A distressing mission

Last week two dignified chaps were on a very important mission to the Square Mile.

They pounded the streets that are reputedly paved with gold.

In the financial centre of the world, they were looking for someone who would lend them £10m.

That’s ‘ten million pounds.’

They were refused point blank at three institutions and in another couple they got as far as the courtesy of a coffee.

They were told over the Americanos that to get a loan one must demonstrate the ability to repay a loan.

Only in one institution did they get as far as numbers.

If that organisation had decided to provide the facility then, it would have been under punitive rates and onerous conditions.

I understand that the APR could have been as high as 42% with major assets offered up as security.

There would have been the imposition of a chap from the lenders to “work with” the Sevco High Command.

It amounted to what is called ‘conditional lending’ which is technically very naughty.

Had the two chaps been successful then it would have, in effect, amounted to administration without the points deduction.

The lender would have insisted in having their person on the board and not as merely a listening device.

It would have been a similar scenario to the 2009-2011 situation with Lloyds Banking Group and old Rangers.

Then a chap called Donald Muir was put in to impose lender driven austerity.

Things looked bleak for the Ibrox club.

Then a billionaire took over…


3 thoughts on “A distressing mission

  1. Oscar

    Ashley is not giving them a retail revenue back any time soon. And of course why would he. He actually kept the lights on when nobody else would touch it. Yet he was treated like scum by King and Co. And the SMSM I might add. Details of that loan were to be found everywhere as with his contract for Sevco retail. However not a word has been written about the last 5 million loan that was eventually got to pay back Ashley. Absolutely no leaked details or exclusives for exactly where and how that loan came about from the award winning Sons Of Jabba. And where are the Three Bears these days? I read exclusively that they would invest what ever it takes to keep the wolf’s from the door. Along with big bold headlines that Dave King wanted to throw money at Sevco. Why are the award winning Sons Of Jabba not following up on them exclusives? Let’s be fair here. I don’t remember a big brash statement on the Sevco website saying all these things. It was the SMSM and one paper in particular. There has been nothing but good news sevco stories from these individuals. While the likes of Aberdeen And the absolutely brilliant turnaround by Hearts over the last couple of years has been completely ignored. Of course to highlight Hearts amazing come back from the blink we would need to compare them with other clubs that went right to the wall! And of course this is Scotland we are not allowed to mention Macbeth or Liquidation. Hearts downfall was well documented. They were no afraid to tell the truth to the fans they asked the fans in their time of need to help and help was what they got. All of Scotlands real football supporter’s were amazed and actually proud of how the Hearts support saved their club. I never liked Hearts or their support but I have total respect for what they did to save their club.
    But yet again the new club is struggling to stay afloat and yet again the powers that be will not go public and give the fans the chance to try and save it. What are they afraid of? They have been the laughing stock of Scottish football for years now. If they actually told the truth of what’s really going on they might just be able to save themselves.

    Great work as ever Phil.

    1. PJGreenandwhite

      The payback of the loan reached companies house yet the new loan per say was not registered as they had de-listed! Still I thought if a loan had been given it has to be listed on companies house which means a mystery! So where is this £5million really from?

  2. Salted Popcorn

    £10m is a hefty loan to be looking for.

    First off, I would be interested to know the current sum total of loans – including those intended to be repaid in equity when an AGM permits. My estimates, based on published accounts from previous years, patterns of outgoings and incomes, is that the debt prior to income for this season would have been £15-20m.

    It would be interesting to know where the proposed £10m would have been allocated. What proportion would have gone to:

    a) Refinancing existing loans
    b) Repaying outstanding bills
    c) Repairing the stadium
    d) Running costs

    If it was any of the last three, it would add to the total debt carried by the club, taking it to £25-30m if my estimate of prior loans is correct. That would exceed the market capitalisation last time the club was publicly listed. Not a great place to be.


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