Newco it is then...........

[Stefanovitch 0]

If D&P can't facilitate a CVA then doesn't that rule out Millers incubator plan too?

[Darthter 542]

Tbh mate we will never know, but PM now has this bid and the so-called bid before CW took over. I can only go on this, he has had alot to say and very little action when he has had the chance.

 

I get the impression that Paul Murray is typical upper-middle management.....spends all day in meetings, discussing what he's going to do, but never actually gets round to doing it. Brian Kennedy on the other appears the type to just get on and get things done. Unfortunately, he has come in too late!!!

[Darthter 542]

If D&P can't facilitate a CVA then doesn't that rule out Millers incubator plan too?

 

Not if my understanding of the plan is correct.

 

Miller buys the club assets lock, stock & barrel for his new company.

The existing RFC Plc is now sitting with no re-sellable assets, but £11m in the bank.

That £11m is offered to the creditors by way of a CVA. If the creditors don't accept, the company is liquidated and the £11m goes to the creditors anyway.

 

As it stands while the club has sellable assets, creditors may view them as more valuable than the CVA offering.

[Bears 0]

Frankie. Any chance you can ask your contact if Ng will re think his strategy now we know it’s a newco. Could he come into play again?

[Juancornetto 1]

If D&P can't facilitate a CVA then doesn't that rule out Millers incubator plan too?

 

Not sure, this is where it gets really murky. The assets of the club couldn't be transferred to another company without either the shareholder's permission or with the actual shares themselves surely? However if the existing company (CW's RFC Group) were to be liquidated then the shares would be an irrelevance as they would be for a worthless and liquidated company. This would mean that D&P would first have to announce that they are now acting as liquidators and then sell the assets to Bill Miller. Under FSA laws using an incubator company is illegal and it's what CW was banned from being a director for in the past. they see it as wilfully depriving creditors of any money, which it basically is.

 

How all of a sudden it becomes a feasible practice I don't know.

[Bluedell 5,329]

If D&P can't facilitate a CVA then doesn't that rule out Millers incubator plan too?

 

Not really. It only rules out the subsequent "merging" of the companies that was just put in as a platitude. I don't think Miller cares if the "incubator" ends up just becoming the club, and I'd suggest that it was always the plan.

[Darthter 542]

Not sure, this is where it gets really murky. The assets of the club couldn't be transferred to another company without either the shareholder's permission or with the actual shares themselves surely? However if the existing company (CW's RFC Group) were to be liquidated then the shares would be an irrelevance as they would be for a worthless and liquidated company. This would mean that D&P would first have to announce that they are now acting as liquidators and then sell the assets to Bill Miller. Under FSA laws using an incubator company is illegal and it's what CW was banned from being a director for in the past. they see it as wilfully depriving creditors of any money, which it basically is.

 

How all of a sudden it becomes a feasible practice I don't know.

 

A clubs assets can be sold by the administrators without permission from the shareholder(s). That is what Miller is bidding for - it renders Whyte irrelevant!!! All the assets are bought by Miller's new company, leaving RFC Plc with a shed load of debt, and a shed load of cash in the bank. The CVA is offered to the creditors, if the reject, they Plc is liquidated and the money in the bank is split.

 

If the CVA is agreed, Whyte would then own 83% of a company worth £0, no cash, no debt and no assets. Miller would then offer a nominal sum to purchase the Plc shares from Whyte (i'd offer 50p Tops). If accepted he can then merge the to companies back together.

 

The RFC Group Ltd is still a solvent company!!!

[Darthter 542]

Not really. It only rules out the subsequent "merging" of the companies that was just put in as a platitude. I don't think Miller cares if the "incubator" ends up just becoming the club, and I'd suggest that it was always the plan.

 

I think the eventual merging of the companies is a nicety, not a requirement moving forward.

[CumbernauldGers 0]

Frankie. Any chance you can ask your contact if Ng will re think his strategy now we know it’s a newco. Could he come into play again?

 

Good point mate, it just went dead with them. Tbh i just want it over with what ever happens and we can work from there.

[Bluedell 5,329]

Not sure, this is where it gets really murky. The assets of the club couldn't be transferred to another company without either the shareholder's permission or with the actual shares themselves surely? However if the existing company (CW's RFC Group) were to be liquidated then the shares would be an irrelevance as they would be for a worthless and liquidated company. This would mean that D&P would first have to announce that they are now acting as liquidators and then sell the assets to Bill Miller. Under FSA laws using an incubator company is illegal and it's what CW was banned from being a director for in the past. they see it as wilfully depriving creditors of any money, which it basically is.

 

How all of a sudden it becomes a feasible practice I don't know.

 

The assets of the company can get sold by the administrators to another company and that would not need the shareholder's permission. I don't think that they need to be acting as liquidators at that point.