Howardroark

There isn’t enough to pay wages and you can’t show preference to creditors. The funds are also restricted by the WU, which in itself prevents preferential treatment of creditors. On the day the wages weren’t paid, every employee became a creditor. Prior to that the funds were coming from KA so not considered part of the clubs inward funding.

Just a note on Bassini, the amount of cash he needs to make good on all of his promises thus far is £70M. That he’s still running round the City trying to raise this is indicative of the delusion. Why does he want the club so badly?

Yes exactly

I imagine the plan has always been to get to admin with a large amount of players and staff off the books. There are a lot fewer stadium costs over the summer too, especially with concerts cancelled etc. This means the running costs are vastly reduced. A 2 month period of supporting skeleton staff and low running could be funded by the funds that are in the company accounts (the funds that the EFL alluded to).

Yes, they did it to prevent shitty owners from racking up debts & walking away from them with ownership in tact.

Yes, they have certain duties that have possibly not been met

I don’t thank Bassini was party to any deception, I think he was outed before he had chance to get the money together. He does genuinely have some cash and property but nowhere near enough for this. Don’t think he’s being taken seriously by creditors either.

No administrator would take on a contested administration and no buyer would buy during it in case it was found in Bassini’s favour.

It depends, there are a number of finance directors who might be getting a bit nervous too.

Bassini needs to stand down and allow KA to do it, that’s the only way now.

And therein lies the unfortunate genius of KA and Bassini the pasty. KA can’t put us in to admin because of the issue with the Bassini contract (although I highly doubt it’s legal validity). Essentially exonerating him of blame as to why admin didn’t occur. Moonshift putting us in to admin nets him £5M. Genuinely the best thing is for Bassini to formally step away now as that at least makes KA culpable.

The only thing admin via Moonshift achieves is a £5M payday for KA, some might say that was his plan all along. The problem is that whilst i’m sure a potential buyer would happily offer £5M to Moonshift to place in to admin, due to the potential £20M savings, there would be no guarantee that making this payment would lead to a successful acquisition as they could be gazumped by another party. That’s the issue with the EFL banning pre-packs, it opens up an auction. Therefore there is literally zero incentive for Moonshift to put the club in to administration.

Yes, admin supersedes the WU order

What’s quite clear is that the ST have been offered a little sweetener. Seeing as they get ‘first dibs’ on a purchase from admin, it makes sense for an interested party to team up with them to get the jump on the other bidders. Probably offered them some cash and may a non-exec position, possibly a wig for Will Jones too. The funding will presumably be to pay their legal costs in drafting a new agreement. Although odd that they don’t have any solicitors within their ranks offering pro bono work. The club has the funds to support itself through a summer administration period.

KA only benefits from a solvent sale if his terms are agreed to and that’s now unlikely. Moonshift benefit from a solvent sale as they get the £5M back plus whatever percentage they agree on the unsecured debts. KA benefits to the tune of £5M if Moonshift trigger admin. Moonshift immediately lose £5M by triggering admin. The 10 days gained by announcing the intention to appoint administrators is simply to give another party time to provide either KA or Moonshift with an offer that compensates them for triggering administration. Bassini can’t make that offer because neither party believes he has the funds.

It doesn’t really, but it helps KA and Bassini

From what I hear there won’t be administration tomorrow, but will probably be something called a ‘notice of intent to appoint administrators’. This would suspend the court action for 10 days without triggering administration https://www.begbies-traynorgroup.com/articles/insolvency/what-is-a-notice-of-intent

Bassini won’t be able to buy If administration occurs as typically an administrator won’t accept loaned funds as payment, likewise EFL won’t approve if it’s majority from 3rd party loans. My guess is that he’s trying to achieve a leveraged buyout and is doing the rounds of the sub-prime market. The biggest indicator of how ‘Close’ he is would be that he doesn’t even have a vehicle in place (LTD company) to acquire the shares of Burnden Leisure unless it’s via a Scottish partnership.....or through his restaurant.

There’s a relatively small network of brokers used for these transactions, but how many were contacted outside of that I don’t know.

Yes they have, as have EFL

Assume he’s on the list of those that were approached by EFL

There are some family funds and some commercial property, unfortunately they are mortgaged so couldn’t raise against.... not that he understands that particularly

Couldn’t verify so assume rumour

No, there’s more than one creditor on the WU

With the exception of Steve Morgan, no names have really been mentioned.