CONFRIMED: Takeover collapsed; Back to square one

[WestYorksRoyal]

You wonder how much Dai really wants to sell or whether Chiron were patsy's so pay the bills and keep the lights on. Obviously short termism but when has Dai been sensible?

Now we have season ticket revenue, the summer solidarity payments from the PL and a potential Olise windfall incoming. Dai may be thinking he's got loads of time to spin this out.

[Snowflake Royal]

You wonder how much Dai really wants to sell or whether Chiron were patsy's so pay the bills and keep the lights on. Obviously short termism but when has Dai been sensible?

Now we have season ticket revenue, the summer solidarity payments from the PL and a potential Olise windfall incoming. Dai may be thinking he's got loads of time to spin this out.

The pcunt has probably deliberately wound down exclusivity so he can try to play other buyers off against Chiron to up their price.

And it won't work, because he's the only fukwit involved.

We're done.

[morganb]

Statement in full -

Reading Football Club would like to provide the following update regarding the club’s sale process.

On 26th March the Club announced it had entered into a letter of intent with a potential purchaser. This exclusivity period has now expired but dialogue remains open with this group, as well as new bidders, with the aim of completing a sale at the earliest opportunity.

Mr Dai remains committed to the complete sale of Reading Football Club and its associated assets. The Club appreciates the patience from our staff and supporters through this protracted process, and aim to communicate substantive developments when appropriate.

James "glass half full" Earnshaw says -

Is worth noting that it took the likes of Derby, Coventry and Southend multiple spells of exclusivity to find a deal (and Southend still rumbles on). Frustrating and potentially damaging but not wholly unusual

[WestYorksRoyal]

Maybe it ends with Chiron getting it on the cheap due to their charges over the club. It's just happened with a lender at Inter Milan, and could well happen at Everton. I'm not expecting Dai to pay them back.

But obviously would very stressful to get to that point.

[andrew1957]

Cannot say this news comes as a surprise. It is hard to feel any confidence at this point that the club has a future and one does wonder if the owner would rather the club Dai than be sold. He has a track record after all.

[Orion1871]

The cretin is going to make the sale as difficult as possible. That's if he actually has any intention of selling at all.

[Pepe the Horseman]

Maybe it ends with Chiron getting it on the cheap due to their charges over the club. It's just happened with a lender at Inter Milan, and could well happen at Everton. I'm not expecting Dai to pay them back.

But obviously would very stressful to get to that point.

Would we have to go into administration for this to happen?

[Sutekh]

The cretin is going to make the sale as difficult as possible. That's if he actually has any intention of selling at all.

He is clueless and doesn't know what he is doing.

[The Royal Forester]

No new owners, Dai stays put with controlling shares, so we are up the creek. With or without a paddle, the club folds.
I do hope I am wrong though.
My post on the New Owners Prediction League

Wil I be the winner? I hope not.

[WestYorksRoyal]

Maybe it ends with Chiron getting it on the cheap due to their charges over the club. It's just happened with a lender at Inter Milan, and could well happen at Everton. I'm not expecting Dai to pay them back.

But obviously would very stressful to get to that point.

Would we have to go into administration for this to happen?

I don't think so. Club defaults on the loan, Chiron are entitled to seize the shares.

[The Royal Forester]

Maybe it ends with Chiron getting it on the cheap due to their charges over the club. It's just happened with a lender at Inter Milan, and could well happen at Everton. I'm not expecting Dai to pay them back.

But obviously would very stressful to get to that point.

Would we have to go into administration for this to happen?

I don't think so. Club defaults on the loan, Chiron are entitled to seize the shares.

What percentage of the club shares are still owned by Dai? Surely he wouldn't have put a controlling amount of shares at risk, would he?
What would happen if Dai liquidated the club, or can't he do that now?

[Clyde1998]

Would we have to go into administration for this to happen?

I don't think so. Club defaults on the loan, Chiron are entitled to seize the shares.

What percentage of the club shares are still owned by Dai? Surely he wouldn't have put a controlling amount of shares at risk, would he?
What would happen if Dai liquidated the club, or can't he do that now?

I believe it was reported Narin Niruttinanon (one of the Thais) still holds around 5% (I can't find the source). Dai (and maybe his sister) would own the rest.

[Stranded]

Well at least we know where we are.

At least the Euros start next Friday so can simply ignore the slow motion car crash that is our club.

Wonder how much longer Selles will be prepared to hang on as every day, let alone week without a new owner and the level of security that should bring will undoubtedly see us miss targets and see us looking at an ever diminishing pool of free agents.

[Armadillo Roadkill]

This is obviously very bad news.

I wonder if any of the work undertaken as due diligence could be used by another prospective buyer, or whether they would have to go right back to the beginning? Because if it can', any takeover by a new party will not happen before the season starts.

So we'd be left with a DoF banned from football, a manager with a greatly enhanced reputation open to offers, a club in chaos, and with a creditor other than the current owner, who might well want to call this debts in, triggering administration.

Hopefully one of you wonderful people can tell me I'm wrong in this pessimism.

[blythspartan]

oxf*rd me, I am going to take a positive spin on the latest takeover news. Basically, exclusivity has ended with Chiron and we have other parties along with Chiron interested in buying us and one of them could still compete the takeover without needing to have an exclusivity period.

We still have virtually the same squad of players that had playoff form after November last year. Also, we may get a windfall once Palace sell Olise and we have other money coming into the club. Plus, our wage bill has now been significantly reduced.

We are so much better off than we were this time last year so what is there to be worried about? I think being in New Plymouth has affected my usual bed wetting posts. Although I have to say that the bed wetters have been proved right. Anyway, when we’re liquidated in August you can throw this post back in my face. I hope Orion is coping well without my updates about what someone said on Twitter.

[Silver Fox]

I guess people just read what they want to read but I see that statement and see it as the process is ongoing. there's nothing to celebrate but equally no reason to jump off a cliff

[WestYorksRoyal]

I guess people just read what they want to read but I see that statement and see it as the process is ongoing. there's nothing to celebrate but equally no reason to jump off a cliff

I agree with this to an extent, but the fact this is still ongoing is damaging in the short term. It makes it harder to retain Selles and keep our team together. It may mean players are sold to tide Dai over a few more months so he doesn't default on Chiron's loan and havd to hand his shares over.

I don't agree with the existential stuff that we'll be liquidated by August, but I really enjoyed watching this team develop and was looking forward to seeing what they could achieve with stability and the right additions. That feels unlikely now, even if in the bigger picture it doesn't mean the end for us (yet).

[RoyalBlue]

This is obviously very bad news.

I wonder if any of the work undertaken as due diligence could be used by another prospective buyer, or whether they would have to go right back to the beginning? Because if it can', any takeover by a new party will not happen before the season starts.

If it's anything like the various company sales that I've been involved in there will be a data room (virtual, rather than physical nowadays). This will hold all of the key information in detail- financials, employees, assets, liabilities etc. and will be added to as any interested party works through their due diligence and raise additional questions/requests for data. Once compiled, it is obviously also available to provide to any subsequent interested parties. That being the case, I would expect the process to be quicker with any new/additional parties provided, of course, that the likes of Dai, Pang and Howe are acting in good faith.

[From Despair To Where?]

I just can't get stressed or worked up about it any more.

What will be, will be.

[Snowflake Royal]

I guess people just read what they want to read but I see that statement and see it as the process is ongoing. there's nothing to celebrate but equally no reason to jump off a cliff

If the process was progressing well, there would be no need to be talking to anyone but Chiron.

You aren't going to get a deal over the line talking to multiple parties at once without a period of exclusive negotiations first.

The fact exclusivity with chiron has ended means we're on a set back of about 2 months progress. And we have very little time left.

All info suggests we've only been paying the bills by loans from Chiron. If they're no longer in exclusivity, them buying us is less likely, which now means any alternate buyer needs to cover paying them back too. And we're relying on money from somewhere else to pay the bills. And we saw how that went last summer. ST money didn't stretch very far then.

It's not catastrophic news in that there are still negotiations ongoing. But it is very clearly bad news and a set back.