Glazer's to pay off £220m by Monday

[silvasilvasilva]

swamp cant be sold as its the collatoral on the bond and i doubt carrington is worth 30 million let alone 200. they are probably just paying the piks with debt but at a lower rate since supposedly there not taking the 70 million out of the club that they can, although it seems a bit weird they could search the financial markets for a 200 million loan without any news leaking out.

 

[Bluefen]

It's a debt restructure...

BBC article makes more sense

<a class="postlink" href="http://news.bbc.co.uk/sport2/hi/football/teams/m/man_utd/9192771.stm" onclick="window.open(this.href);return false;">http://news.bbc.co.uk/sport2/hi/footbal ... 192771.stm</a>

They'll be slightly better off as the restructure will likely have lower interest rates but they'll have to finance it from somewhere

 

[Prestwich_Blue]

swamp cant be sold as its the collatoral on the bond.

Depends how they manage it. I seem to remember the bond document didn't explicitly rule it out. I'm not an expert on these things by any stretch but this might work.

1) They borrow whatever they need to repay the PIK notes short term.
2) They set up a subsidiary company (say, Old Trafford Developments Ltd) and transfer the swamp into that company.
3) They then transfer the £150m in the club to OTDL so it's an inter-company loan not a dividend.
4) They repay the loan from the cash now in OTDL.
5) MUFC plc pays OTDL for the use of the swamp.
6) The swamp is still an asset secured against the bonds.

This means the Glazers have effectively transferred their personal liability for the PIK notes to the club and the rental payment is tax-deductible.

 

[City Raider]

as baconface has only ever produced home grown players and never really spent anything in the transfer market, it won't make any difference at all

 

[Balti]

perhaps they can 'reduce the debt' by borowing more and just stretching it over a longer period like they usually do?

the man from the provi can help.

 

[MCFC BOB]

They've borrowed more to pay this off, haven't they?