More Aspects of the Lapping Deal not Adding Up

[THE_NORTHERNSOUL]

Both Pattison and Nixon had 25% of the Holding Co

So how come JN ends up with 8% yet SP has only 1% after dilution in the new holding company.

There is talk of JN putting 25k in but as i understand it from the Trust info hes actually just writing off a 25k loan from 5 years ago.

And even if it was down to a 25k investment surely SP would have put 25k in as that 25k would then be worth in shares 8 times what 25k invested directly with Lapping would be worth and he would then be able to sell at a large profit.

So looks like good old Steves been well and truly stuffed.

[moorlad]

Barry, I believe I did explain some of this a while ago. Those loans are not being written off they are being (on paper) repaid and the cash is used to buy some of the reissued shares. So Pattison had much lower loans to the club than Nixon did. Effectively it is a balance sheet adjustment the debit entry to the director's loan account and the credit to share capital.

I haven't seen the agreement at all, but have assumed that it means none of the current owners will be investing anything more, the club will issue them shares equal to the value of their outstanding loans, and the remainder of the newly issued shares are to be paid for by Lapping and his associates. That will be the only cash investment into the club, and I'm further assuming that it won't be forthcoming in a lump sum.

In any event it won't go on player recruitment anyway.

[THE_NORTHERNSOUL]

Moorlad

I can see what your saying but how do you know that is the case i saw nothing to that effect in the info that went to the trust.

So are you saying that AJ and JN and the Trust will have voted for it as they come out of it well and SP will have voted against as he doesnt and therefore has in effect been stitched up.

But even if that were true how does Nixons 25k get him 8% surely SP would in that case to get 8% have just put 25k in as that 25l would be worth many times that compared to just giving it to lapping where it would get you a lot less percentage.

[moorlad]

To be quite honest mate, it is mainly conjecture on my part. However I have done similar things with football clubs in the past (Grantham Town, although smaller was very similar to this in the '90s). Jenkins and Nixon had both loaned the club considerably more than Pattison in the past, I am assuming that they had larger loans still outstanding. I also believe, but again I'm not certain, that Nixon's shareholding to start with was higher than Steve's as well.

I believe this has been a rights issue of shares, so existing shareholders are offered an amount commensurate with the shares they own already. They don't have to take them up (ie the Trust), or in the case of (it would seem) Nixon they pay for it using the amount (or part of that amount) the company owes them.

I'm not certain Barry, this is just my take on what I have seen.

[THE_NORTHERNSOUL]

Either i.ve missed somthing or youre doing a lot of adding up i thought it was well documented at the start that AJ JN SP and DA all had 25% share of the holding company and the only change to that has been that AJ took on DA.s shares when he left.

And i.m pretty sure that the only money JN has put in is the 25k i mentioned.

[Piglet_Phoenix]

I reckon Lapping's scheme adds up perfectly.

He's clearly involved principally for personal profit.

He's been brought in by the current owners to consolidate their positions and to find the investment that will facilitate Blue Yonder.

All perfectly legal and above board, all blatantly obvious.

The development of the Brunton Park site has been the principle driver behind every decision made by the club since John Ward was manager, the Lapping scheme is merely the continuation of that agenda.

- The trust have lost their veto (and the ability to block a move).

- A major property developer was revealed as an investor AFTER this.

- The "investment" will not be spent on the football side of the club

- Jenkins remains the majority shareholder, Nixon retains an influential directorship.

It couldn't be any more obvious if you put it up in flashing neon lights.

I believe Lapping's already spoken about his dreams of a flat pack 10,000 capacity ground costing a (massively exaggerated) s

[dalmationblue]

Lapping ont tuther board says he's backing the tories and we've all been around long enough to know what the Tories policy is, The Rich get richer and the poor, Well I'll let you guys finish it off...

[moorlad]

Either i.ve missed somthing or youre doing a lot of adding up i thought it was well documented at the start that AJ JN SP and DA all had 25% share of the holding company and the only change to that has been that AJ took on DA.s shares when he left.

And i.m pretty sure that the only money JN has put in is the 25k i mentioned.

I think all three of them had more than that loaned to the club the last accounts I saw mate. I believe Jenkins had the largest loan outstanding. Perhaps there will still be some debt to some of the directors after the dust settles then.

As I said a lot of it is conjecture on my part, but I can't see how else it can be done to be honest.

[griff]

[quote="Piglet_Phoenix"]I reckon Lapping's scheme adds up perfectly.

He's clearly involved principally for personal profit.

He's been brought in by the current owners to consolidate their positions and to find the investment that will facilitate Blue Yonder.

All perfectly legal and above board, all blatantly obvious.

The development of the Brunton Park site has been the principle driver behind every decision made by the club since John Ward was manager, the Lapping scheme is merely the continuation of that agenda.

- The trust have lost their veto (and the ability to block a move).

- A major property developer was revealed as an investor AFTER this.

- The "investment" will not be spent on the football side of the club

- Jenkins remains the majority shareholder, Nixon retains an influential directorship.

It couldn't be any more obvious if you put it up in flashing neon lights.

I believe Lapping's already spoken about his dreams of a flat pack 10,000

[moorlad]

"After writing off the FS debt and converting the AJ loans,the Club's balance sheet looks much healthier.I have placed a value on it of around £1.25m pre new money.With cash injected on day one,the value goes to about £2.8m inc cash.

The equity in the club was worth nothing in my opinion with the FS and AJ loans intact.Add in the block on new equity from the Trust and it's a pretty terrible cocktail-the reason in my opinion why the club was in trouble.

The term investor is correct.We are investing our money without duress into the Club and are investing in its future.If the Club is successful,then the shares may go up in value.I doubt anyone would complain if we achieve success.Of course a football club is riskier than most businesses but we all know that too.No lottery winners,aliens,curry waiters-just local businessmen who are going in on a new platform.

There is no plan to sell the club-my vision is to see the shares pass down to new Cumbrian businessmen down the line-new ideas,f