Question for abee

[TOMOGP]

The BU paper distributed yesterday raised the point in my mind I cannot understand re the £1.3 Mill owed by BFC to GPSL, which I an sure you have tried to explain before.

Now my understanding is that GPSL owns Griffin Park but does not trade, yet it loaned the Football club £1.3 mill which the club have undoubtably spent through uncle Ron.

Now if the BU do take over from our saviour! they take over all the shares of BFC & GPSL, as GPSL is non trading it has no need for the cash to be returned, unless GPSL borrowed the money from the bank against the ground, could not the directors of GPSL then waive payment ensuring an immediate debt reduction of the £1.3 million.
I appreciate we had the cash spent it and in thery repay but I am lost

 

[Banana]

There's some background information here:

https://griffinpark.org/forums/showthread.php?s=&postid=166352

 

[abee]

1)Now my understanding is that GPSL owns Griffin Park but does not trade, yet it loaned the Football club £1.3 mill which the club have undoubtably spent through uncle Ron.

2) Now if the BU do take over from our saviour! they take over all the shares of BFC & GPSL,

1) GPS does not own Griffin Park. The stadium was "bought back" by BFC for its then book value £1.8 million a couple of years ago. The consideration was that BFC assumed loans against the stadium totalling £0.5million (Altonwood and Herting) and the balance being £1.3million is still outstanding and due to be paid to GPS by BFC on 25 June 2006 or on the sale of Griffin Park whichever comes first.

2) The current talks are for Bees United to assume the Altonwood shareholding in BFC ONLY. These are now worthless to Altonwood as they have milked all of the group taxation relief losses they are going to get and now that BFC is being run at as near breakeven as possible there is no interest to Altonwood to retain its holding. Altonwood has not suggested that it will transfer the shares it holds in GPS outside the core option agreement which has to be exercised by 31 May 2005. To do that Bees United will have to arrange for either a full re-financing or somehow persuade Barclays Bank to continue the existing facility against the security of Griffin Park only and to release the Noades and Altonwood guarantees and deposits. Bear in mind that if it went belly up and Griffin Park has to be sold then from the proceeds BFC has to pay GPS £1.3million and Altonwood owns 63% of GPS so we are talking about £0.819million going to Altonwood in a meltdown scenario.

In fact things may not be as bad as this and Noades/Altonwood could have their dicks in a vice. If Bees United tossed the keys back at them and told Barclays Bank that it was hopeless then the only way that Barclays could get its money back (without forcing the sale of Griffin Park which they would not do) is to grab the existing Altonwood deposits of £2million and ask Altonwood for a further £2.5million in hard cash. Now I am sure that finding £2.5million in readies overnight would not be a problem for a businessman as brilliant as Mr Noades rofl but it could be a request that he would rather not be faced with. So all is not lost even now and as we have heard recently (from a poster whose name has slipped my mind ) that John Mac and his merry men have excellent relations with Altonwood then I am sure that Messrs Waddington and Noades would have had the facts of life explained to them and Barclays Bank already told the consequences of not reaching an agreement that is acceptable to Bees United and furthermore...........

 

[TOMOGP]

Thanhs abee, but I am sure I read somewhere that Ron would hand over all shares in both organisations for the £1 on the preset conditions
Thanks to bananas link I found this statement by Ed

Quite simply, GPS Ltd has nothing to do with this offer.

I now understand that this isn't true and that I had misunderstood the nature of the option that Bees United had to acquire the club (including the stadium) for £1 and the shell company GPS Ltd for £100,000. Apologies if I have misled anyone.

 

[Banana]

Thanhs abee, but I am sure I read somewhere that Ron would hand over all shares in both organisations for the £1 on the preset conditions

That's correct. However that deal runs out at the end of next season.

 

[Edmundo]

Thanhs abee, but I am sure I read somewhere that Ron would hand over all shares in both organisations for the £1 on the preset conditions

Only the ones he (or rather Altonwood) owns. He won't be handing over my shares, that's for sure!

 

[Russell]

Sooooooooooooo.....

BU take ownership of BFC only during the summer, and no more than .5 nanoseconds later Noades and Waddington fall foul of that well-known corporate disease "group amnesia" and demand payment from BFC of the outstanding £1.3million due for Griffin Park.

Nah, that could never happen could it. Could it abee?

 

[Luton Bee]

Ron selling the club name and playing assets and not the ground it sits in, where have I heard that one before?