bigy 0 Posted May 14, 2012 Share Posted May 14, 2012 If the Green consortium has put £8.5m into a CVA pot, and has agreement with the administrators to buy the assets for £8.5m if a CVA can't be agreed, why would a CVA be rejected by anyone? I understand that the main reason would be if more could be realised for creditors by selling the assets in liquidation than could be generated through a CVA. But in this case if the money's the same, and if there's a binding agreement to sell all of the assets to Green if a CVA can't be agreed, why would anyone reject the proposals when it's clearly not going to benefit them? I do understand HMRC's standpoint if football creditors are getting preferential treatment, but is that the only real stumbling block? 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,187 Posted May 14, 2012 Share Posted May 14, 2012 It may be rejected if Green et al can't get the money together they promised. 0 Quote Link to post Share on other sites More sharing options...
bigy 0 Posted May 14, 2012 Author Share Posted May 14, 2012 It may be rejected if Green et al can't get the money together they promised. How do you mean? That the whole agreement would fall through and we'd be back on the market? 0 Quote Link to post Share on other sites More sharing options...
Frankie 8,187 Posted May 14, 2012 Share Posted May 14, 2012 How do you mean? That the whole agreement would fall through and we'd be back on the market? I'm not sure how all this works mate as the agreement is supposed to be binding. Much more knowledgeable business/football people than me are curious at a variety of connected issues with this deal. Like them, I'm not convinced. I really want to be positive but I'm finding it very difficult to do so. 0 Quote Link to post Share on other sites More sharing options...
bigy 0 Posted May 14, 2012 Author Share Posted May 14, 2012 I don’t think anyone is, it’s just a case of waiting and seeing for us all. In terms of the CVA though is it the case that Creditors are going to get exactly the same in either scenario as £8.5m is in the pot for the CVA, and they’ll get £8.5m from the sale of assets, so either way they get the same money. If so, why oppose a CVA? Going forward is a different matter, as whether a CVA is agreed or not they need to lay down their plans for all to see. I don’t imagine season ticket sales will be through the roof unless assurances are received on that front, and unless fans can see that the consortium has the club’s interest at heart, so hopefully we’ll hear soon. 0 Quote Link to post Share on other sites More sharing options...
Juancornetto 1 Posted May 14, 2012 Share Posted May 14, 2012 It's down to the hierarchy that exists between different creditors I think, in a CVA the smaller fish are basically forced to accept the same ratio of recompense as the bigger ones. If it goes to liquidation and asset sale then the structure has to be apportioned again. 0 Quote Link to post Share on other sites More sharing options...
CumbernauldGers 0 Posted May 14, 2012 Share Posted May 14, 2012 What are the chances of us getting a CVA? 0 Quote Link to post Share on other sites More sharing options...
Thinker 887 Posted May 14, 2012 Share Posted May 14, 2012 It's hard to rate the chances. IMO it's pretty much like Green said - it's up to HMRC and how bloody-minded they want to be about it. I don't think there's a good precedent for it though. 0 Quote Link to post Share on other sites More sharing options...
Max Rebo's Big Blue Nose 0 Posted May 14, 2012 Share Posted May 14, 2012 It's hard to rate the chances. IMO it's pretty much like Green said - it's up to HMRC and how bloody-minded they want to be about it. I don't think there's a good precedent for it though. If the HMRC dont' accept a CVA surely they are in for getting diddly squat back from this? 0 Quote Link to post Share on other sites More sharing options...
Thinker 887 Posted May 14, 2012 Share Posted May 14, 2012 If the HMRC dont' accept a CVA surely they are in for getting diddly squat back from this? I'm pretty sure you're right and they'd get zero, but the suggestion is they'd do it "to make an example" of us. Apparently (and I'm only going by office chat so this could be complete nonsense) HMRC have a list of situations in which they won't accept a CVA, and unpaid PAYE is one of them. It's a unique situation though, so maybe they can see sense and compromise. Their choice is take something, or take nothing and force a newco just to p!ss us off. 0 Quote Link to post Share on other sites More sharing options...
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