Hicks Speaks - Sun 26.

[El Jefecito]

You're getting desperate now, do you seriously think that after 8 weeks of intense negotiations that risk wouldn't have been factored into future financial models. no bank would have loaned that kind of money without cast-iron guarantees and very detailed modelling of cash flow.

but like you said, you're a self-confessed WUM. No point in any of us wasting our time on you. :whatever:

The risk was considered, that's why they had to stump up the 55m :duh:

[Red_Al_77]

They didn't stump up anything. They borrowed against their assets.

[El Jefecito]

With all due respect, that is nonsense.

They will probably only ever have to stump up that cash if the club either does not have the assets (liquid, current or fixed) to cover it.

BTW Alpha, thanks for clarifying that mate

How do you know this? Are you just making this all up as you go along. Who is your source for the detailed information you have about the loan arrangements?

[El Jefecito]

They didn't stump up anything. They borrowed against their assets.

Secured against their assets. They made a personal 55m commitment.

[Red_Al_77]

Secured against their assets. They made a personal 55m commitment.

So they didn't stump up any cash did they?

[Dhav]

How do you know this? Are you just making this all up as you go along. Who is your source for the detailed information you have about the loan arrangements?

Come on. Up until now they haven't stumped up a penny of their own cash. What makes you think at some point in the future if the club can't make the repayments they'd rather use personal resources to cover the debts as opposed to club assets?

[El Jefecito]

Come on. Up until now they haven't stumped up a penny of their own cash. What makes you think at some point in the future if the club can't make the repayments they'd rather use personal resources to cover the debts as opposed to club assets?

Because that it what it said in the legally binding loan agreement.

[El Jefecito]

So they didn't stump up any cash did they?

Whether it is cash or assets is irrelevant, it's a 55m commitment. They stand to lose that much if they screw up. The only difference is timing.

[Rashid]

They gave guarantees for £55M from their own assets if things go tits up - these were in the form of credit notes. When the strategy is to sell this is the smallest riskanyone can take.

[El Jefecito]

They gave guarantees for £55M from their own assets if things go tits up - these were in the form of credit notes. When the strategy is to sell this is the smallest riskanyone can take.

Do they have skin in the game?

Are the credit notes secured on their assets?

[Red_Al_77]

Whether it is cash or assets is irrelevant, it's a 55m commitment. They stand to lose that much if they screw up. The only difference is timing.

Of course its relevant. If they put in their own cash then the loan payments tied to the club would be 55m less. As it is they could only secure a certain amount against the club and the rest against their assets....but the loan payments will be met from the club operating profit.

[Dhav]

How do you know this? Are you just making this all up as you go along. Who is your source for the detailed information you have about the loan arrangements?

Because that it what it said in the legally binding loan agreement.

So I take it you now have a source for the detailed information you have about the loan arrangements. The personal guarantee will only be called on if the company defaults on repayments. Why would the company default when it has assets that can be sold to make the repayments?

[ronniedrew]

here we go again

lets face it, none of us know jack

[El Jefecito]

Of course its relevant. If they put in their own cash then the loan payments tied to the club would be 55m less. As it is they could only secure a certain amount against the club and the rest against their assets....but the loan payments will be met from the club operating profit.

That's what you say. Who told you that DEFINITIVELY (seems to be the acceptable burden of evidence today).

[El Jefecito]

here we go again

lets face it, none of us know jack

EXACTLY saw through my scheme