Off Topic Airco for All

More Allamesque lies from the Editor.

 

See, you're far more honest about yourself when you stick to a short soliloquy rather than your usual epics.

Keep it up.

 

Obi, you've no doubt seen the latest suggested scenario on the rl board.

Do you reckon it's got legs?

'If you own an insolvent company you don't have to put your own money into it to pay its debts. You can put it into liquidation and the creditors are paid out of the assets - if any. The council could take control of the SMC, terminate the lease and wind up the company. If Allam was the only or major creditor and had to whistle for his money would anyone care?'

 

If Hull City Council did that the directors of the SMC would be prosecuted for fraud and the councillors that voted to buy the SMC surcharged to make up the losses to RBS and Hull City Tigers Limited.

 

Cheers, I thought it looked to good to be true. I think some of those discussing it on there are in the accountancy game too judging by some of the comments.

 

I would have thought that would go without saying. I would expect it to e standard practice in a company contract dispute. .Surely even the Allams know they need help on this.

The solicitors must be rubbing their hands with glee, and planning their next holidays.

 

In my experience you'd do well to find a solicitor who would say " you don't really have anything there....I'd just leave it"
They win whatever happens

 

And I'm sure HCC statements will have been run past legal first as well

 

Whoever they might be these days.....

 

Most recent was DQPR fan, former CI poster and expert on sports law, Nick De Marco.

 

All Allams statements are being passed to my solicitors. I'm going to sue him for being a ****. Apparently I have a very solid case.

 

Aye, fair point. I was getting the two issues mixed up.

 

The Council didn't send the correspondence between it and the club to the press. You would have thought they'd be better advised trying to reach agreement with the Council, but I fear this will continue to get worse.

 

The fact is that the whole KC/SMC/HCC contract was not set up with top flight football in mind and no one could envisage the success that Hull City has had , nor the vast amounts of money that would be involved. But HCC allowed a loan to be taken out, that in effect now is a noose around the SMC's neck. The costs of maintaining the whole stadium would still be high, but at least there would be

If a company is insolvent it has to declare itself as such. The council could buy the SMC for £1, but in order to do that all of the creditors would have to agree to the sale. It is a non starter.

 

I read the Hull FC page to mean the Council buys the SMC for a quid and then it puts the company into liquidation thereby getting rid of the debt. The shareholder doesn't have to get the agreement of the creditors to sell its shares. Unless the Council is badly advised I don't think they'll do anything like this.

 

It is not just a case of buying for a £1 and liquidating in order to erase debts. If that was the case everyone who had a mortgage would do it. In this case the major shareholder is also the main creditor. Will he sell for £1 without a guarantee of the settlement of the loan. If the RBS loan was not secured against the lease, why on earth would Assem Allam have had to pay it, back?
The only asset that the SMC has is its lease agreement with the landlord, I am assured by people who are experts that RBS would not agree to the sale and would call in their loan, effectively taking over the lease.

 

The loan is with the holding company and guaranteed by the SMC. Do you know if RBS have a fixed charge on the lease or is it on the shares of the SMC? If they don't have a fixed charge on the lease I don't think they can do much other than sell the shares.

The loan to RBS is £2 million. The majority of the debt is owed to Hull City Tigers Limited, £6 million. Assem Allam would have required some guarantees that that would be paid. If Phil Webster is right then the offer only lasted 24 hours and all this is academic.