What today's Bank Of England Base Rate Rise to 4% means to CUFC 1921

[_Stefan_Kuntz]

[_Stefan_Kuntz]

The CUFC 1921 loan from Purepay is a business loan. Interest on such loans is charged at 3% above Bank Of England Base rate,
which is now 4%. This makes the interest rate that CUFC 1921 are now being charged on the loan 7%.

Thus in the year beginning now the interest added to the overall value of the loan will be £175,000.
The interest added each month will be £14,583.33

These figures are under-statements because at the end of each month the interest will be added to
the overall loan total and the interest for the next month will be on that new overall total.

[Blackdogblue]

Less any payments made Stefan.

Doesn’t bother me as on fixed rate mortgage at 1.42% and ends in 15 months.. good news for savings rates on the flip side..

Chalky will be quids in the tight old git 😎

[_Stefan_Kuntz]

F­uck all payments have been made and f­uck all payments are likely to be made.

If Philip Day wakes up in a morning having not had a good s­hag, Carlisle United will no longer exist.

[Blackdogblue]

The loan agreement must have legal clauses in it where withdrawal cannot be at the sake of administration or club bankruptcy, after all there was a vested interest in why it was loaned in the first place unless it was drawn up by a complete idiot…. If it was that simple he would have his money back by now…. Think you worry too much

[_Stefan_Kuntz]

The loan agreement must have legal clauses in it where withdrawal cannot be at the sake of administration or club bankruptcy

Why would that be? It would be extremely silly of the creditor, meaning that it need never be paid back.

The reality is that Philip Day's Purepay have a Charge on all the club's assets including money in bank accounts. In the event of the charge being fully implemented and not totally satisfying the debt then the three owners of 93.5% of the football club's shares have given Personal guarantees for the value of the loan.

We have to remember that Brunton Park's real value is almost f­uck all. This is because of the flood risk and the actuality of two overwhelming floods within easy memory. There is also a "football use only" covenant on Brunton Park. No sane person would want to own it.

[mullen103]

F*uck all payments have been made and f*uck all payments are likely to be made.

If Philip Day wakes up in a morning having not had a good s*hag, Carlisle United will no longer exist.

That worry’s me, not the fact day has **** ***, but that it supposedly can be called in at any time.

Rumours are day is unhappy with people at the club, has no reason to visit Carlisle so nothing stopping him.

If I was him I’d wait and wait, especially as interest rates are getting high and call it in when he has a chance of getting it back. He has JJ on the board so knows how much money it has, it’s whether he wants to go after the owners.

[Blackdogblue]

Having a charge on an “asset” reminds me of there’s equity release loan shark companies… when mum & step dad died within 2 weeks of each other (long story).. there was a “charge” against the property which was the “asset”.. they can only claim back their money if the “property” sells in your case the ground… if there is a covenant of the property (lots of options..) if has to be sold as a sports ground… that would have to be challenged in the High Court.. expensive & a risk of loosing legal fees….. I am not a lawyer, just a lowly Global Quality Manager but tbh… I bet every line of the agreement has been scrutinised by PD… if he had a way out he would have done by now…

[_Stefan_Kuntz]

It is a certainty that legally PD has all of the aces. But the terrible publicity that he would get for taking the action that would cause an EFL football club to cease to exist is probably what is inhibiting him from foreclosing on CUFC 1921.

To be fair on him he has the right to get his (Purepay) money back in any way that he choses. It is the fault of the owners of the club that they were / are so inept that they became desperate enough to get him involved.