Co-op bank about to be wound up - Yahoo loan

[der Berliner 3,247]

Co-op bank about to go under

 

 

Commentated on over at FF like this (jaws73)

 

The debt facility with the Co-operative Bank of £32.4 million, made up of £20.4 million long-term loans and a £12 million overdraft.

 

The loan agreement is further split between a revolving credit facility of £6.0 million (base rate + 1%) and long-term loans of £14.4 million (LIBOR + 1.125%).

 

These are repayable in equal quarterly instalments form October 2009 to April 2019 with any balance repayable in July 2019, though there is an option to repay the loans early without penalty. These loans are secured on Celtic Park and the land adjoining the stadium and at Westhorn and Lennoxtown.

 

As far as I can determine the £20.4 million loan was being reduced at only £0.05 million per quarter so there would certainly be a huge chunk due by April 2019.

 

£18.7m they owe. £5m to be repaid or reviewed in May this year and the rest to be repaid or reviewed in July 2019.

 

Correct, it's in their audited accounts.

 

They also show net cash at bank of £3.6m. Even if they had to pay off the loans right now, which won't happen, they would still have cash left over. And that's based on the accounts to June 2016. They will have run at a profit since then based on CL group stage money.

 

RalphBrand wrote

Celtic has a " Mutual fiduciary arrangement with variable multiples", which is rather a fancy way of saying they (Celtic) have flexibility as to when and how often they service their debt. This is most unusual in the financial world, as in essence, a club/company is no different than any individual borrower who pays back a fixed rate, usually monthly but does have the option of paying off chunks of debt should the borrower have the necessary funds.

 

Celtic's 'arrangement' with the Coop, predates the banking crisis of 2007/8 because wee McCann dumped the established Scottish banks and instead opted to do business with the less august Coop bank. Very odd considering that Celtic's chairman and directors had vast experience of the British banking system. Why opt for the corner shop bank?

Well, not so strange when you see where the Scottish Labour Party and other parties have their account...........

Don't expect any of this stuff to be reported in the papers........

 

 

Should this come to pass, quite a bit of CL and transfers-out money might be eaten up by this. Wonder why no-one targeted these softest of loans as gaining an unfair advantage over other teams who have not been so lucky?