Reply With QuoteActually, I think it was 900 million. 90 million would barely keep us in half time oranges for a season.Originally Posted by Thordardaughter
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Difference in football,some think you are going to spend a big lump of it on the club,plus it,s a Consortium, not one mans money.
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Actually, I think it was 900 million. 90 million would barely keep us in half time oranges for a season.
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I don't see how it can't effect Notts as the loans are from Paragon and therefore the administrator would require them paid back. We also have heard 'diddly squat?' as Alan would put it regarding the sale of Notts County to one of the two mysterious offers made... coincidence??
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No, the administrator cannot 'require' the loan to be re-paid. The terms of the contract dictate the repayment terms.
Of course the administrator has a duty to get as much money from the sale/disposal of Paragon as they can. No doubt they will be approaching Notts to cut some form of deal to raise money for Paragon's creditors - but they cannot force Hardy/Notts to repay early unless the contract allows them to do so.......
As I understand it the contract was 'secured'. As we don't own our ground I find it hard to understand how it was secured in the first place - what assets do we have to secure a loan of millions of pounds?? Maybe Mr Hardy personally secured the loan. I can't see much happening with the contract until Hardy gets a buyer who will take over the debts.
I am much more worried about the month to month cashflow - now that the money to prop us up has dried up - what happens this month end when all the wages are due and the club have insufficient funds to pay them?
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The loan wasn't secured between Paragon Leisure Group and Notts County FC, the loan between Paragon Interiors to Paragon Leisure Group probably was secured. Bearing in mind the leisure group includes the golf course and such, that was probably the asset used as security
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The Paragon Interiors "buyer" was Red 7 Property Limited. They've been considered dormant for years. Doesn't seem like they were a serious bidder. A quick look at their website and it looks pretty, but says very little about their contracts - some pretty pictures - that alone is weird for a small construction company.
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Makes you wonder why the Company that offered him £25m 2 years ago,didn't come back & buy Paragon for "diddly squat".They would have been making some saving on the £25m, or was AH talking to the Fairies again?
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Maybe the club itself (not the ground) was considered to have a value although I know that seems odd. Of course, it was never a genuine commercial loan despite the 4% interest rate, just a way of Hardy to arrange internal finance between his companies. I would have thought that if there are contracted payments over a set loan term then we would be OK, with no right of early repayment as long as we didn't default on the payments, but they must be pretty high, so that will happen at some point.
I don't like this idea of funding the actual purchase of Notts through a loan rather than just using a loan for running costs, it's exactly what the Glazers did at Man United, effectively buying the club with a mortgage, securing it on the club itself and lumbering it with debt from day one. But they have operational profits to fund he 'mortgage' and some left over for the Glazers to trouser, we do not.
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Maybe that was their acquisition vehicle. Paragon Int. would have fit with their Kubico
Group business, under common ownership. www.kubicogroup.com
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From what I can see in the accounts for the various companies the loan from Paragon Interiors to the football club was via the Leisure company (the golf course). That company has assets but also has a large amount of bank debt which is secured on those assets.
It looks like Hardy made those loans 10 years so there's no immediate way for the administrator/liquidator to recall them - unless the Golf Course company breaches the terms perhaps by not paying interest etc.
The problem though is whether this makes the sale of the club harder. I can't see anyone taking on the £7m or so of loans the club owes so some or all of them will need to be waived if shares in the club are to be sold. Would that waiver send the Golf Course into financial trouble as it could then not repay the administrator? If so there's no no easy way to waive them.
The other option would be the buyer to buy the assets of the club, including the players and their contracts, and transfer the football league golden share to a new entity (as we have done before). That would then leave a dormant company unable to repay its debts and start the same issues for the Golf Course company.
The administrator could also sell the loans for a few pence in the pound to somebody else who might then take a more aggressive approach in pursuing them.
There's no doubt in my mind that the loans to the club are practically worthless and the challenge is to find a buyer who will fund the future losses not one who will repay that debt. Ordinarily you'd think those loans would be somehow waived, the challenge now is how to do that legally.
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