SUFC: The Future SUFC up for sale

[Hadleigh-shrimper]

So anything interesting from the Twitter? Kimura in/out? What’s all this administration talk is that much better ?

 

[Yorkshire Blue]

“ Once the winding up petition has been served, it is no longer simply the case of organising a pre-pack sale or placing the company into administration yourself. To use either of these options, you must apply to the court for the winding up petition to be adjourned before it can consider whether an administration order would be in the best interests of the creditors and the petitioner.”

So confirms as I said you need court permission after getting first an adjournment (time we don’t have), you still likely have to satisfy football creditors when you come out the other side (for league to issue license) AND it has to be in the interest on the WUP creditors (so that’s some of the non football creditors)

Lots of reasons why we can forget the idea. And tbh it’s only a pretty cash starved buyer you would be considered as the prize wouldn’t be worth the chase..

It wouldn’t be the buyer putting the club into administration but Ron as a last roll of the dice. If it gets the deadline and no deal has emerged what other option has he. It’s then try that or go down with the ship.

 

[kentblues]

Shouldn’t be a surprise but

https://twitter.com/x/status/1681400721432879107

 

[ALW]

Firstly, I am not an ITK or primarily a SUFC supporter but have attended RH on a few occasions and always look out for your results.

What I do have experience of is how the NL deal with situations such as this. In the past I have had contact with them in respect of four NL clubs who were insolvent. The NL will, like everybody on here, be hoping a sale goes through as it solves any problems for them. This probably explains why they have taken no action to date.

They will not have any wish to see the demise of the club as they would not want the league one team short. However, they do not like a situation where a team ceases part way through the season. They feel this adversely affects the integrity of the competition.

There are two reasons for this. Firstly, expunging a teams results can materialy affect league positions. If it is late Inthe season, there can be an effect on promotion and relegation. The second reason is financial. Some teams will have had the cost of travelling to the expunged team and not then get a home fixture against the expunged team. Other teams will have had a home game with the expunged team, but will not incur any travel costs for an away. The NL thinks this is an unfair financial distortion.

From my past experience of the NL, my view is that there is no immediate risk of expulsion. However, whilst the WUP remains outstanding, they may postpone the clubs fixtures. This gives more time for the sale process to complete and simply means some rearranged fixtures if the club is not wound up.

This is what they did with Bury FC, who were only expelled when actually wound up. With the next hearing on the WUP being August, the number of potential games needing to be rearranged is quite small. If the next hearing is another adjournment the NL may not be so happy holding matters in abeyance.

In short, I do not think there is a great risk of expulsion from the league before the start of the season. The longer this all drags on, the greater the risks of expulsion.

 

[Banksy]

Wrong

I have obviously missed your take on the proceedings. Please let me have your view.

 

[barton west]

Yes I agree with ALW, and thanks for the post.
I think we’ll see the first two or three games postponed, without any further immediate action from the NL.
We can easily lose the early games for the time being since we lose several during a season due to bad weather anyway.

 

[Ex-SouthendUnitedEmployee]

Big Kerry

 

[kentblues]

It wouldn’t be the buyer putting the club into administration but Ron as a last roll of the dice. If it gets the deadline and no deal has emerged what other option has he. It’s then try that or go down with the ship.

As a prepack Ron would still be left with football creditors and to some extent WUP creditors as it has to be in their interests. And he’’s broke so can’t see that being approved by the court (there again I was surprised he somehow got a 42 day adjournment). So right judge on the right day…
Someone else buying out of admin doesn’t help Ron, and because the club is arguably trading in an “insolvent” state a sale would need to immediate as under such circumstances the administrator can’t fund the running of the club. In effect the sale would need to be prearranged.
It’s in the interests of Ron and Kimura (or whoever if you think there is someone else) to do it now - it won’t get any more attractive

 

[shrimpereeee]

What if one or some of those creditors have personal guarantees?

It will make administration even less attractive for Ron.

 

[kentblues]

What if one or some of those creditors have personal guarantees?

It will make administration even less attractive for Ron.

Quite…eg npower…

 

[Kat_r]

So we will just be able to start the season, rm will find the money like he always does and kimura are the only hope

 

[shrimpereeee]

Quite…eg npower…

Including the single creditor who is reportedly owed £1.5m

 

[Beefy]

Firstly, I am not an ITK or primarily a SUFC supporter but have attended RH on a few occasions and always look out for your results.

What I do have experience of is how the NL deal with situations such as this. In the past I have had contact with them in respect of four NL clubs who were insolvent. The NL will, like everybody on here, be hoping a sale goes through as it solves any problems for them. This probably explains why they have taken no action to date.

They will not have any wish to see the demise of the club as they would not want the league one team short. However, they do not like a situation where a team ceases part way through the season. They feel this adversely affects the integrity of the competition.

There are two reasons for this. Firstly, expunging a teams results can materialy affect league positions. If it is late Inthe season, there can be an effect on promotion and relegation. The second reason is financial. Some teams will have had the cost of travelling to the expunged team and not then get a home fixture against the expunged team. Other teams will have had a home game with the expunged team, but will not incur any travel costs for an away. The NL thinks this is an unfair financial distortion.

From my past experience of the NL, my view is that there is no immediate risk of expulsion. However, whilst the WUP remains outstanding, they may postpone the clubs fixtures. This gives more time for the sale process to complete and simply means some rearranged fixtures if the club is not wound up.

This is what they did with Bury FC, who were only expelled when actually wound up. With the next hearing on the WUP being August, the number of potential games needing to be rearranged is quite small. If the next hearing is another adjournment the NL may not be so happy holding matters in abeyance.

In short, I do not think there is a great risk of expulsion from the league before the start of the season. The longer this all drags on, the greater the risks of expulsion.

That is very interesting, and not something I'd seen suggested before.

 

[ALW]

There is one way the company of SUFC could still enter Administration. A holder of a Qualifying Floating Charge ("QFCH") can place a company in Administration without getting the courts consent. Mezcal, South Eastern Leisure and Roots Hall Limited all seem to be QFCH. RM could therefore put the club in Administration before any winding up order is made.

If this did occur RM would still be able to sell RH and the training ground as these do not belong to the club and no Administrator would be able to sell them.

A buyer pays RM £6.5M for the training ground and RH and buys the club from the Administrator for say £500K. Provided football creditors were paid the sanction would be a 25 point deduction. This may be attractive to some purchasers

 

[CRATE]

Over 1,000 people come through the Twitter space, and peaked at nearly 800. Seems they go down well with 2 hours of chatting away! I hope tomorrow we have more to talk about. UTB

 

[Jack_23]

Over 1,000 people come through the Twitter space, and peaked at nearly 300. Seems they go down well with 2 hours of chatting away! I hope tomorrow we have more to talk about. UTB

Absolutely top draw tonight. Think it’s the laugh we all needed

 

[Barry.C]

Including the single creditor who is reportedly owed £1.5m

Wouldnt surprise me if that amount was closer to PG given the large volume of loans and funds provided to keep us afloat

 

[bazzashrimper]

There is one way the company of SUFC could still enter Administration. A holder of a Qualifying Floating Charge ("QFCH") can place a company in Administration without getting the courts consent. Mezcal, South Eastern Leisure and Roots Hall Limited all seem to be QFCH. RM could therefore put the club in Administration before any winding up order is made.

If this did occur RM would still be able to sell RH and the training ground as these do not belong to the club and no Administrator would be able to sell them.

A buyer pays RM £6.5M for the training ground and RH and buys the club from the Administrator for say £500K. Provided football creditors were paid the sanction would be a 25 point deduction. This may be attractive to some purchasers

Can someone else not buy the club though? Not saying they would given the stadium, but it would not be impossible?

Besides 25 point deduction would likely be relegation. So 2 years of reduced income as a minimum would probably be greater than £2m.

Better to pay the money - get the club moving forwards again. Loads of goodwill there now for the right buyer

 

[shrimpereeee]

There is one way the company of SUFC could still enter Administration. A holder of a Qualifying Floating Charge ("QFCH") can place a company in Administration without getting the courts consent. Mezcal, South Eastern Leisure and Roots Hall Limited all seem to be QFCH. RM could therefore put the club in Administration before any winding up order is made.

If this did occur RM would still be able to sell RH and the training ground as these do not belong to the club and no Administrator would be able to sell them.

A buyer pays RM £6.5M for the training ground and RH and buys the club from the Administrator for say £500K. Provided football creditors were paid the sanction would be a 25 point deduction. This may be attractive to some

Wouldn’t my suggestion at #15919 achieve the same result without the need for administration and the resulting points loss?

 

[* ORM *]

I’m lost. Please clarify whether we are at 95, 95.2, 95.3 or 99% status?