Rags Debt - Daily Mail & Panorama [Merged]

[Prestwich_Blue]

No-one has ever managed to say what the terms are for the PIKs. There must be something preventing the Glazers from just paying them off. There is nothing else they are paying which is costing them so much. If they were to take another loan out at LIBOR it would be at a lower interest rate than the 14.25 (now 16.25%) of the PIKs and nor would it be rolling up. It also wouldn't make sense for the hedge fund to just let them off. If they hold out, they can get 600m so why would they want the Glazers to pay a third of that - which is what it currently stands at? Will someone with better knowledge of this arrangement please explain how it works?

I can't say for certain but two things could be stopping them paying these off. The first is that the notes could be structured in such a way that they are virtually impossible, or else it's possible but prohibitively expensive, to pay off in the early years. This would be so that the holder of the notes ensures they achieve a minimum return.

The second is that they are mortgaged up to the eyeballs and can't get finance at better rates. Virtually everything they have is secured on other borrowing and they can't use the Tampa Bay Buccaneers to secure borrowings for finance not related to the franchise.

 

[bumbles]

watching who squirm?

United fans cant wait , more weight to the LUHG campaign , the more people see it the better...

-- Tue Jun 08, 2010 4:14 pm --






well done Im sure your 0.000001p will be musch appreciated.thanks for your contribution to the LUHG campaign

Put any fuel in your car lately ?? maybe you get the bus ??
our owners are very grateful. :)

youre having your own LUHG campaign ?...cheers nice one

 

[squirtyflower]

No-one has ever managed to say what the terms are for the PIKs. There must be something preventing the Glazers from just paying them off. There is nothing else they are paying which is costing them so much. If they were to take another loan out at LIBOR it would be at a lower interest rate than the 14.25 (now 16.25%) of the PIKs and nor would it be rolling up. It also wouldn't make sense for the hedge fund to just let them off. If they hold out, they can get 600m so why would they want the Glazers to pay a third of that - which is what it currently stands at? Will someone with better knowledge of this arrangement please explain how it works?

I can't say for certain but two things could be stopping them paying these off. The first is that the notes could be structured in such a way that they are virtually impossible, or else it's possible but prohibitively expensive, to pay off in the early years. This would be so that the holder of the notes ensures they achieve a minimum return.

The second is that they are mortgaged up to the eyeballs and can't get finance at better rates. Virtually everything they have is secured on other borrowing and they can't use the Tampa Bay Buccaneers to secure borrowings for finance not related to the franchise.

i remember reading at the very start of all this that the PIK notes had incredibly high redemption penalties that didn't allow for early payment

 

[samharris]

Put any fuel in your car lately ?? maybe you get the bus ??
our owners are very grateful. :)

youre having your own LUHG campaign ?...cheers nice one

No you moron...It's LGHU... malcolm is a very nice man..

 

[Prestwich_Blue]

watching who squirm?

United fans cant wait , more weight to the LUHG campaign , the more people see it the better...

You really don't get it do you thick rag?

You can LUHG as much as you like and wear as many Norwich scarves as your neck can stand but the Glazers aren't going anywhere for one reason. The money they could get for your debt-ridden club won't clear their borrowings.

£500m on the bonds, At least £400m in the USA on their shopping malls (and it could be more) plus the PIK notes, which might cost them £400m to redeem. On a very good day, the club might be worth £800m in the current climate and with the figures heading downhill fast and Baconface coming to the end of his tenure they might not even get that. They need £1.3-1.5bn and no one is goign to pay that.

So selling would leave them worse off whereas at least by hanging on and bleeding you lot dry, they make some money so Ma Glazer can do the shopping.

 

[KentBlue]

You really don't get it do you thick rag?

You can LUHG as much as you like and wear as many Norwich scarves as your neck can stand but the Glazers aren't going anywhere for one reason. The money they could get for your debt-ridden club won't clear their borrowings.

£500m on the bonds, At least £400m in the USA on their shopping malls (and it could be more) plus the PIK notes, which might cost them £400m to redeem. On a very good day, the club might be worth £800m in the current climate and with the figures heading downhill fast and Baconface coming to the end of his tenure they might not even get that. They need £1.3-1.5bn and no one is goign to pay that.

So selling would leave them worse off whereas at least by hanging on and bleeding you lot dry, they make some money so Ma Glazer can do the shopping.

So where's your response to this, Mr Bumbles, or whatever you call yourself?

 

[Skashion]

No-one has ever managed to say what the terms are for the PIKs. There must be something preventing the Glazers from just paying them off. There is nothing else they are paying which is costing them so much. If they were to take another loan out at LIBOR it would be at a lower interest rate than the 14.25 (now 16.25%) of the PIKs and nor would it be rolling up. It also wouldn't make sense for the hedge fund to just let them off. If they hold out, they can get 600m so why would they want the Glazers to pay a third of that - which is what it currently stands at? Will someone with better knowledge of this arrangement please explain how it works?

I can't say for certain but two things could be stopping them paying these off. The first is that the notes could be structured in such a way that they are virtually impossible, or else it's possible but prohibitively expensive, to pay off in the early years. This would be so that the holder of the notes ensures they achieve a minimum return.

The second is that they are mortgaged up to the eyeballs and can't get finance at better rates. Virtually everything they have is secured on other borrowing and they can't use the Tampa Bay Buccaneers to secure borrowings for finance not related to the franchise.

Aye, those are the only reasons which spring to my mind as well.<br /><br />-- Tue Jun 08, 2010 5:47 pm --<br /><br />

which might cost them £400m to redeem.

It could be a lot more than that, if they have to wait until 2017.

 

[bluevengence]

You really don't get it do you thick rag?

You can LUHG as much as you like and wear as many Norwich scarves as your neck can stand but the Glazers aren't going anywhere for one reason. The money they could get for your debt-ridden club won't clear their borrowings.

£500m on the bonds, At least £400m in the USA on their shopping malls (and it could be more) plus the PIK notes, which might cost them £400m to redeem. On a very good day, the club might be worth £800m in the current climate and with the figures heading downhill fast and Baconface coming to the end of his tenure they might not even get that. They need £1.3-1.5bn and no one is goign to pay that.

So selling would leave them worse off whereas at least by hanging on and bleeding you lot dry, they make some money so Ma Glazer can do the shopping.

So where's your response to this, Mr Bumbles, or whatever you call yourself?

Mummy has called him down for his tea

 

[samharris]

So where's your response to this, Mr Bumbles, or whatever you call yourself?

Mummy has called him down for his tea

alphabet spaghetti and instant whip :)

 

[Ducky_]

Legend.