Share Transfers Agreed/Cooling off period

[StevieC]

Will this not require around 5,000 Hearts supporters to commit, to an average of £20 a month, for the next 8 years of their lives?

Do you know what .. if they can pull that off, I think they they deserve to get a CVA accepted.

[GreenPJ]

So which Companies/individuals are behind Bidco?

[CropleyWasGod]

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Will this not require around 5,000 Hearts supporters to commit, to an average of £20 a month, for the next 8 years of their lives?

Do you know what .. if they can pull that off, I think they they deserve to get a CVA accepted.

That's £9.6m.

I don't think they will need as much as that, but yeah, fair play to them if they do it.

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So which Companies/individuals are behind Bidco?

No-one knows for sure.

Ann Budge is the name most quoted, but FOH have been very cagey about who is actually in. That's probably a choice on the funders' part.

[adhibs]

So if this comes off for say 5m and then add in the football debts, debt free hearts will be around 5.5m in debt

[CropleyWasGod]

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So if this comes off for say 5m and then add in the football debts, debt free hearts will be around 5.5m in debt

FANCO will be.

And, if it's structured as I think it will be, FANCO won't own Tynie. BIDCO will own that until the debt is repaid.

If not, ie if FANCO own Tynie, it will be held as security by BIDCO.

[Northernhibee]

So all this does is make the process slower and more painful.

Excellent.

[adhibs]

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FANCO will be.

And, if it's structured as I think it will be, FANCO won't own Tynie. BIDCO will own that until the debt is repaid.

If not, ie if FANCO own Tynie, it will be held as security by BIDCO.

Could cause them problens down the line then if the direct debits dry up. Hope the liths keep these assets frozen anyway.

[Hibby Kay-Yay]

There's still the initial problem of satisfying the Liths with their final and best offer.

How much do people think BIDCO have managed to raise?

My guess £5.5 million

[Waxy]

Ach it's all just a sham to get out of paying 29M debt back.
Pull the plug on them now. Chancers.

[Biggie]

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Ach it's all just a sham to get out of paying 29M debt back.
Pull the plug on them now. Chancers.

No, no, no, our resident experts assure us they will not get off lightly.....anyway, I want to know the businesses that are helping bail out these rogues

[GloryGlory]

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It's not banks, as I read it.

BIDCO aren't making anything out of it, as the document says.

Yeah, right, but their expenses and "admin fees" will no doubt be quite hefty!

[Thecat23]

It seems to me reading through all this it's went from 99.9% liquidation to they are going to walk away still at Tynnie still in the SPFL, still avoid paying any real debt and they will be pretty much debt free!

But I'm not to clued up so all this I'm thinking may be wrong :D

[MassHibsteria]

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Please let it be that toss-pot Murray that picks up the whole tab.

Of all the uncertainties about this soap opera unfolding across the city, I'm as certain as can be (without hard evidence) that Murray won't lose a brass farthing if things go pear shaped. One, he's a politician. Two, like nearly all politicians he talks in unsubstantiated soundbites. Three, Murray is your classic slimy, self-serving, egotistical shyster of a politician who wouldn't understand how business really works if it bit him in the backside.

He has his bad points too.

[Coco Bryce]

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It seems to me reading through all this it's went from 99.9% liquidation to they are going to walk away still at Tynnie still in the SPFL, still avoid paying any real debt and they will be pretty much debt free!

But I'm not to clued up so all this I'm thinking may be wrong :D

I'm coming around to thinking the same. The silence regarding their demise from our more ITK posters on the PM board is worrying slightly.

[johnrebus]

If the Liths see all the dosh coming from an outside source, what is to stop them asking for more?

And more?

[Dunderhall]

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It's not banks, as I read it.

BIDCO aren't making anything out of it, as the document says.

Would you not expect some % interest rate until the loan is paid off though, surely bidco won't want the same £5m, say, back in 5-6 years as a guess from the pledges.

[CropleyWasGod]

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Would you not expect some % interest rate until the loan is paid off though, surely bidco won't want the same £5m, say, back in 5-6 years as a guess from the pledges.

Not according to this:-

4. BIDCO’s purpose is to deliver fan ownership and will therefore not seek to make any personal gain on this agreement with FANCO

At worst, they would charge FANCO the interest that they (BIDCO) are losing out on by not investing it elsewhere.

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I'm coming around to thinking the same. The silence regarding their demise from our more ITK posters on the PM board is worrying slightly.

If there is silence, it is because nothing of note has happened recently.

[Liberal Hibby]

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It's not banks, as I read it.

BIDCO aren't making anything out of it, as the document says.

Yes you're probably right on the first point - but on the second I can see no way any institution is going to lend them substantial six figure sums for several years interest free. If I could get 2% pa on my million in a bank account - why would I lose £200,000 over ten years. I think there is a difference between 'not making any money' and 'not losing interest'. Murray is spinning a line here.

We agree - just seen your post above

[greenginger]

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Of all the uncertainties about this soap opera unfolding across the city, I'm as certain as can be (without hard evidence) that Murray won't lose a brass farthing if things go pear shaped. One, he's a politician. Two, like nearly all politicians he talks in unsubstantiated soundbites. Three, Murray is your classic slimy, self-serving, egotistical shyster of a politician who wouldn't understand how business really works if it bit him in the backside.

He has his bad points too.

A pal of mine says he worked beside Ian Murray at the old Scottish Equitable in St Andrew Sq. before they were bought by Aegon.

Says he was an ignorant, bone-idle shyster, that spent his entire day skiving.

He only got the MP gig by default. Nigel Griffth, the sitting MP got caught sh***ing some bint over the Wool Sack and had to stand down and the chief opposition Lib-Dem got caught with his pants down too IIRC.

Safe to say it will be a single term appearance for little Ian.

[Coco Bryce]

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If there is silence, it is because nothing of note has happened recently.

That's good to hear. I want the worst thing possible to happen to them quicker though

[Dunderhall]

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Not according to this:-4. BIDCO’s purpose is to deliver fan ownership and will therefore not seek to make any personal gain on this agreement with FANCOAt worst, they would charge FANCO the interest that they (BIDCO) are losing out on by not investing it elsewhere.

That's my take on it, whilst not profiting as such, you can't expect them to just get the capital amount back which would be an actual loss in real terms. I can't see anyone putting money up front in that scenario.Not that it changes the game in any real way.

[Liberal Hibby]

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That's my take on it, whilst not profiting as such, you can't expect them to just get the capital amount back which would be an actual loss in real terms. I can't see anyone putting money up front in that scenario.Not that it changes the game in any real way.

One would also assume that BIDCO would have a board of directors and possibly a small number of staff who would require some sort of remuneration too.

[StevieC]

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That's £9.6m.

I don't think they will need as much as that

I was thinking £6m to secure a CVA and purchase Tynecastle.
£1m funding gap for current season.
£1m, over the next couple of years, for the upkeep of a stand that is falling to bits.
... and I'm pretty sure the remaining £1.6m left over wont be long in disappearing.

[joe breezy]

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I was thinking £6m to secure a CVA and purchase Tynecastle.
£1m funding gap for current season.
£1m, over the next couple of years, for the upkeep of a stand that is falling to bits.
... and I'm pretty sure the remaining £1.6m left over wont be long in disappearing.

even if the FOH purchase Hearts I'd imagine they would still sell Tynie at some point

[HibbySpurs]

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Mikey Forrester? Russian sailors? What the ****** are these boys on.

[CropleyWasGod]

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I was thinking £6m to secure a CVA and purchase Tynecastle.
£1m funding gap for current season.
£1m, over the next couple of years, for the upkeep of a stand that is falling to bits.
... and I'm pretty sure the remaining £1.6m left over wont be long in disappearing.

Plus the £500k football debt.

Plus a wee bit of interest, as discussed.

Probably not too far out actually.

[bodoglimt]

Had a sly look on brokeback and noticed that FOH at a recent meeting in the borders have stated that discussions are underway with CEC over building a new stand.Impressive given they dont have any money yet. I suppose that this is what being a big team is all about

With this financial genius I reckon FOH may remove the Third World debt by 2016. Once again the yams may be about to save the world

[Moulin Yarns]

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Plus the £500k football debt.

Plus a wee bit of interest, as discussed.

Probably not too far out actually.

Any guesses at how long they will have to pay back the capital (plus Bidco interest+admin fees+staff costs)? Obviously the shorter the better

[StevieC]

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Any guesses at how long they will have to pay back the capital (plus Bidco interest+admin fees+staff costs)? Obviously the shorter the better

That depends on who is lending the money, how much they are lending, and how many supporters tie themselves in to a legally binding repayment plan.

It is a huge risk for the lenders, because the only security they have is Tynecastle .. and look where that has got UKIO!

If you were "Hearts minded" would you really want to be the one that pulled Tynecastle out from under the support when they started defaulting on their payments?

So it's basically trying to find a number of investors that can collectively come up with over £7-8m, for an unsecured (non-profit) loan, over 8 years, for an untried and untested supporter led venture .. on the back of a failed business venture.
Like I said above, if they can pull this one off then they fully deserve to get their CVA accepted.

[WhileTheChief..]

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So it's basically trying to find a number of investors that can collectively come up with over £7-8m, for an unsecured (non-profit) loan, over 8 years, for an untried and untested supporter led venture .. on the back of a failed business venture.
Like I said above, if they can pull this one off then they fully deserve to get their CVA accepted.

My take is that they already have the funding in place from local businesses / wealthy individuals but its not enough to satisfy the Liths yet.

So all they need to do is up their 'investment' to secure the club and presumably Tynie too.

They then get paid back from pledges over a number of years.

Seems like a not too bad plan really.

The only stumbling block could be how much the Liths want but I reckon they can't be too far away from agreement or they would never have gotten as far as preferred bidder status.

Liquidation appears a long way off.