I wrote on another thread a few days ago about the risk of "piggy backing" the petition and thought this was inevitable. I guess the stark reality is now find several hundreds of thousands in 6 weeks to placate the petitioning creditors or R&D is no more. The best we fans can hope for now is if someone feels we're worth buying out of a pre-pack Administration (albeit probably at a lower level), although sadly this is very unlikely to help the creditors.
To those who criticise Diamonds Mad, I think you are way off the mark. I don't know her personally, but suspect it is precisely because she loves the club she loaned £110k of her own money to help. A number of us are sitting on our £200-£300 season ticket money because of the situation and Ms Wignall is light in the wallet of £110k!! I fully respect her right to do whatever she can to recover that money given the apparent circumstances in which it was loaned. Who wouldn't do the same? I suspect this is more an issue between the personalities involved with the club unfortunately in the middle.
Winding Up Petitions are usually a last resort for desperate creditors to get whatever they can and most file them fully aware they could get nothing. It can however flush out those who do have funds and will pay up if their business survival is threatened. It's ultimate corporate brinkmanship really and does find out if cash is there or not. It will be interesting to see if PBDevs survives all this or whether any insolvency of R&C FC Ltd will bring it down too.
oh and 5ok is owed to me by pbdevs and a statutory notice has been served on them with three weeks to pay before official winding up proceedings begin.
This is for a 7 day loan made at the start of March and still not a penny repaid. That shows you how true to their word the Beasants are.
Stalin wrote:So am I right in thinking once a company issues a winding up notice the defendant has no option but to find the funds to pay the outstanding amount?
So if thats the case the club now HAVE to find at least £120,000 by mid June?
Not necessarily in full, but you have to placate them to an extent that they will withdraw the petition. At this stage, especially if a business is in genuine distress creditors will often accept a % of the debt, knowing in a few short weeks they could lose the lot. A petition really is often last throw of the proverbial dice for a creditor.
The problem is the more creditors that support the petition the greater the need for quick cash and more cash. It cuts down the room for manouvre enormously and therefore is very serious. There is also a legal problem for the Directors at this stage as they have a duty to treat all creditors equally and it could be illegal to settle a some creditors over others, regardless of whether they have petitioned.
The other point to consider here is that, from all the information we have available, the club is technically insolvent, i.e. it does not have sufficient assets to fulfill it's liabilities.
I believe that by continuing to trade whilst aware of this the directors may be acting illegally and could be liable to prosecution if it is proved to be the case.
As far as I can see the only real assets in the club are the players unexpired contracts, which in the current circumstances must be pretty worthless.
Unfortunately the prospects of any creditors getting their money seem remote. If the winding up order succeeds the club will be liquidated but there would be precious little, if any, money left for distribution to creditors at the end of the exercise.
rushdenman wrote:
Unfortunately the prospects of any creditors getting their money seem remote. If the winding up order succeeds the club will be liquidated but there would be precious little, if any, money left for distribution to creditors at the end of the exercise.
Which says to me, hold on in there and see if PBDevs can become profitable. I guess it'll all hang on what gets put forward today though? SB said in the NLP they were looking for a CVA that pays back 100%, but it would seem reasonable to expect a return on that "investment" for people like Gill who have put so much faith/ cash into it in the past, even if it's to cover their costs of the petitions.
Two of Diamonds wrote:..... if PBDevs can become profitable.
What concerns me most is that football club income may have been used to set up a separate business started by the Beasants causing all the recent cash flow problems experienced by football club creditors.
Robbing Peter to pay Paul has been mentioned by other posters. :evil:
Two of Diamonds wrote:..... if PBDevs can become profitable.
What concerns me most is that football club income may have been used to set up a separate business started by the Beasants causing all the recent cash flow problems experienced by football club creditors.
Robbing Peter to pay Paul has been mentioned by other posters. :evil:
