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Winding up Order OAFC2004


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Whether it has been paid off or not we will have not been able to pay through a process of warnings that this action would be forthcoming. Tells us everything about our dire financial situation.

I don't think it tells us anything more than late payment of wages, unfinished stands and loans from mysterious Scousers.

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As I understand it a petition has been made by a creditor over unpaid debts.

 

The Court will grant a hearing date to "hear" the petition. If the company does not respond, or if no defence is mounted, then it is usually a matter of the judge issuing a WINDING UP ORDER.

 

So what are our options?(taken from a company rescue website)

 

Other than paying up there are only a few other options. There may still be time to propose a Company Voluntary Arrangement if you act FAST.... Other options include taking legal advice on defending the petition. For instance if the debt is not an agreed.

 

If the business IS VIABLE and has a good future, then administration is a very powerful means to defend your company against the petition.

 

But now that your company faces winding up, an expensive court process is required. The Court will need to consider the needs of all creditors and the petitioner, before granting an Administration Order.

 

An Administration Order, if granted by the court, will "stay" or stop the winding up petition and prevent a winding up order being made and any other legal action (except with leave of court).

 

The administrator may propose a Company Voluntary Arrangement to protect the business and allow a repayment of debts for up to 5 years. Alternatively, it may be sold to a new company or buyers (including the directors).

 

So... If the debt has already been paid then this hearing may not be processed other than to log completion but the club may still be liable for some expenses.

 

This is a long way from being terminal but it is another example of the dire state of our club.

Edited by TheBigDog
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If the club goes under what is the position on season tickets already sold?

You are a creditor of the business, well down the priority list so will lose your money. Exceptions below.

 

If you paid by debit card research "chargeback". You may get your money back.

 

If you paid the club directly by credit card or Zebra Finance research Consumer Credit Act Section 75. You will get your money back.

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Surely we've known that it's been pretty much hand to mouth existence for a while now?

Wages, overheads, debt repayments ...are more than comes in through ticket sales, sponsorship, tv money.

At the same time the decision to build a new stand , the apparent desire to bring in a manager with a "name", indicate that there is still ambition . The simple solution would be to have a rich and generous new owner - until then it's going to be continuing struggle.

Is anyone happy ? Of course not but I'm still waiting for constructive and realistic proposals that are going to change that.

If we want the current owners to invest more cash ( and probably I mean give more cash without chance of repayment) , then where are the credible options to persuade them? I don't have the answers ....but I can't see that anyone else has either.

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I assume if the club goes under this will hit Brass Bank the hardest so isn't it in their interest to keeo the club going, hence the recent selling of family silver?

I believe the debt to Blitz is in the region of £9m.

 

A CVA or administration will cap that at whatever level the football business can afford (allowing for pro-rata settlements with other creditors). Not very much.

 

I struggle to see any benefit to Blitz of allowing the football club to slip into administration because he'd be the biggest loser.

 

Unless, of course, the football ground lease is full of holes and he could flatten the lot and stick an expensive property development on the site.

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The reasons for Shez leaving are becoming clearer, could he be blamed for wanting a more secure future?

Nothing's become clearer for me! And not much will be clearer until we see what sort of manager and squad we have. Cash flow issues are nothing new and I wouldn't be surprised if we pushed creditors to the limit regularly.

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I believe the debt to Blitz is in the region of £9m.

 

A CVA or administration will cap that at whatever level the football business can afford (allowing for pro-rata settlements with other creditors). Not very much.

 

I struggle to see any benefit to Blitz of allowing the football club to slip into administration because he'd be the biggest loser.

 

Unless, of course, the football ground lease is full of holes and he could flatten the lot and stick an expensive property development on the site.

Does that include investment to build the North Stand? I'm curious about the asking price for the club and whether it includes repayment of debts to Blitz for investment at the start - ie the amount they've apparently said they'd never ask for except if we got to the Premier League.

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I believe the debt to Blitz is in the region of £9m.

 

A CVA or administration will cap that at whatever level the football business can afford (allowing for pro-rata settlements with other creditors). Not very much.

 

I struggle to see any benefit to Blitz of allowing the football club to slip into administration because he'd be the biggest loser.

 

Unless, of course, the football ground lease is full of holes and he could flatten the lot and stick an expensive property development on the site.

Surely Oldham council having put money into the stand will have stipulations not allowing it to be flattened for housing? Edited by BP1960
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Does that include investment to build the North Stand? I'm curious about the asking price for the club and whether it includes repayment of debts to Blitz for investment at the start - ie the amount they've apparently said they'd never ask for except if we got to the Premier League.

It was c£6m before the stand went up. Increased during development to c£9m. May have increased more since the last accounts.

 

I may be £1m or so out with both those figures. Can't be bothered checking.

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Surely Oldham council having put money into the stand will have stipulations not allowing it to be flattened?

I'm fairly sure the 20/40 year football ground lease wording was meant to be one part of the agreement securing that grant from the council. But in a domesday scenario a planning committee is unlikely to reject an application to demolish a football stand on a site where no football is played. We're jumping ahead quite dramatically here though.

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It was c£6m before the stand went up. Increased during development to c£9m. May have increased more since the last accounts.

 

I may be £1m or so out with both those figures. Can't be bothered checking.

That's the figure I thought it was. So is that £6m included in the asking price for the club I wonder?

Any further investment for the stand should be covered by the sale value of the stand and OEC. But if they're asking for that £6m back then they are hamstringing the club.

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That's the figure I thought it was. So is that £6m included in the asking price for the club I wonder?

Any further investment for the stand should be covered by the sale value of the stand and OEC. But if they're asking for that £6m back then they are hamstringing the club.

They will know that they have to expect less than the full amount. It all comes down to how much less.

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My colleague at work is the Liverpool Fan rep and he has to sign a non-disclosure agreement so 'might' not be straightforward... but certainly agree.

Completely understand. Surely It would be much more preferable to announce at the time it was paid, it would save a lot of heartache, angst, and speculation now.

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I struggling to square the circle here

 

On the one hand

We know top scorer sold in Jan, wages not paid on time, keeper sold, no players signed , manager moved on

We suspect Club Captain being sold

 

On the other hand

We know investment was made in Gerrard 6 loanees and a manager to retain our status

We are being allowed to believe we are pursuing a top end manager

 

I do believe now that we deserve an honest state of the union statement from the club chairman

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