Hedontplayforyou wrote: ↑Sat Feb 18, 2023 8:53 am
Long story short? The idea that there was new investment is now quashed and it was in fact a re-financing of the debt?
Hi Hedont, let's look at what we know from available information:
1) Mike Smith, one of directors had submitted forms in 8th Feb that states MSD debt has been satisfied, i.e. repaid in full.
2) MSD has no obligation to submit forms to say their debt has been satisfied, BUT, they would object and take action to protect their debt if the filing isn't accurate.
3) Directors don't have obligation to file that debt has been satisfied and don't have to file immediately debt has been satisfied.
4) MSD charge applied to all the companies charged, there is no logic that says debt can be satisfied for the 3 companies "satisfied" has been filed and it doesn't equally apply to the Kettering and Longside.
5) So, my first conclusion, is that Burnley FC and all other companies have paid off debt to MSD.
6) Where has the money come from to do this?
7) Three alternatives:
8) New loan from another lender? We will know this if/when a new lender files their charge by 1st March at latest. (This being 21 days after 8 Feb). BUT, very unlikely a new lender wouldn't file their charge immediately they paid money to BFC. Don't forget BFC didn't need to file that MSD loan had been satisfied immediately after it was repaid. They may have repaid earlier - there were rumours in Nov - and not filed until January transfer window closed.
9) Surplus cash flow from parachute payment, assuming second instalment of parachute payment received in December. Plus, of course, confident view of budgets through to end of season...BUT, this probably depends on confidence in future cashflows.
10) New investments into Velocity Sports Partnership (US entity). We know this has always been Alan Pace's plan. We were introduced to a new investor in Nov 2021. There was talk of new investor that didn't come through when we lost at Norwich, April 2022. The club has progressed a lot since then. Burnley are playing good football. It looks likely Burnley will be back in Premier League next season.
11) So, my second conclusion is that there is progress on new investors. This doesn't mean a billionaire had taken a stake, more likely a few smaller millionaires have bought stake in VSP (US).
12) Just to throw another thought in, we have 2 current BFC directors, both have invested in BEC before. One or both of them might have fancied a modest new investment. Just my speculation. The beauty of VSP (US) is that the public never gets to see who had invested (and how much) unless they choose to announce it. F