rbr 1,247 Posted October 30, 2017 Author Share Posted October 30, 2017 I think the team need it more mate , thats all , why the need to pay off % free loans quickly is beyond my thinking , but then im just a typical fan 0 Quote Link to post Share on other sites More sharing options...
union 0 Posted October 30, 2017 Share Posted October 30, 2017 There is no way on this planet that anyone will ever get first dibs before this board,isn’t that obvious. 0 Quote Link to post Share on other sites More sharing options...
calscot 0 Posted October 30, 2017 Share Posted October 30, 2017 I think the team need it more mate , thats all , why the need to pay off % free loans quickly is beyond my thinking , but then im just a typical fan The team need what more? By eschewing swapping equity for loans, you don't end up with any more money. However, having zero debt, makes it easier to borrow more... Also by consolidating control of the shares, it makes it more comfortable for the board to open up a more public share issue which also raises more money. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,329 Posted October 30, 2017 Share Posted October 30, 2017 I think the team need it more mate , thats all , why the need to pay off % free loans quickly is beyond my thinking , but then im just a typical fan There's no cash involved, so it doesn't impact the team. The loans are just converted to shares. 0 Quote Link to post Share on other sites More sharing options...
craig 5,198 Posted October 30, 2017 Share Posted October 30, 2017 g No but they would be getting the equivalent value transferred from debt to equity , and they did state at the last AGM that was what they intended to do with the first share issue . I just feel it's far too early . Transferring to equity is not a CASH transaction though - it is a simple paper conversion from debt to equity - it doesn't affect the cash received. As FS says, the unissued shares are a complete red herring because, with shareholder approval, the unissued stock of the company could be increased to any number they wish - and you can then issue new shares. Put simply... if we raise 20 million from a share issue, including from T3B & King, that doesn't mean that their soft loans have to be repaid from it. Indeed, it doesn't mean their soft loans will EVER repaid if they never ask for them, if they write them off (would be tax consequences), or if they converted. So, from that 20 million, there is every chance that the full 20 million goes to the club... AND the soft loans could be converted to equity. 0 Quote Link to post Share on other sites More sharing options...
craig 5,198 Posted October 30, 2017 Share Posted October 30, 2017 yes I understand thst, I also understand that the last accs say some loans are repayable on 17th December. The party providing the loan (assuming it is T3B or King) are at liberty to extend the repayment date. Nothing to prevent it. 0 Quote Link to post Share on other sites More sharing options...
craig 5,198 Posted October 30, 2017 Share Posted October 30, 2017 Not sure why you think it's too early. It's surely in the company's benefit to have it done as quickly as possible to improve the balance sheet? I think rbr's issue is the misunderstanding that the conversion from debt to equity somehow means that the club lose a financial benefit. It doesn't. 0 Quote Link to post Share on other sites More sharing options...
craig 5,198 Posted October 30, 2017 Share Posted October 30, 2017 I think the team need it more mate , thats all , why the need to pay off % free loans quickly is beyond my thinking , but then im just a typical fan You need to see this in these terms rbr : "Cash" and "non-cash" The conversion from debt to equity is a "non-cash" transaction. So if it is non-cash there is no money going to the team from this transaction. It really is that simple - and I am certain we have been over this ground before on here. 0 Quote Link to post Share on other sites More sharing options...
Uilleam 5,429 Posted October 30, 2017 Share Posted October 30, 2017 I think rbr's issue is the misunderstanding that the conversion from debt to equity somehow means that the club lose a financial benefit. It doesn't. I think that some people are confused, and some deliberately sowing confusion. 0 Quote Link to post Share on other sites More sharing options...
Uilleam 5,429 Posted October 30, 2017 Share Posted October 30, 2017 There is no way on this planet that anyone will ever get first dibs before this board,isn’t that obvious. First dibs on what? 0 Quote Link to post Share on other sites More sharing options...
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