Rags in financial trouble?

[TheMightyQuinn]

What are the consequences of them not making this payment?

Not 100% sure. I'd need to look at the Bond Prospectus document to see if there were any penalties for default but at the very least it would be a massive, massive embarrassment for them. One impact would be to hugely reduce any price the Glazers could get for them as any attempt at a sale would be seen as a fire sale.

They absolutely have to make this payment or face a critical blow to their credibility. They should be OK for the next one in August as they'll have enough cash then but they'll probably have to sell someone decent to top up the bank account to avoid a repeat next February.

60 million for Cleverly?

Are you mental? He's worth 10x that and you know it!

He's like a white Pele, George Best and Duncan Edwards rolled into one superhuman god of a man.

 

[pfazz]

This scenario may or may not be true, we have no real way of knowing but either way it sure is good fun. It would be a great subject for an undercover operation on rag cafe if anyone has access.

 

[samharris]

Not 100% sure. I'd need to look at the Bond Prospectus document to see if there were any penalties for default but at the very least it would be a massive, massive embarrassment for them. One impact would be to hugely reduce any price the Glazers could get for them as any attempt at a sale would be seen as a fire sale.

They absolutely have to make this payment or face a critical blow to their credibility. They should be OK for the next one in August as they'll have enough cash then but they'll probably have to sell someone decent to top up the bank account to avoid a repeat next February.

60 million for Cleverly?

Are you mental? He's worth 10x that and you know it!

He's like a white Pele, George Best and Duncan Edwards rolled into one superhuman god of a man.

Cleverly was their best player last sunday at the Etihad.. we shouldnt take the piss.

 

[IH8MUFC]

Can anybody break the rags debt down so an accounting idiot like me can understand :)

 

[fbloke]

Can anybody break the rags debt down so an accounting idiot like me can understand :)

Basically they owe about £700m costing about £50m pa to service.

As long as they make regular payments on the more expensive bonds they should be OK.

However the cash they have been calling on to do that is diminishing at an alarming rate without huge expenditure on transfers.

The huge cash injection from the Ronaldo has also been burnt through.

 

[waspish]

Can anybody break the rags debt down so an accounting idiot like me can understand :)

Basically they owe about £700m costing about £50m pa to service.

As long as they make regular payments on the more expensive bonds they should be OK.

However the cash they have been calling on to do that is diminishing at an alarming rate without huge expenditure on transfers.

The huge cash injection from the Ronaldo has also been burnt through.

Thought they reduced it to about 430m?

 

[r.soleofsalford]

Can anybody break the rags debt down so an accounting idiot like me can understand :)

Basically they owe about £700m costing about £50m pa to service.

As long as they make regular payments on the more expensive bonds they should be OK.

However the cash they have been calling on to do that is diminishing at an alarming rate without huge expenditure on transfers.

The huge cash injection from the Ronaldo has also been burnt through.

oh gosh how upsetting

 

[MSP]

I'm crying a river too :)

 

[fbloke]

Can anybody break the rags debt down so an accounting idiot like me can understand :)

Basically they owe about £700m costing about £50m pa to service.

As long as they make regular payments on the more expensive bonds they should be OK.

However the cash they have been calling on to do that is diminishing at an alarming rate without huge expenditure on transfers.

The huge cash injection from the Ronaldo has also been burnt through.

Thought they reduced it to about 430m?

Some of the debt was disappeared but nobody knows how or where to.

Its generally accepted that it was re-financed rather than repaid.

 

[Prestwich_Blue]

Basically they owe about £700m costing about £50m pa to service.

As long as they make regular payments on the more expensive bonds they should be OK.

However the cash they have been calling on to do that is diminishing at an alarming rate without huge expenditure on transfers.

The huge cash injection from the Ronaldo has also been burnt through.

Thought they reduced it to about 430m?

Some of the debt was disappeared but nobody knows how or where to.

Its generally accepted that it was re-financed rather than repaid.

They had two lots of debt. One was held by the club and that was re-financed using the bond issue. That started off at just over £500m but is now down to £440m I think as they've paid some of it off.

The other debt was held by the Glazers in the form of PIK notes, which attracted whopping rates of interest (>16%). That was about £250m but they announced these had been repaid. Almost certainly that's just a different debt but so far it's not the club's problem.