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

[Bigdoggsteel]

Just now, preston blue said:

What is £9.3 million in the scheme of things.....chicken feed ;-

I'd say you would get a lot of chicken cocktail sausages out of it all the same 

[Dunnfc]

Just now, preston blue said:

What is £9.3 million in the scheme of things.....chicken feed ;-

Haha that's the price you pay for mismanaging a club, don't get me wrong it's bloody difficult to run rovers at a break even in championship, impossible in L1. But we know as fans what the issues has been from day one. The frickin indians.

[JHRover]

Whatever anyone says this certainly isn't 'business as usual' as someone has clearly tried to make the Telegraph believe/promote.

Appointing one set of accountants to review the operation is unlike Venkys. Appointing two of the biggest four firms in the world to come in simultaneously and both report at a massive cost tells us all that something is amiss.

These aren't the sort of people who are keen for teams of qualified experts to come in and sift through the nitty gritty of their business here. At the very least they have been pressured or forced into this by a 3rd party. Perhaps the Bank of India who have reached the end of their tether and want to know what's going on and if they are going to be able to get anything out of the club. I expect that the BOI would have regular dealings with KPMG and Deloitte and be able to parachute them in to report.

Venkys are the people who think having Mike Cheston as the only board member is acceptable, so I'm not going to believe that they've suddenly decided to take an interest in the club's operations and efficiency and have decided to pay massive money to get not one but two reports on it. 

I have a feeling that this summer is going to be the most eventful since Venkys darkened our doors. Probably not for the right reasons, as I expect the next 3 months are going to be dominated by off the field events rather than what should be the most important thing which is putting together a promotion chasing team, but it will be eventful. 

[AdamRochina]

It will be admin 100 percent 

[Roverall]

Just now, AdamRochina said:

It will be admin 100 percent 

Source or gut feeling?

[J*B]

Sounds like a ticking time bomb. The way I am told is...

The accountants are insolvency teams sent over by the Bank of India to assess the finances. They'll come back with a figure each which is presented to the bank - that figure will be requested to be invested from Venky's to ensure the next 12 months. If the figure isn't invested, the bank will call in their loans. 

DunnFC has suggested this figure is approx 8-10m. The players aren't worth that... so it'll be a combination of player sales and sales of other assets. There's lots of signs for land for sale as you drive into Brockhall, so that's one market. I believe the BOU loans are secured against land / assets in India, although I'd need that confirming. Will Desai allow Balajis football club to take away wealth / assets in India? We will see. I've always maintained hitting them in India will be a big milestone. 

[Tony Rover]

Just now, JHRover said:

Whatever anyone says this certainly isn't 'business as usual' as someone has clearly tried to make the Telegraph believe/promote.

Appointing one set of accountants to review the operation is unlike Venkys. Appointing two of the biggest four firms in the world to come in simultaneously and both report at a massive cost tells us all that something is amiss.

These aren't the sort of people who are keen for teams of qualified experts to come in and sift through the nitty gritty of their business here. At the very least they have been pressured or forced into this by a 3rd party. Perhaps the Bank of India who have reached the end of their tether and want to know what's going on and if they are going to be able to get anything out of the club. I expect that the BOI would have regular dealings with KPMG and Deloitte and be able to parachute them in to report.

Venkys are the people who think having Mike Cheston as the only board member is acceptable, so I'm not going to believe that they've suddenly decided to take an interest in the club's operations and efficiency and have decided to pay massive money to get not one but two reports on it. 

I have a feeling that this summer is going to be the most eventful since Venkys darkened our doors. Probably not for the right reasons, as I expect the next 3 months are going to be dominated by off the field events rather than what should be the most important thing which is putting together a promotion chasing team, but it will be eventful. 

My thoughts exactly. There is just too much that doesn't add up. Hopefully the rug is being pulled out from under Venkys and it being the start of finally seeing the back of them. I do believe that it's going to be another painful season though.

[sympatheticclaret]

Just now, AdamRochina said:

It will be admin 100 percent 

The worst possible scenario would be a " pre-pack administration "...

Basically, it's a device that can legally be used to fold the old Company, and start again, usually with debts wiped clean but with the same owners and management team. I've no idea if that this is what they're planning, and it would mean the Venky's debt being largely written off. The Football authorities may not put up with it, but that's your " nightmare scenario ", administration, -15 points, and still having Venkys as owners....

http://www.corporaterecoveryhelp.co.uk/pre-pack-administration/rules-requirements-and-advantages-of-pre-pack-administration/

Let's hope it all plays out quickly, and you can get your Club back in proper hands...good luck !!

 

[chaddyrovers]

56 minutes ago, RoversClitheroe said:

From asking around. You'd only bring 2 companies in alongside the current company you already employ to put the company into administration or to sell.

I think they are looking to sell the club. Dont see them paying 800k to put the club in administration. They dont get anything back. Debt owned to VLL. 

Maybe they find a potential buyer..

Or bringing in these 2 accountants firms to put the club books in order for a sale?

[J*B]

Just now, chaddyrovers said:

I think they are looking to sell the club. Dont see them paying 800k to put the club in administration. They dont get anything back. Debt owned to VLL. 

Maybe they find a potential buyer..

Or bringing in these 2 accountants firms to put the club books in order for a sale?

Venkys won't be paying the 800k. They didn't request the accountants. 

[Sparks Rover]

They might be doing due diligence for the Sultan of Brunei.......Steve Kean rides again.

[Dunnfc]

Just now, sympatheticclaret said:

The worst possible scenario would be a " pre-pack administration "...

Basically, it's a device that can legally be used to fold the old Company, and start again, usually with debts wiped clean but with the same owners and management team. I've no idea if that this is what they're planning, and it would mean the Venky's debt being largely written off. The Football authorities may not put up with it, but that's your " nightmare scenario ", administration, -15 points, and still having Venkys as owners....

http://www.corporaterecoveryhelp.co.uk/pre-pack-administration/rules-requirements-and-advantages-of-pre-pack-administration/

Let's hope it all plays out quickly, and you can get your Club back in proper hands...good luck !!

 

Pre Packs are not allowed in football to be fair, the ownership rules state exit via CVA only. This is done to comply with the parri passu approach and football creditors rule.

Also with rovers having a holding company VLL and the club, both would liekly go into admin and the same directors and connections cannot have more than two administrations in football.

But we all know you can drive a bus through those rules.

[chaddyrovers]

Just now, J*B said:

Venkys won't be paying the 800k. They didn't request the accountants. 

Some people have said they have requested these to come in..

U said different. 

 

[gumboots]

Sky sports news finally got round to mentioning it

[tomphil]

Well if the tantric controller has let it be put out there something is going on.

[PAFELL]

I believe Venkys are looking to off load - but are covering their own arse first. Hence reason for two accountant going to ewood.

But pride, won't allow local buy out - but may have to change their minds..

[Dunnfc]

Just now, PAFELL said:

I believe Venkys are looking to off load - but are covering their own arse first. Hence reason for two accountant going to ewood.

But pride, won't allow local buy out - but may have to change their minds..

More than two accountants at Ewood place is swarming in them

[davulsukur]

I really don't know what to make of all this, largely due to my lack of knowledge on this kind of thing.

I am desperately hoping it's that Venkys are finally clucking off but history tells us that when you finally get a ray of hope, Venkys turn around and kick you in the balls once again.

[jodrell]

i would like to say a big thank you to the FA for listening to the fans concerns about the slum dogs. I hope they come out of this just as badly as them.

 

[blueboy3333]

6 hours ago, J*B said:

Venkys won't be paying the 800k. They didn't request the accountants. 

Who did?

[Lancaster Rover]

BOI allegedly 

[blueboy3333]

Is the BOI state owned in any way? Added to the tax raids in India it might suggest a crackdown by the government.

It's the hope that kills you.

 

[1864roverite]

I am not an accountant nor do I have any in depth knowledge of what either KPMNG or Deloittes are doing or who has called them in.

Aren't Delloites a firm who broker club sales? I am sure they have been involved with other club take overs in the past.

Administration makes no sense of Venkys whatsoever nor does a bill for a million for the accountants.

I see them walking the walk of shame, heads bowed and embarrassed to hell.

They are crying out for help and appear to be getting it. That's my viewpoint.

 

VENKYSOUT

 

[AAK]

Has nobody watches the NYC Rovers video? Chap said he's spoken with Alan Myers, who said he'd contacted the club and said he would come back on a lesser salary but hasn't even had a reply.

Myers said it's interesting two accountancy firms have come in as that's usually due diligence for a takeover. Said that fits in with what he's been told, a Chinese consortium have made a bid for the club.

 

[Manchester Blue]

Just to clarify I have no inside info or ITK however couple of points worth clarifying here.  Both KPMG & Deloittes carry out a multitude of functions, so all saying it they specialise in this or that is pointless.  I've worked at other firms struggling financially who have brought in a combination of EY, PWC, Deloiites or KPMG to pay them a fortune to advise them of the bleeding obvious.  However I've also been where 2 of the big 4 have come in for either a fixed fee and/or even for nothing with the intention of a quick review to try and gain a bigger piece of work around restructuring etc.

The fact that all of them can specialise in Admin, sales or any other element is not massively relevant given how many possible outcomes.