Waiting in the Wings?

[Devonport Ender]

Have heard that there is consortium including a former Director waiting in the wings if the club goes into admin. Although waiting for administration is a smart business move a 10 point hit would mean almost certain relegation.

My fan head says the consortium should be lining up to work with the curent board and save our League 1 status but I also think they should wait for admin, take over, get the 7 (or is it 6 now) out and start afresh in League 2.

So rather than help our club in its hour of need they sit there like a bunch of opportunist vultures waiting to pick up a tasty carcass.

 

[tonycholwell]

Have heard that there is consortium including a former Director waiting in the wings if the club goes into admin. Although waiting for administration is a smart business move a 10 point hit would mean almost certain relegation.

My fan head says the consortium should be lining up to work with the curent board and save our League 1 status but I also think they should wait for admin, take over, get the 7 (or is it 6 now) out and start afresh in League 2.

So rather than help our club in its hour of need they sit there like a bunch of opportunist vultures waiting to pick up a tasty carcass.

Sadly D'Ender, you are probably correct from an emotional point of view about "our" club.

From a business/liability point of view, "they" are being pragmatic and sensible.

 

[Greenskin]

I didn't think a chance of administration existed?

Administration won't help - they would only be interested in paying creditors. With outgoings so high and little revenue coming in administrators would be better off winding the whole thing up and paying what they could to creditors.

Why? If they wind us up there'll be the same amount of assets available to pay off the creditors as there will be if we go into administration. And those assets, such as they are, will be worth more if Argyle continue as a going concern then if we're wound up and cease to exist.
As long as there is a group in the wings willing to cover the ongoing losses, then admin would be the best course of action.
Trouble if, if there seems to be no hope of anyone taking on the club, as you say we could be wound up to avoid any ongoing losses. But then that would devalue the primary assest - Home Park.

Theer is no money coming in - the assets will have more value there and then than. MONEY COMING IN DOES NOT COVER OUTGOINGS.

I'm not quite clear on this issue.Surely,by definition,any club which goes into administration must have outgoings which are greater than income to have built up debt in the first place? Many smaller clubs with far less gate income than Argyle are getting [the cash flow from gate money has actually been quite good in the last month or so],although almost certainly without as high a wage bill,have gone into administration,so why should Argyle be any different? Genuine question, i just can't see the difference.

 

[Mark Pedlar]

Some clubs going into administration have either a small operating surplus but can't cover their debt or can begin to operate at a small surplus by getting rid of some of their commitments. As I understand it, even reducing our wage costs to £0, we would still not have enough to pay our outgoings. Therefore any administrators would simply sell everything and pay off as much of our capital debt as possible, but continuing to run the club would be a non-starter. .

 

[Tim Chown]

Well yes, going into administration starts the process of financial negotiations to restructure the debts and reduce the running costs. Quite brtually if necessary. This can happen before administration of course, but if there are many debtors this may be tricky to achieve. Hopefully it's something Ridsdale is experienced at by now.

 

[PL2 3DQ]

Have heard that there is consortium including a former Director waiting in the wings if the club goes into admin. Although waiting for administration is a smart business move a 10 point hit would mean almost certain relegation.

My fan head says the consortium should be lining up to work with the curent board and save our League 1 status but I also think they should wait for admin, take over, get the 7 (or is it 6 now) out and start afresh in League 2.

Does the consortium include Argyle fans?

 

[Neil Corner]

An administrator's role is either to nurse the company back to health or, failing that, realise assets for the benefit of creditors.

As Mark says above, if the Club does not have enough income and the business is not viable, then the administrator's only option is to sell off the assets or find another Buyer. If the administrator does view that the business is not viable, then he will only act in the best interests of the creditors at this point and most likely sell the assets, (the ground etc).

If our incomings v outgoings are low then without a white knight on the horizon, administration would be a very risky move if the Club is to continue.

The lack of realistic options we have at the moment and the 'games' currently being played by the Board are astonishing.

 

[Peverell Pete]

Have heard that there is consortium including a former Director waiting in the wings if the club goes into admin. Although waiting for administration is a smart business move a 10 point hit would mean almost certain relegation.

My fan head says the consortium should be lining up to work with the curent board and save our League 1 status but I also think they should wait for admin, take over, get the 7 (or is it 6 now) out and start afresh in League 2.

Does the consortium include Argyle fans?

At least one! Sorry I don't know who they all are.

 

[Greenblooded1]

Have heard that there is consortium including a former Director waiting in the wings if the club goes into admin. Although waiting for administration is a smart business move a 10 point hit would mean almost certain relegation.

My fan head says the consortium should be lining up to work with the curent board and save our League 1 status but I also think they should wait for admin, take over, get the 7 (or is it 6 now) out and start afresh in League 2.

I hope its not Phil Gill or that useless prat Leznor or we are doomed!

666 :shock:

 

[Peter Jones]

Peter Bloom? Ivor Jones?

 

[Iggy]

Andre Previn, James Last

 

[MylesPAFC]

At this current moment, I think I'd take that as opposed to the other, unthinkable, option.

Completely agree, hate to say things like this but relegation is a much more favourable option than keep on working with the current board. Only thing is if we don't bounce straight back up then we are in the poo.

 

[esmer]

As I understand it the administrator's first priority would be to try to sell the club as a going concern. He would value the assets and look for a buyer who would match, or better, the sum he would get if he liquidated the company. As the ground is mortgaged up to the hilt, the only assets of note are the players, so I don't suppose,in that case, it would take much to buy the club from the administrator.

 

[Mike Charlick]

Andre Previn, James Last

The team could run out to Grieg's Piano Concerto, by Grieg.

 

[PL2 3DQ]

Julian Seaward? David Rowe? Chris Garden? Nic Couchman?