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How Bury guaranteed 138% annual interest on a £1m loan


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http://www.theguardian.com/football/david-conn-inside-sport-blog/2014/nov/12/bury-high-interest-loans-shadow-recovery?view=mobile#opt-in-message

 

...publicly filed Companies House documents show that since taking over Bury, Day’s company has borrowed exactly the same amount, £1m, also secured on Gigg Lane, but at an exponentially higher interest rate: 10% per month. That is a cumulative annual rate of 138%, meaning that after one year, £1m borrowed in August will, with interest, amount to £2.38m to be repaid.

 

This will not end well.

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Indeed, if they don't get promoted this year they'll be :censored: there was always the underlying question of where a club that was on it's knees was getting the money from without a properly rich backer. This goes some way to answering the question, and the answer doesn't look good for Bury.

 

Oh well to be honest after the way they treated our fans my sympathies for Bury, a club I've had an affection for since the mid-90s, was pretty low and now unless something very strange happens and either ourselves or Dale get relegated, they'll be properly :censored:

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FOREVER Bury have raised concerns over radical changes being proposed by the clubs board which they claim will marginalise shareholders.

 

An email has been sent out by the supporters group imploring all members who can to attend the clubs annual general meeting on Wednesday morning, when the proposals will be considered.

 

The communiqué outlines the plans put forward by the board in the AGM agenda, simplifying them into three key points.

 

Forever Bury allege that the clubs owners wish to cancel future AGMs, stop all future rotation of directors, and control all share transfers with the intention to water down or even buy out anyone wishing to transfer large blocks of shares.

 

 

The board are proposing radical changes to the clubs articles, which will marginalise not just Forever Bury but all shareholders and they hope to get this passed on the day, read the email.

 

If passed then the current board wont be answerable for anything they do and likewise any future owners.

 

We see this as a very dangerous route to take and are completely opposed.

 

The board of Forever Bury would like to ask any of our members who are shareholders to try and get down to the AGM to have their voice heard and play a part in blocking this proposal.

 

Burys directors, including chairman Stewart Day and chief executive Glenn Thomas, refused to comment on the Forever Bury email, saying they would be remaining silent on the issue until after Wednesdays meeting.

 

It is understood that the meeting was only called following pressure exerted by Forever Bury chairman Dave Giffard, who threatened to call an extraordinary general meeting.

 

That followed 10 months of delay, with the original AGM put back from January.

 

A statement from the directors in the close season highlighted a historical problem over the issuing of shares as the reason for the delay, with assurances that the meeting would be held by the end of September.

 

The directors have since caused further consternation after arranging the AGM for 9am, rather than outside normal working hours, as is common practice, and failing to include an update on the clubs latest accounts in the agenda.

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Why the :censored: do clubs do this? Huge gamble they're playing.

its not the club that are doing it its the idiot new owners the club is the fans and the time and money they invest every week owners are just transient caretakers .makes me more thankfull for the cautious and steady approach of mr Corney that so many are so critical off on here and other forums

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