Sale of Southend United to Justin Rees and his consortium

[Shrimper]

Hoping we get some good news today

 

[davewebbsbrain]

To be fair to Kerry I'm certain he would be very careful about posting anything on a public forum that he wasn't 100% sure about.

100% agree. Kerry is straight down the middle, honest and upfront. He wouldn't give out info unless it was bona fide correct

 

[bluesfansince1952]

Hoping we get some good news today

How long have we been hoping that for! Speaking personally since late May.

 

[Paddypel]

Hoping we get some good news today

The way I've heard it is that it's very much a case of getting the ducks in a row in regards to creditors the early part of this week, agreeing HOT's before weds and paying the HMRC debt. Then after Is when I think we'll hear an announcement IF the creditors are satisfied with new repayment terms.

 

[tommy tucker]

As far as im concerned no news is good news .We will all hear when the time is right .If nothing comes to light today pople dont push the panic button just yet . If we dont hear bad news from Ron .Then keep the faith the deal will go through sooner or later .

 

[kentblues]

Logically the people on the WUP would surely want a payment plan sorted rather than get naff all from us in administration. Right?
Also the fact it's not Ron and an actual grown up helps?

Having been one of the creditors more than once, of course (with the exception of HMRC) you are right. I think this is behind one or two of the public statements as well i.e. sale won't be complete by 4th and administration whilst not preferred is the alternative.

From a creditor's point of view, if you believe the above, and you believe the takeover will likely happen and the new owners will be able to fund the club going forward, you agree a payment plan to receive 100% of the debt. Its the best option by far.

The issue is, unlike a CVA where if you agree with 75% of creditors, you have agreement with all, here its creditor by creditor and there is always the risk of a creditor or two demanding their money on the day thinking they can get it all now. In theory, therefore, you can have a smaller creditor screwing over everyone else, potentially including themselves. So there will be very little said as the club work their way through what is no doubt a pretty tortuous process, whilst no doubt incorporating an element of contingency planning.

The nPower piece tomorrow is very important as they are one of the (if not the) major creditor(s). If agreement is reached with them its a good sign. Probably the significant majority of the debt is with only 4-5 creditors.

 

[bazzashrimper]

How long have we been hoping that for! Speaking personally since late May.

2008

 

[Shrimper]

Administration and another points deduction isn't great but the survival of the club is more important

 

[West Stand]

Having been one of the creditors more than once, of course (with the exception of HMRC) you are right. I think this is behind one or two of the public statements as well i.e. sale won't be complete by 4th and administration whilst not preferred is the alternative.

From a creditor's point of view, if you believe the above, and you believe the takeover will likely happen and the new owners will be able to fund the club going forward, you agree a payment plan to receive 100% of the debt. Its the best option by far.

The issue is, unlike a CVA where if you agree with 75% of creditors, you have agreement with all, here its creditor by creditor and there is always the risk of a creditor or two demanding their money on the day thinking they can get it all now. In theory, therefore, you can have a smaller creditor screwing over everyone else potentially including themselves. So there will be very little said as the club work there way through what is no doubt a pretty tortuous process, whilst no doubt incorporating an element of contingency planning.

The nPower piece tomorrow is very important as they are one of the (if not the) major creditor. If agreement is reached with them its a good sign. Probably the significant majority of the debt is with only 4-5 creditors.

It used to be a simple statement HMRC wouldn’t agree to any proposals when it came to a CVA.

Its actually quite distressing when you see a statement of affairs a it sinks in how many little people area screwed over in any for of liquidation but also just how much the fees paid to an Insolvency Practitioner is.

You are indeed correct the n power situation will reveal quite a lot .

As of today of course their debt is still outside of the WUP and in truth none of this thought that we would be concerned about n power at the time of the August hearing.

For me the worry is still HMRC they are going to have to be paid the balance of their claim and hope that others that are now attached to the WUP can be placated but just as important no other creditors have agreed with HMRC to join the petition

 

[Medway Blue]

Administration and another points deduction isn't great but the survival of the club is more important

This is where I am. It's also a route fraught with peril, in that it needs quite a few cogs to line up for us to come out the other side. If that can happen though, then it gives a fresh start with the club intact, so I would begrudgingly take it.

 

[BlueDavegit]

Sufc v npower is still on listing at Chelmsford tomorrow for court 2 at 10am, time is irrelevant as many trials will be listed for sametime

 

[West Stand]

Administration and another points deduction isn't great but the survival of the club is more important

Please don’t fall into the trap of thinking it’s a given that Administration guarantees the club’s survival

Yes it might buy a little more time initially as little as 11 days but very quickly after that any Administrator would be significantly challenged to generate enough cash to carry on trading and that’s before the issues re satisfying football and other creditors to the satisfaction of the NL

 

[Medway Blue]

Please don’t fall into the trap of thinking it’s a given that Administration guarantees the club’s survival

Yes it might buy a little more time initially as little as 11 days but very quickly after that any Administrator would be significantly challenged to generate enough cash to carry on trading and that’s before the issues re satisfying football and other creditors to the satisfaction of the NL

Exactly. The saving grace would be that I assume JR will be offering to buy the club out of Administration. If that can happen quickly then perhaps will be ok.

 

[West Stand]

Sufc v npower is still on listing at Chelmsford tomorrow for court 2 at 10am, time is irrelevant as many trials will be listed for sametime

That list was automatically generated last pm at 9.46pm. I don’t know if it’s updated during the day but if it’s still on there at 8.00am tomorrow then it’s not been dealt with

 

[West Stand]

Exactly. The saving grace would be that I assume JR will be offering to buy the club out of Administration. If that can happen quickly then perhaps will be ok.

Yet another major issue is the Administrator will have to look at proceeds of sale and if the £1 for 76% of the shares is what the market suggests at what point would that have to be upped to a point that its viewed as beneficial to creditors.

Would say all the old kits held and players sold raise more than JR is offering for the club in its entirety? Yes the EFL window is closed but only for another 12 or so weeks and if say another NL club offered a 12 week loan deal paying all wages then that would present a dilemma

The Administration has to fund the running of the business from cash generated during continued trading and if that isn’t achievable then in a blink of an eye staff will be made redundant and if any cash can be raised the Administrator is legally obliged to sell.

 

[Shrimper51]

That list was automatically generated last pm at 9.46pm. I don’t know if it’s updated during the day but if it’s still on there at 8.00am tomorrow then it’s not been dealt with

Is it not like previous High Court hearings, in that the case goes ahead but is dismissed if the bill has been paid or some agreement in place?

 

[Stan33]

That list was automatically generated last pm at 9.46pm. I don’t know if it’s updated during the day but if it’s still on there at 8.00am tomorrow then it’s not been dealt with

Surely it will b dismissed at court today if it has been dismissed ?

 

[BlueDavegit]

Have just spoken to court staff, originally listed for Basildon but now to proceed at Chelmsford

 

[Shrimper]

Yet another major issue is the Administrator will have to look at proceeds of sale and if the £1 for 76% of the shares is what the market suggests at what point would that have to be upped to a point that its viewed as beneficial to creditors.

Would say all the old kits held and players sold raise more than JR is offering for the club in its entirety? Yes the EFL window is closed but only for another 12 or so weeks and if say another NL club offered a 12 week loan deal paying all wages then that would present a dilemma

The Administration has to fund the running of the business from cash generated during continued trading and if that isn’t achievable then in a blink of an eye staff will be made redundant and if any cash can be raised the Administrator is legally obliged to sell.

If we go into admin could we see players sold to raise funds?

Would the NL finally let us use youth players in that scenario?

 

[West Stand]

Sufc v npower is still on listing at Chelmsford tomorrow for court 2 at 10am, time is irrelevant as many trials will be listed for sametime

There is a 9-15 and then a 9-30 listing for court 2 tomorrow then 4 at 10 o clock three of them are the SUFC cases.