Yes, when Steve replied I thought it a bit strange, as it appeared to me that VT was taking on £45m of debt, which is clearly good news for the club.
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Debts owing to shareholders and other connected parties were £49m in the last accounts. I’d expect that has grown since, although the wage bill has shrunk dramatically since, we will still have been making losses.
Either way the conversion of that £45m is really very good news and puts a big hole in our massive debts.
Just need 3 points tonight now
were some people not recently telling us that VT has lost interest in us ? ? ?
wiping 45 Mill of debts might mean he hasn't after all
And we got them Tim:-)
Now that the game has finished I can comment on the shareholder letter, a copy of which was only received by me this evening.
The letter is to give notice of passing shareholder resolutions to increase the share capital by up to £45m. The resolutions will all be passed as Vincent Tan already holds the vast majority of hares in issue.
The reason that the shares are 1p ones rather than existing 10p ones is that new shares cannot be issued at a nominal value greater than their market value - it will come as no surprise to most to see that the club is worth less than 10p per share.
I have had it confirmed that the shares are being issued to enable a further debt to equity conversion but don`t know if the full £45m will be converted. If all or most of the £45m is converted this will greatly improve the club`s balance sheet and go a long way to recommencing Vincent Tan`s promise to convert all debt into shares which has been held up recently by financial constraints due to Covid.
What any conversion won`t do, in contradiction of what Steve Borley said in his tweet, is have any impact on the Profitability and Sustainability (FFP) position as debt to equity just improves the balance sheet and has no impact on the profit and loss account
Hope this helps
Keith