CCFC (Holdings) Ltd - Shareholder Written Resolutions : good news or not?

[jon1959]

There is a thread over on **** which starts with a copy of the letter to shareholders that arrived today. It is all about issuing new shares and converting 'security into shares' (debt into equity?) up to a total value of £120m. The purpose is to comply with Football Fair Play and to improve the balance sheet by reducing the level of debt owed to the majority shareholder:

http://www.cardiffcityforum.co.uk/vi...p?f=2&t=179076

On the face of it this is further evidence of the club and Vincent Tan delivering on their debt to equity promise.

However, I don't understand the detail - the timescales, the status of the Malaysian regulator's approval, the effect on minority shareholders.... etc.

Can anyone (Keith?) give an explanation?

Thanks.

[Feedback]

special resolution requires 75% approval per company law. shareholders are being asked to:

1 - approve the new issue of shares (ordinary resolution)

2 - waive their rights in law to have a fair proportion of those new shares. (special resolution)

tan owns more than 75% of stock so its a foregone conclusion, unless sny shareholder agreement says otherwise

[Since62]

There is a thread over on **** which starts with a copy of the letter to shareholders that arrived today. It is all about issuing new shares and converting 'security into shares' (debt into equity?) up to a total value of £120m. The purpose is to comply with Football Fair Play and to improve the balance sheet by reducing the level of debt owed to the majority shareholder:

http://www.cardiffcityforum.co.uk/vi...p?f=2&t=179076

On the face of it this is further evidence of the club and Vincent Tan delivering on their debt to equity promise.

However, I don't understand the detail - the timescales, the status of the Malaysian regulator's approval, the effect on minority shareholders.... etc.

Can anyone (Keith?) give an explanation?

Thanks.

Out until late tonight with work commitments but will comment later but basically this I I step on the way to making the debt to equity promise a reality

[Auntie Andy]

Great news.

Who'd have thoughts it. Cardiff City a well run club with an owner who's keeping his promise on converting debt to equity.

And the Abertawe White Sox, sold down the Swanee by Sir Huw, The Trust and the Yankee Doodle Dandies.

[insider]

Great news.

Who'd have thoughts it. Cardiff City a well run club with an owner who's keeping his promise on converting debt to equity.

And the Abertawe White Sox, sold down the Swanee by Sir Huw, The Trust and the Yankee Doodle Dandies.

[blueslippers]

Great News,
For the first time in a long time it feels like we're heading in the right direction whilst their going in the opposite direction at The Statue of Liberty Stadium!

[blue matt]

Great News,
For the first time in a long time it feels like we're heading in the right direction whilst their going in the opposite direction at The Statue of Liberty Stadium!

fair play, that made me laugh, even lost a mint M&M as i laughed

[Since62]

There is a thread over on **** which starts with a copy of the letter to shareholders that arrived today. It is all about issuing new shares and converting 'security into shares' (debt into equity?) up to a total value of £120m. The purpose is to comply with Football Fair Play and to improve the balance sheet by reducing the level of debt owed to the majority shareholder:

http://www.cardiffcityforum.co.uk/vi...p?f=2&t=179076

On the face of it this is further evidence of the club and Vincent Tan delivering on their debt to equity promise.

However, I don't understand the detail - the timescales, the status of the Malaysian regulator's approval, the effect on minority shareholders.... etc.

Can anyone (Keith?) give an explanation?

Thanks.

Just got in.

This share issue means that the debt to equity swap can now take place- previously there were not enough in issue to enable the debt conversion to take place.
Although the shares have a nominal, or face value of 10 p all previous shares have been priced at 15.69p each. Therefore 1.2bn shares at a price of 15.69p would enable up to £ 188m of debt to be converted. At a cheaper sale price of 10p each it would allow £120m of debt to be converted.

If and when Vincent Tan now carries out the actual conversion it will be a huge improvement in the balance sheet as it will convert repayable debt into non repayable shares. It won't actually impact on FFP though as FFP only relates to transactions through the profit and loss account which a debt conversion to shares isn't.

[Vimana.]

Wow.

[the other bob wilson]

Just got in.

This share issue means that the debt to equity swap can now take place- previously there were not enough in issue to enable the debt conversion to take place.
Although the shares have a nominal, or face value of 10 p all previous shares have been priced at 15.69p each. Therefore 1.2bn shares at a price of 15.69p would enable up to £ 188m of debt to be converted. At a cheaper sale price of 10p each it would allow £120m of debt to be converted.

If and when Vincent Tan now carries out the actual conversion it will be a huge improvement in the balance sheet as it will convert repayable debt into non repayable shares. It won't actually impact on FFP though as FFP only relates to transactions through the profit and loss account which a debt conversion to shares isn't.

Thanks Keith, none of this represents a confirmation that the Malaysian authorities have okayed the debt to equity conversion of £60 odd million which we were told would be in the 15/16 accounts does it?

[Since62]

Thanks Keith, none of this represents a confirmation that the Malaysian authorities have okayed the debt to equity conversion of £60 odd million which we were told would be in the 15/16 accounts does it?

No it doesn't Paul.

[Former Labour leader]

Thanks Keith. One small step forward then towards a debt free club.

[Lawnmower]

Thanks Keith. One small step forward then towards a debt free club.

Exactly.

Slowly off the field we are recovering.

Just need to stay up this year now and build for one final parachute funded crack at promotion next year