New Buyer Progress

[Geoff Parkstone]

1. They have stopped us going into immediate liquidation as we were clearly insolvent the minute Mel truned the tap off
2. They have kept the club running despite a dearth of cash without selling all of the playing assets
3. They have drummed up some interest in buying the club - bear in mind that is akin to getting interest in buying a knackered car with many many parts needing fixing and which is likely to fail its MOT and potentially get crushed - and neither one of them wants to blink first, as they are both playing the waiting game: as are the administrators

Its obviously hard to fathom potential buyers reasoning, but two now have pulled out that we know off citing delays - the first of which was beyond administrators control I imagine. The latest, Binnie, withdrawl has also been blamed on this but, reading between the lines, it looks like the administrators told them that their bid wasnt enough, so they pulled out. Problem with three bidders was, and with two will continue to be, the fact that they are looking to buy a wasting asset, and so will be wanting to pay less as time goes on.

Three months ago they may have also seen it as a wasting asset and realised that there was no point paying December's value for something that was declining.

The end result to my mind is that the value of the club has declined (in bid terms) to such a level that it will not meet the criteria for coming out of admin "cleanly" or necessarily enable an acceptable offer to be made to the creditors (mostly HMRC, MSD is fine as there is a charge over the ground - although what that is wirth in this meltdown scenario is questionable - and I imagine personal guarantees from MM). So regardless of will we get a 15 point deduction in League 1, we have to contend with the question of whether HMRC would even accept an offer now, at below 25%, in view of the precedent it sets. it could be that they prefer the option of a fire sale liquidation, rather than set a role model for future clubs to not pay their tax liability........ a tax liability that would help meet he contiuing emands for increased government spending on, amongst other things Refugee relief.

So in summary, in seeking to get the best deal the bidders may have killed the goose that lays the rather tarnished egg