? Still a pretty good deal for little risk.

Allams get £60m (again, arbitrary) plus £10m for Livermore plus £10m for Snodgrass. Pay £1m for 6 month loan. Then change the sale price for the club to £1.

Just one potential scenario.
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I've only had one bottle of wine and a few brandies, or I would have beaten you to that. :emoticon-0105-wink:
 
originallambrettaman said:
It's certainly possible that they're switching personal debt to company debt (in fact it's very likely), to reduce their liability if things go tits up, but not in the manner you've detailed.

There is no 10% that goes one way or another. Any company that has debt, has to service that, whoever it's owed to. If they fail to do so, an administrator will be appointed to realise any assets and repay as much debt as possible. The percentage of debt recovered is entirely dependent on how much is realised on the remaining assets.

Why anyone would get involved in any such messing about, when they had the option of taking out all their money and leaving someone else with the problem, is completely beyond me.
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This.

They know anybody coming in is likely to repay all debts on purchase whether that be to Allams or bank so by switching the debt into the name of Hull City Tigers they are just reducing their risk.

They may also be preparing for relegation and think if their debt is reduced by say 50% (just a guess) it allows them to sell the club at a reduced price in the Championship which would be more appealing perhaps for investors. Although why anybody would buy us in the Championship with the majority of our income already gone for the next season would be surprising.

To be fair none of us know for certain but the signs are not good.
 
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