Scary Article in the Mirror Newspaper

[slack_pie]

I read it as meaning that anything further which only came to light after completion would be down to AH, which seems a sensible plan to me.

I thought the point of the due diligence process was to make sure there are no skeletons in the closet.

And on and on it drags...

[SwalePie]

I thought the point of the due diligence process was to make sure there are no skeletons in the closet.

And on and on it drags...

There's always a risk of further unknown closets coming to light, never mind skellybobs.

[forwardmagpie]

There's always a risk of further unknown closets coming to light, never mind skellybobs.

Which is covered usually by retentions (if they are paying enough for retentions be of any use) mmmm

[Observerpie]

Has the milk bill been paid?

[bouncingoffthewalls]

Which is covered usually by retentions (if they are paying enough for retentions be of any use) mmmm

No point of retentions when the company they are going to will be liquidated in a few weeks time.

[LaxtonLad]

There is a process known as "disclosure" within commercial deals. Effectively the seller has to disclose all material facts including debts etc. Any that are not disclosed by error or concealment come back to bite the seller by a "warranties and indemnities" section of the Sale and Purchase agreement.

I think this "disclosure" process may be familiar to our Alan. It's what didn't happen when he bought the club from Ray Trew. Many times he told us about extra bills and debts he inherited and had to pay personally - unless these were passed on and paid by Paragon and called "loans"?

As you might guess, I haven't a clue how these things work.

[forwardmagpie]

No point of retentions when the company they are going to will be liquidated in a few weeks time.

Scratches head - retentions are monies you don't pay the seller until you are satisfied all warranties have been met.

[BigFatPie]

I thought the point of the due diligence process was to make sure there are no skeletons in the closet.

And on and on it drags...

Yes, exactly. Due diligence always seems like a big part of these deals, but both Hardy and Trew have complained about what they’ve found after the deal is done.

It’s good i suppose if the potential new owners have enough about them to stop it happening again.

[theory_extinct]

Sunderland had a similar situation last summer with debts that surfaced after the takeover. Ellis Short settled them. Sounds like the South Africans are doing things properly. Taking that as a positive. We may finally see Notts run like a proper business.

[Old_pie]

This doesn’t make any sense to me. They’re going to pay all the debts, but Hardy’s going to have to pay the debts they don’t pay??

Is the situation clear as to the demands of the Paragon Administrators over the loans made to Notts? Because if these might still be called upon then I wouldn't want the liability if I was a buyer, and it is/was AH's company so I'd say "Your problem mate or no deal".

I'd still wait to buy the company from the Adminstrators despite the points hike. Easier to deal with than AH for one.