by tmesis »
31 Oct 2024 21:48
Given that Dai wouldn't do it, nor would the directors, that only really leaves a successful winding up order as the only way it could happen.
We aren't going to get wound up while we still have some money to pay the bills, so that really seems to suggest that it would only happen if we'd spent the season ticket money and the Olise money, and consequently would be lucky to finish the season.
An administrator would then come in and slash costs to the bone while looking for a buyer. It would not be pretty.
The wonders of ChatGPT also suggest that the stadium situation doesn't get easily resolved by going into administration
In the UK, administrators can sell property used as collateral for a secured loan, but specific rules and considerations must be met:
Consent of the Secured Creditor: The administrator needs to obtain the consent of the secured creditor (e.g., a bank or financial institution holding the loan) before selling the property. This is because the property serves as collateral for the secured loan, and the creditor has legal rights over it.
Court Approval: In some cases, if the secured creditor does not consent to the sale, the administrator can apply to the court for permission to sell the property. The court must be satisfied that the sale is in the best interest of the creditors and the overall administration process.
Purpose of Administration: The primary goal of an administration is to rescue the company, achieve a better result for the creditors than would be likely if the company were wound up (i.e., liquidated), or to realize property to make distributions to one or more secured or preferential creditors. The sale of secured assets can be part of these strategies if it helps to achieve these objectives.
Payment to the Secured Creditor: If the property is sold, the secured creditor's claim must be settled. This means that proceeds from the sale would first go to satisfy the debt owed to the secured creditor before any remaining funds could be used for other purposes or distributed to other creditors.
In other words we could go into administration without being able to sell the club as a whole, in which case the clubs becomes much less valuable or viable.