[Archived] Administration

[philipl]

I can see the word Administration cropping up on a number of threads.

The reality TODAY is that following the £25m recapitalisation of Venky's London Ltd, we are not at risk of Administration.

That said the losses are of course continuing so another injection is going to be needed.

However, there are no charges, mortgages or liens over Rovers or VLL assets so there is no preferred creditor who can pull the plug. The security as far as I understand it is in India and is against land inherited by Balaji which is rapidly rising in notional value on the back of a Pune boom. The Indian banks cannot go through Balaji to get at Rovers although Balaji himself might at some point in the future want to do his own liquidation to mitigate his losses.

My personal view is that it would be very difficult for the Department of Industry not to appoint inspectors to investigate the maladministration of Rovers were we ever to go into Administration. Those inspectors would immediately be in receipt of dossiers etc etc .

So there is no way on earth that Venky's would ever contemplate letting Rovers go into administration.

The realistic prospect is more disinvestment and a slide down the divisions to where Accy Stanley now uncomfortably sit.

[Mike E]

That's the most positive thing you've posted in a fair while haha. Thanks for explaining it properly and not letting the board collapse into meltdown haha.

[perthblue02]

What would happen if the various governing bodies and their preferred joint media partners and their associated business partners have failed to cover arses properly and Jack Straw's prompts for a government investigation gathers momentum. Could the DOI force the club into administration?

[Happyforeverclapper]

Not so thick (Venkys, apart from football)after all , then again neither are the posters on here who doubted their financial ability skills :-)

[Blackburn Ender]

Philip, what about the usual creditors - HMRC, VAT, players wages, etc?

Could non-payment of these not trigger admnistration?

Also, how do we know Venky's are not borrowing against future guaranteed income, e.g. parachute payments?

If Venkys refuse to make another injection (surely money they will never get back) does this not also mean the receivers could be appointed?

[Stuart]

You say, no to administration but what happens if they DON'T inject more cash into VLL?

[K-Hod]

Surely the 'disinvestment and sliding down the leagues' would lead to financial oblivion though?

Considering the salaries of some of the players.....

[chaddyrovers]

been waiting for Philipl to start a topic like this. surprise it took this long.

the only thing I agree with Philipl is there is no way Venkys would let the club go into Admin so maybe selling it to the Battersby.Currie group or someone like Probiz buying us.

[OJRovers]

Crumb of comfort in a sadistic sort of way is the amount of money this is costing for Venkys. Yet they seem incapable of learning from mistakes and actually making anything that resembles a sensible decision.

[thenodrog]

been waiting for Philipl to start a topic like this. surprise it took this long.

the only thing I agree with Philipl is there is no way Venkys would let the club go into Admin so maybe selling it to the Battersby.Currie group or someone like Probiz buying us.

Surely any prospective new owner would want to buy the club from receivership in order to invalidate the stupid contracts held by numerous has beens and never will be's?

[T4E]

I can see the word Administration cropping up on a number of threads.

The reality TODAY is that following the £25m recapitalisation of Venky's London Ltd, we are not at risk of Administration.

No doubt we'll be in administration by this time next week then.

[darrenrover]

Surely any prospective new owner would want to buy the club from receivership in order to invalidate the stupid contracts held by numerous has beens and never will be's?

I would suspect a 10 point deduction at Christmas wouldn't have made much of a difference to next season's planning but it would certainly do now!

I don't know if the comment has any relevance but it certainly makes sense. The performances since (never mind the results) begs another question perhaps.....? Thoughts of Bolton, WBA, Stoke, Swansea and Tottenham certainly spring to mind.

[Stuart]

No doubt we'll be in administration by this time next week then.

Reading Fernhurst Rover's post earlier makes me think we wont be in administration. But only because Venkys might prefer to liquidate us rather than allow someone in to assess the books.

[T4E]

Reading Fernhurst Rover's post earlier makes me think we wont be in administration. But only because Venkys might prefer to liquidate us rather than allow someone in to assess the books.

Philip has a spectacular ability to assure that something won't happen 2 or 3 days before it does happen.

[Mercer]

Got a feeling that Philipl has got this one wrong.

[Stuart]

Got a feeling that Philipl has got this one wrong.

I've got a cheeky 33p on it at 33/1.

Sometimes the planets just align on these things.

Philip has a spectacular ability to assure that something won't happen 2 or 3 days before it does happen.

[BlueMonday]

Venkys injecting cash into Rovers to stave off Administration is akin to

a farmer vaccinating his live stock before sending them to the abattoir.

Rovers will NEVER be safe in these idiots hands.

[philipl]

The £25m is there.

Therefore there is no imminent risk of .administration.

I also fear there is almost zero chance of Venkys selling to anyone the fans would feel comfortable with.

Probiz are not exactly a bed of roses and a Shagnew buy out really would be terminal.

[chaddyrovers]

The £25m is there.

Therefore there is no imminent risk of .administration.

I also fear there is almost zero chance of Venkys selling to anyone the fans would feel comfortable with.

Probiz are not exactly a bed of roses and a Shagnew buy out really would be terminal.

why arent Probiz not exactly a bed of roses???

what dont you like about them?

[Stuart]

The £25m is there.

Therefore there is no imminent risk of .administration.

I also fear there is almost zero chance of Venkys selling to anyone the fans would feel comfortable with.

Probiz are not exactly a bed of roses and a Shagnew buy out really would be terminal.

How can the £25m be "there"? Aren't we losing £2m per month?

If the owner's money (cash or borrowed) is turned off - which fair play rules suggest it would have to be - then how do we continue to pay wages, buy out contracts and service debts?

[Bundesburn]

How can the £25m be "there"? Aren't we losing £2m per month?

If the owner's money (cash or borrowed) is turned off - which fair play rules suggest it would have to be - then how do we continue to pay wages, buy out contracts and service debts?

Don't be naïve, Stuart. How much did the Etihad stadium "sponsorship" amount to, in the end? £400m?

More than one way to skin a cat.

[perthblue02]

"and a Shagnew buy out really would be terminal."

FFS now that would just take the biscuit, no doubt with string pulling sleeping partners in Cumbernauld, Barnet and Zurich and Derek will still have never met anyone apparently.

Wouldn't be at all surprised by it though considering how much cash was made first time round basically getting the green light with the governing bodies happily turning a blind eye to certain peoples involvement

Perhaps this was the "plan" all along, get the idiots in pune to buy/front it and "advise" them to clear out the honest people in the club, run the playing staff into the ground with mysterious injuries and playing em out of position, get relegated, Have people whispering to turn the attention on Venky's , promote said person to the board , advise them to make decisions which would in future make it unlikely that they would want anybody doing due diligence should they need to sell, and then they are the only ones who take the club off their hands at a knockdown price?

Always remember the Kean quote " I think they can see what we are trying to do here" if there is a shagnew buy out , then yes Stevie think we can

[Stuart]

Don't be naïve, Stuart. How much did the Etihad stadium "sponsorship" amount to, in the end? £400m?

More than one way to skin a cat.

Ah right. They won't even sponsor our shirts, yet they are likely to unveil the "Venkydrome".

If they were giving us money we'd have seen some evidence of sponsorship, wouldn't we? We have had Princes Trust logos, Derian House teapots and stands named after fans favourite legends. These are icing on the cake gestures normally but in our case they seem to be the only gestures.

My naive money is going on us being in a whole pile of debt (on Venkys Corp balance sheet) from a loan against parachute payments.

[OJRovers]

why arent Probiz not exactly a bed of roses???

what dont you like about them?

They exploit the cutting edge of tax avoidance schemes of the sort that the government and HMRC are trying to shut down because they are harming the economy.

[chaddyrovers]

They exploit the cutting edge of tax avoidance schemes of the sort that the government and HMRC are trying to shut down because they are harming the economy.

where you got this from???

what harmed the economy was the Banks not being regulation correctly by the government at the time. now MP's are more bothered about party politics and blaming each other instead of coming together and sorted the mess out. people are bored of party polictics.

Tax Avoidance schemes have been going on for 20 to 30 years and people will always try to do it. The government are now trying to sort it but wont sort it out 100%