Clarification please re GP

[TOMOGP]

Bearing in mind all the rumours half truths and wheeler dealing can someone please clarify the situation re gp

1. Who actually owns GP
2. Is this a "paper" exercise
3. IF the option is exercised does this include GP
4. If it does and BU then own both club and ground does the £1.6 million have to be repaid next May
5. If it does not have to be repaid does that mean the clubs debt is reduced by that amount
6. I am sure I have missed other points so anything else

 

[Banana]

1. Brentford Football Club Ltd.
2. Not sure what the question means
3. Yes. There are two options - one for BFC Ltd. (which would include GP) and one for Griffin Park Stadium Ltd. (which is owed £1.6m by BFC ltd.)
4. Yes
5. Correct.

 

[Edmundo]

I think the answer to 4 is "Yes, unless the shareholders of BFC Ltd and GPS Ltd change the agreement."

 

[Banana]

I think the answer to 4 is "Yes, unless the shareholders of BFC Ltd and GPS Ltd change the agreement."

Maybe it should be "Yes unless the Directors of BFC Ltd and GPS Ltd change the agreement".

 

[TOMOGP]

2. Not sure what the question means
3. Yes. There are two options - one for BFC Ltd. (which would include GP) and one for Griffin Park Stadium Ltd. (which is owed £1.6m by BFC ltd.)
.

2 May have been better to use the word book keeping

3 so if this BTB is succesful are both options taken up

 

[Banana]

2 May have been better to use the word book keeping

3 so if this BTB is succesful are both options taken up

2. Still don't understand but it is a REAL DEBT that will have to be paid
3. Depends. Raising £1m does not guarantee that the options will be exercised. We have learnt that it also relies on Altonwood loaning the club £1m and on a bank refinancing.

 

[Infatuated Bees Alter Ego]

2. We have learnt that it also relies on Altonwood loaning the club £1m and on a bank refinancing.

Is this 'public knowledge' ?

 

[Banana]

Is this 'public knowledge' ?

Well I found out from JoeBourke's posts on this messageboard.

https://griffinpark.org/forums/showthread.php?p=628074#post628074

 

[Kay 4 Bee]

"While the club’s debts currently stand at £4.5 million, owner Altonwood Ltd has offered to lend the club £1 million, interest free, for the next three years, if supporters can raise another £1 million before this option expires on 30 September."

quoted from September's hm magazine http://www.hounslow.gov.uk/hm080905.htm#n5

Discuss.

 

[murphalot]

so ron noades aint tht bad a bloke offering to lend 1 mill????

 

[Edmundo]

so ron noades aint tht bad a bloke offering to lend 1 mill????

rofl

 

[Infatuated Bees Alter Ego]

Raising the £1m is the 'easiest' bit.
I know I really need to re-word that, cos a lot of good people have put in a whole load of effort, time and dough to raise that money and it has been far from easy, but there are a few other things to do when that money is raised, which may prove quite difficult with the people we have at the helm.

 

[brighton bee]

so ron noades aint tht bad a bloke offering to lend 1 mill????

well it is his fault were in this mess in the first place but i suppose he could be worse-look at wrexham!

 

[tinman]

Raising the £1m will allow us to exercise the option to take ownership. After that our need for finance is as critical as ever as I believe the projected income will still mean that additional revenue will be required to pay the interest on the overdraft.
I live in hope that once we are a 'community club' those multi national companies on the GWR will recognise what we as a club are attempting to do for the community through FITC and the Learning Zone and other projects we can develop and support us. Any finance received will go back into the community and not to an individual who owns the club.

 

[Kay 4 Bee]

Raising the £1m will allow us to exercise the option to take ownership. After that our need for finance is as critical as ever as I believe the projected income will still mean that additional revenue will be required to pay the interest on the overdraft.
I live in hope that once we are a 'community club' those multi national companies on the GWR will recognise what we as a club are attempting to do for the community through FITC and the Learning Zone and other projects we can develop and support us. Any finance received will go back into the community and not to an individual who owns the club.

As I have said elsewhere, once the option has (hopefully) been exercised, we can start on the second million.

 

[rebus]

I live in hope that once we are a 'community club' those multi national companies on the GWR will recognise what we as a club are attempting to do for the community through FITC and the Learning Zone and other projects we can develop and support us.

Those companies won't be interested in us until we are knocking about with the likes of Chelsea, Man Utd, etc. Unfair but sadly true.

 

[Gee Bee]

so ron noades aint tht bad a bloke offering to lend 1 mill????

Altonwood are desparate, imho, for cash flow. They have plenty of assets, but they need cash now without they need of further borrowing. You only need to look at their last annual report to realise this.
Releasing £1m cash and leaving an interest free loan of £1m against GP is extremely beneficial to Altonwood. They are not doing anything out of the kindness of their heart.

 

[abee]

Altonwood are desparate, imho, for cash flow. They have plenty of assets, but they need cash now without they need of further borrowing. You only need to look at their last annual report to realise this.
Releasing £1m cash and leaving an interest free loan of £1m against GP is extremely beneficial to Altonwood. They are not doing anything out of the kindness of their heart.

And the "loaned" £1million becomes a current asset fully secured in the Altonwood balance sheet and with a fixed repayment date. At a stroke Noades solves his "Brentford" problem frees up £1million in cash for use elsewhere in his business and a fixed date for his final exit. He could probably sell on the BFC paper at a discount (if he wished and given the backing security) and he no longer has to worry about any bad publicity as a "club killer". All he has to do in 2008 is to ask BFC for a cheque for £1million in accordance with the agreement signed by the BFC board of directors in October 2005.

A neat stroke.....I quite admire the way that he has played this actually.....early in 2003 he walks away from a lossmaking Altonwood subsidiary on the point of administration and final collapse and caused by the executive management of himself and his appointee Mr Gary Hargraves. He leaves Bees United to cover the ongoing losses in cash and they happily buy this arrangement. In 2005 he comes up with a scheme that frees up his £2million of deposited cash, cancels his guarantees, enables him to trouser half of the cash and lays it on which ever poor sods are on the BFC board at the time to repay his final £1million in 2008. As far as I am aware none of the John McGlashan "nudge, nudge, wink, wink, Ron will see us right and scratch a few noughts off what we owe him" hints have come to pass and Noades gets away whole.

It cannot be long before we have another article in the official programme telling us how wonderful Uncle Ron has been to us how grateful we should be to him and furthermore............

 

[beesbeesbarmyarmy]

He could probably sell on the BFC paper at a discount

He owns the Chronny as well?

But seriously, what does that mean?

 

[abee]

He owns the Chronny as well?

But seriously, what does that mean?

If all goes to plan then Noades will end up having a BFC promissary note to repay Altonwood or its assignee the sum of £1million on or before October 1 2008. The backing for the promissary note will be a second charge on Griffin Park. If Altonwood wishes it could sell the note at any time at a discount......say it is discounted at 10% p.a.then Noades could sell the note immediately for if you like £750k cash and finish with it. The "buyer" pays Noades £750k cash right away, assumes all of Altonwoods rights and then has to get the £1million from BFC on the maturity date. depends how urgently Altonwood wishes to have the cash and sever the relationship. I shall be very surprised if Altonwood don't have all of the exit doors open and if they haven't covered this one during the negotiations.

I do it all of the time in Paris.....selling Saudi paper to a local bank at a discount for immediate cash.

 

[beesbeesbarmyarmy]

If all goes to plan then Noades will end up having a BFC promissary note to repay Altonwood or its assignee the sum of £1million on or before October 1 2008. The backing for the promissary note will be a second charge on Griffin Park. If Altonwood wishes it could sell the note at any time at a discount......say it is discounted at 10% p.a.then Noades could sell the note immediately for if you like £750k cash and finish with it. The "buyer" pays Noades £750k cash right away and then has to get the £1million from BFC on the maturity date. depends how urgently Altonwood wishes to have the cash and sever the relationship.

I do it all of the time in Paris.....selling Saudi paper to a local bank at a discount for immediate cash.

See what you mean, thanks.