Re: Club Refinance Thread
[quote author=the count link=topic=41783.msg1189500#msg1189500 date=1286317934]
My totally uneducated guess is that Hicks has secured refinancing elsewhere using the club as security and the board, as they apparently have done before, have blocked this. Ties in with what we have hear in the last couple of days.
As a counter two, viable bids have been accepted by the other (majority) half of the board to allow the club to be ultimately sold.
Legal proceedings will ensue as to whether the board ie Purslow, Ayre ans Broughton were within their right to vote against the refinancing deal proposed by H&G.
[/quote]
I think this is probably right. The Articles of Association of a company are the rules of how it (the company) is run. The only "people" who can change this are the owners (ie shareholders) and they can pretty much do what they want with a company unless they have signed away some rights by obtaining secured debt (see below). There are generally legal provisions in this area and the Company's Memorandum that say the directors have to act in the company's best interest but if the shareholders owning 100% of the company (without any covenants) want to fuck it over they pretty much can as noone else is going to sue them.
The thing that seems to have happened here is that Hicks (and presumably Gillett) have managed to virtually bust themselves meaning that they don't really own Liverpool because there is a lot of debt on the club. So if you think about this like a mortgage, the bank would have set a load of terms (as they do with mortgages) about the financing. This probably meant the appointment (or not sacking in the case of Ayres) of the 3 Board members other than the American Cunts and giving them certain rights that protect RBSs interests. If the Hicks Wanker could pay off the debt then as owners they could have whomever they wanted as directors. But they can't because until they pay off RBS there is a secured debt on the club meaning purslow, ayre and broughton are protected.
Meanwhile the two (off pitch) cunts secure refinancing based on using the club as collateral. Problem is the Board of Directors don't sanction the use of the club as security (as a board can - I think) with the result that there's no financing. It's a bit circular but that's probably why there's a load of legal wrangling going on......G&H need the board to sign off on new financing - the board are saying no but G&H can't get rid of them because of the covenants in place with RBS. Broughton et al can't say yes to a sale to new owners (because ultimately G&H still own the club) but they can say no to refinancing using the club which it looks like is the yankers only way to do it. Until RBS call the debt in we wont be sold. When they do, either G&H sell at a lower price than they wanted and pay of the debt (but don't own our club any more and hopefully make a loss) or RBS do actually seize ownership and sell off. Sounds like the first option is coming to fruition from tonights news but we'll wait and see.
Ultimately G&H probably lose this but it looks like Hicks is going to go down fighting. I really want him to go broke and die slowly and painfully of cancer on the street. I can't believe I feel like this about another human being but the man is contemptible.
[quote author=the count link=topic=41783.msg1189500#msg1189500 date=1286317934]
My totally uneducated guess is that Hicks has secured refinancing elsewhere using the club as security and the board, as they apparently have done before, have blocked this. Ties in with what we have hear in the last couple of days.
As a counter two, viable bids have been accepted by the other (majority) half of the board to allow the club to be ultimately sold.
Legal proceedings will ensue as to whether the board ie Purslow, Ayre ans Broughton were within their right to vote against the refinancing deal proposed by H&G.
[/quote]
I think this is probably right. The Articles of Association of a company are the rules of how it (the company) is run. The only "people" who can change this are the owners (ie shareholders) and they can pretty much do what they want with a company unless they have signed away some rights by obtaining secured debt (see below). There are generally legal provisions in this area and the Company's Memorandum that say the directors have to act in the company's best interest but if the shareholders owning 100% of the company (without any covenants) want to fuck it over they pretty much can as noone else is going to sue them.
The thing that seems to have happened here is that Hicks (and presumably Gillett) have managed to virtually bust themselves meaning that they don't really own Liverpool because there is a lot of debt on the club. So if you think about this like a mortgage, the bank would have set a load of terms (as they do with mortgages) about the financing. This probably meant the appointment (or not sacking in the case of Ayres) of the 3 Board members other than the American Cunts and giving them certain rights that protect RBSs interests. If the Hicks Wanker could pay off the debt then as owners they could have whomever they wanted as directors. But they can't because until they pay off RBS there is a secured debt on the club meaning purslow, ayre and broughton are protected.
Meanwhile the two (off pitch) cunts secure refinancing based on using the club as collateral. Problem is the Board of Directors don't sanction the use of the club as security (as a board can - I think) with the result that there's no financing. It's a bit circular but that's probably why there's a load of legal wrangling going on......G&H need the board to sign off on new financing - the board are saying no but G&H can't get rid of them because of the covenants in place with RBS. Broughton et al can't say yes to a sale to new owners (because ultimately G&H still own the club) but they can say no to refinancing using the club which it looks like is the yankers only way to do it. Until RBS call the debt in we wont be sold. When they do, either G&H sell at a lower price than they wanted and pay of the debt (but don't own our club any more and hopefully make a loss) or RBS do actually seize ownership and sell off. Sounds like the first option is coming to fruition from tonights news but we'll wait and see.
Ultimately G&H probably lose this but it looks like Hicks is going to go down fighting. I really want him to go broke and die slowly and painfully of cancer on the street. I can't believe I feel like this about another human being but the man is contemptible.
