Why The EWM Woollen Mill Limited Liquidator May Not Take Brunton Park

[Dick Large]

Mistake in title which should be Why The EWM Limited Liquidator May Not Take Brunton Park

The liquidator of EWM Group will of course gather in value from the assets of those
companies in the group that are in liquidation including EWM Limited, which is where
the Carlisle United 1921 debt is. The 1921 debt is an asset of EWM Limited. It is
almost £3 million and 1921 cannot begin to pay it, therefore club assets can be
taken into the ownership of the liquidator and sold for the benefit of EWM Limited's
creditors.

The Tangible Assets valuation in the latest Carlisle United 1921 accounts is £8.2 million.
Thus Brunton Park must be valued at approximately £6.5 million. Of course such a valuation
is utter nonsense.

Brunton Park has zero value as a football ground. No football club will want to buy it.
The real value of Brunton Park is as a piece of land whose owners will never get permission
to build houses or business premises on. This is because of not only the possibility of flooding
but also the actuality of such flooding twice in ten years. Any new owners would also have the
cost of demolishing the stadium. So given that there are few possible uses for Brunton Park and
there is a lot of land around the city which is of a similar disposition and there is a lot of
other land for which planning permission certainly will be given for erections, a common sense
view has to be that the value of Brunton Park is probably no more than £0.5 million. Maybe a
farmer would buy it to use it for the grazing of cattle, sheep etc.

Therefore the EWM Liquidator may well not want to use his right to take Brunton Park from the club.
He will want to get the maximum value for the creditors of all the various companies that Philip Day
has abandoned but he will want to do it in as short a time as possible. For the reasons given above,
Brunton Park may take a long time to sell. To keep the liquidation process unfinished for the amount
of time necessary to sell Brunton Park for a relatively modest price would not be in the best interests
of EWM Limited creditors and those creditors of the other companies in the group.

[Kessler]

EWM Woollen Mill Limited Liquidator. So the EWMWMLL?

[Dick Large]

You will have seen the correction in the first line of the first post.

[mullen103]

From what I’ve been told and others too it’s no secret the debt will go to the administrators and PD has no interest in it.

Therefore it’ll need paid off, won’t be important at the moment though or top of the list.

I’ve no idea what’ll happen, the administrators will want the money back as soon as possible though.

The succession plan is interesting. Apparently they was PR announcements ready for EWMs take over. But did they really want to take over? It took an awful long time from that moment to now 20 months.

[griff]

Thanks to the PGs, Jenkins’ son will now be stamping his foot.