[Archived] 40 Venky's Premises raided by Indian Tax Officials

[blueboy3333]

There's a lot of emotive language in there with very little substance.

[OJRovers]

Just now, philipl said:

I don't know but this morning I was extremely confident the chances of administration were zero.

Writing this right now I am enormously fearful. I see liquidation or administration for Rovers as the logical conclusion to what has been happening at Ewood since Thursday (BEFORE the tax raid)

The tax raid can only complicate matters.

In India it could be the hubris of the Raos has gone too far and they are in serious difficulty. At best they emerge significantly poorer and somehow avoid criminal charges etc (Mrs D has a criminal charge because of Lavasa I believe) turning into convictions. At worst, perhaps Parmalat.

One thing looks probable, the drip feed of cash to meet Rovers' operational short falls from Pune is in now enormous doubt. Which flips back to why I am now enormously fearful.

What are the options for shirt term cash, I think we're running out:

- overdraft: maxed out 

- loans from FA: done

- factor any future tv and transfer income: done

- factor season tickets: done

Brockhall and Ewood could be mortgaged, but that would take months not week's.

Equally, no one is going to take Graham, Evans off our hands this early in the summer.

I'm struggling to see where the cash is going to come from.

[blueboy3333]

Just now, OJRovers said:

.

I'm struggling to see where the cash is going to come from.

I think we're banking on the sell-on fees for the sales of Cairney, King and Judge. Cheston is trying to drum up interest by phoning Alan Nixon using a voice distorter and pretending to be their agent.

[broadsword]

I guess the sundry budget stretches to a clothes peg on the nose

[philipl]

13 minutes ago, blueboy3333 said:

I think we're banking on the sell-on fees for the sales of Cairney, King and Judge. Cheston is trying to drum up interest by phoning Alan Nixon using a voice distorter and pretending to be their agent.

There is no plan.

And yes I wish there were very little substance.

Situation has changed dramatically in the last two working days. 

[blueboy3333]

Just now, philipl said:

There is no plan.

And yes I wish there were very little substance.

Situation has changed dramatically in the last two working days. 

How, apart from what we know already? Spill Phil...

[philipl]

A team of KPMG accountants took over at Ewood today is already public knowledge- been posted on here since Thursday evening.

This happened independently of the tax raid which started at Venky's Friday morning catching them completely by surprise and has continued today and is expected to last most of this week. 

I have posted elsewhere- this morning I thought administration a zero chance. Now I am struggling to see a fate other than administration or total liquidation given the size of the KPMG team and the specialists within it. 

 

[Dunnfc]

I think i see where PhillipL is coming from to be honest. 

Two accountants from KPMG? Ok... Not going to happen unless it's two senior partners, why send to two accountants? You wouldn't unless something big is developing quickly. 

But why? I posted the fixed charges held against VHPL (Again Below), i firmly believe these have been borrowed when you look at the TXN dates of them to fund Rovers. With us dropping into the third tier and losing 35% at least of income from last year for the upcoming season, the bank will be wondering how the football club will pay it's loans interest and debts. We have an unsecured overdraft in which if you go to the accounts possibly page 23 it sets out they can place a fixed charge at any time on the club but what happens if VHPL don't put money in? The club scrapes short term loans together to continue to run until no credible body will lend anymore, remember it only takes an aged invoice to trigger a winding up notice or debt 7 day action note and we've heard the supplier rumours haven't we? Are the bank going to loose 15 million given only the loans are PCG'd? No 

So get a team at Ewood before the winding up notices begin access the situation and look to plunge it into admin after you've assessed what value you can obtain from it's assets, that way you can place the fixed charge on it before the administration and re-coup your overdraft value or near enough through the CVA proposal. I think we've not appointed two accountants but 2 ISP's. Remember the post i made last week in particular the parri passu football rules and scenerio A? 

 

[tomphil]

There'll be a few in and around Pune who think Barry Bling is long overdue a stay at the Mumbai Hilton, not the one his mate Paris owns either. I wonder if Akon would and Lennox would visit ?

Maybe Jerome and Stevie would take him in a 'cake'  

[Stuart]

Just now, philipl said:

A team of KPMG accountants took over at Ewood today is already public knowledge- been posted on here since Thursday evening.

This happened independently of the tax raid which started at Venky's Friday morning catching them completely by surprise and has continued today and is expected to last most of this week. 

I have posted elsewhere- this morning I thought administration a zero chance. Now I am struggling to see a fate other than administration or total liquidation given the size of the KPMG team and the specialists within it. 

According to this KPMG left Rovers two years ago with Cheston re-appointing PM+M.

http://www.lancashiretelegraph.co.uk/sport/13520205.display/

Wouldn't PM+M be the ones to audit the club?

And still, nothing reported in the papers. 

[Dunnfc]

Just now, Stuart said:

According to this KPMG left Rovers two years ago with Cheston re-appointing PM+M.

http://www.lancashiretelegraph.co.uk/sport/13520205.display/

Wouldn't PM+M be the ones to audit the club?

And still, nothing reported in the papers. 

Yep they would be ordinarily if it was Venky's choice........................ 

[Irishrover213]

Just now, philipl said:

A team of KPMG accountants took over at Ewood today is already public knowledge- been posted on here since Thursday evening.

This happened independently of the tax raid which started at Venky's Friday morning catching them completely by surprise and has continued today and is expected to last most of this week. 

I have posted elsewhere- this morning I thought administration a zero chance. Now I am struggling to see a fate other than administration or total liquidation given the size of the KPMG team and the specialists within it. 

 

Thanks Phil I don't see anything good coming out of this. 

This will be a total cost cutting exercise. Even when they have completed this and formulated answers to venkys questions 1 is there anything left to sell and how much will it cost to run the club next yr. 

By the beginning of June we could be in serious sh1t more than we are in already 

[bob fleming]

Sorry guys, but how do we know it's KPMG?

[Stuart]

Just now, bob fleming said:

Sorry guys, but how do we know it's KPMG?

Phil said.

Reckons it was posted on here last week but I don't remember seeing them named.

[Dunnfc]

Just now, bob fleming said:

Sorry guys, but how do we know it's KPMG?

Tbf i think it was Alan Nixon who confirmed it 

[philipl]

Just now, bob fleming said:

Sorry guys, but how do we know it's KPMG?

Nixon said so

... and this time he is right

And no this is not an audit.

[Dunnfc]

Just now, Stuart said:

Phil said.

Reckons it was posted on here last week but I don't remember seeing them named.

I think someone mentioned consultants due to staff redundancies

[philipl]

Just now, Dunnfc said:

I think i see where PhillipL is coming from to be honest. 

Two accountants from KPMG? Ok... Not going to happen unless it's two senior partners, why send to two accountants? You wouldn't unless something big is developing quickly. 

But why? I posted the fixed charges held against VHPL (Again Below), i firmly believe these have been borrowed when you look at the TXN dates of them to fund Rovers. With us dropping into the third tier and losing 35% at least of income from last year for the upcoming season, the bank will be wondering how the football club will pay it's loans interest and debts. We have an unsecured overdraft in which if you go to the accounts possibly page 23 it sets out they can place a fixed charge at any time on the club but what happens if VHPL don't put money in? The club scrapes short term loans together to continue to run until no credible body will lend anymore, remember it only takes an aged invoice to trigger a winding up notice or debt 7 day action note and we've heard the supplier rumours haven't we? Are the bank going to loose 15 million given only the loans are PCG'd? No 

So get a team at Ewood before the winding up notices begin access the situation and look to plunge it into admin after you've assessed what value you can obtain from it's assets, that way you can place the fixed charge on it before the administration and re-coup your overdraft value or near enough through the CVA proposal. I think we've not appointed two accountants but 2 ISP's. Remember the post i made last week in particular the parri passu football rules and scenerio A? 

 

 

[RV Blue]

Just now, philipl said:

Nixon said so

... and this time he is right

And no this is not an audit.

Nixon said it was KPMG? I don't think he did. What has happened since this morning that had made you think admin is inevitable? You were saying yesterday that even if Venky's put no money in we'd survive until next season, what has changed?

[tomphil]

It's being covered up as cost saving excercise probably but I'd love to know just who has sent these lot in, The BOI surely.

 

[philipl]

Just now, RV Blue said:

Nixon said it was KPMG? I don't think he did. What has happened since this morning that had made you think admin is inevitable? You were saying yesterday that even if Venky's put no money in we'd survive until next season, what has changed?

No I didn't say that.

I said administration would not happen because there are too many skeletons in the cupboard for the club to be safely handed over to an administrator and that Venky's are determined not to sell.

Nixon said KPMG and Deloittes in his Sunday Sun piece I believe. Well KPMG turned up this morning. What has changed is:

1) the people who will sort out skeletons in cupboards one way or another are hard at work at Ewood

2) today it became clear that since Friday's taxman knock on the door, it could well be Venky's are going to be in no state to continue the drip feeding of funds of last resort. The most recent Indian cash infusion was made in the last week of April. 

 

[J*B]

I'll have a chaddy on absolutely nothing comes of this. No justification other than I've seen 6 years of this @#/? and they keep on keeping on. 

[Dunnfc]

Just now, J*B said:

I'll have a chaddy on absolutely nothing comes of this. No justification other than I've seen 6 years of this @#/? and they keep on keeping on. 

Balaji's bad day set to continue

 

[TBTF]

Just now, philipl said:

No I didn't say that.

I said administration would not happen because there are too many skeletons in the cupboard for the club to be safely handed over to an administrator and that Venky's are determined not to sell.

Nixon said KPMG and Deloittes in his Sunday Sun piece I believe. Well KPMG turned up this morning. What has changed is:

1) the people who will sort out skeletons in cupboards one way or another are hard at work at Ewood

2) today it became clear that since Friday's taxman knock on the door, it could well be Venky's are going to be in no state to continue the drip feeding of funds of last resort. The most recent Indian cash infusion was made in the last week of April. 

 

Philip

This sounds very very serious indeed. If all this is as reported then we don't look like we will see the new season in.

So why do they refuse to sell it or even talk to anyone? Surely  even if they don't get much for it they would look to cut their losses and not have to fund it any more??

I bet they are eating themselves for not talking to the Ian;s last year when they had a chance.

But I just don't get why they seem to prefer admin to trying to do a deal. Better brains than mine on here will no doubt have an answer but in my simple head I just don't understand it.

 

[OJRovers]

I wonder if they are doing an interim "audited" set of accounts either for potential buyers or as assurance to meet credit hurdles to take out more of these high interest loans.