The Debt Of The Club Owed To Flavio..??

[qblockpete]

Signs are that he wouldn't want the club to go into administration even though he is losing money every month and buddles of it.
With us being in adminstration, he will be lucky to see 10% of it returned and only in the event of a buyer being found realistically, would he would get much more.


Has he guaranteed any debt personally, would anyone know??

[Nodge70]

IIRC - the "update" of the stadium and refurbishment of C Club/W12 was paid for up front by FB. Everything else (inc LR itself) is loans through jointly owned "third" parties.

[Mem]

Pete - who cares - how comes you care so much and put up with all the abuse and nonsense

[qblockpete]

These people are businessmen thats all. Its financial to them, sure if we did go into administration would not be beneficial to them. Is it something like 10p in the pound?/

As for the abuse, I'm used to it. I support the club and give opinions, not always in agreement with everyone else, but have great passion for QPR. Can't help it.

[Nodge70]

[QUOTE=qblockpete;258143]These people are businessmen thats all. Its financial to them, sure if we did go into administration would not be beneficial to them. Is it something like 10p in the pound?/

Pete - the value of the repayments of a business in admin is purely down to the skill of the administrator and leniency of the creditors. Leicester got away with 1p in the £1 (which was why the FA and FL got their act together and stuck footballing penalties on top) and Chris Wright, through Ray Hocking and BDO, got £1 in the £1 from us last time I believe. The only time a club has entered administration and came out administration worse off than they entered.

[ollyhoops]

If a business goes into admin then it is worth a lot lot less.... mainly due to the debt and lack of income...

There is a similar thread regarding the ground, but I honestly do not see what gain they would have putting the club into admin as they will received a lot less.

It would be in their best interests to find a buyer... or refinance the club through other means and cut costs.

[RussRanger]

If it helps, I'll buy the giant telly on the stand from him. Need one for the World Cup.

[QPR1976]

Nodge is spot on.
Once Leicester got away with 1p in the Pound and a brand new ground, the rules were tightened. We are the only club to come out of Admin owing more than we went in !

After the initial -10 points, you have to come out of Admin/CVA on a set date. Otherwise, it's another -15, 17 or 20 dependant on how many times you've been in Admin before. -20 islikely as it will be our 3rd!
To exit Admin youhave to get over 70% of your creditorsto agree to the repayment terms. Ie 1p or 10p or whatever in the £.
If Inland Revenue are biggest creditor (they are in mostcases) they will no longer accept 10p/£. They demand more like 90%
bottom line is VERY difficult to exit Admin in a healthy state these days.

I pray we don't go down that route !

[Bernie's Barnet]

According to the last set of accounts, the only loans outstanding (relating to Flav) were £8.6m to Sarita (of which he owned 85%) and £10m to Amulya (of which I believe he and Amit own 50% each). The rest of the money he put in was in equity. Obviously I have no idea if he has made any further loans to the club since.

So it looks as though as at May 08, the club owed him, directly or indirectly, about £12.3m.

[brightonr]

Signs are that he wouldn't want the club to go into administration even though he is losing money every month and buddles of it.
With us being in adminstration, he will be lucky to see 10% of it returned and only in the event of a buyer being found realistically, would he would get much more.

Don't know the exact ins and outs of the matter, but I would imagine that the vast majority of his club related assets (loans),are secured on the ground. This would have been easier for them to achieve on a personal basis.

One of the difficulties of obtaining reasonably priced funding, both prior and during the ABC loan period, would have been the unwillingness of any major bank to secure their debt against the stadium, due to change of use restrictions etc., not to mention the fact that we were losing money year on year.

If a change of use was not granted, who would buy a football ground?

Could work for and against him, if that was his intention.

[davman]

Nodge is spot on.
Once Leicester got away with 1p in the Pound and a brand new ground, the rules were tightened. We are the only club to come out of Admin owing more than we went in !

After the initial -10 points, you have to come out of Admin/CVA on a set date. Otherwise, it's another -15, 17 or 20 dependant on how many times you've been in Admin before. -20 islikely as it will be our 3rd!
To exit Admin youhave to get over 70% of your creditorsto agree to the repayment terms. Ie 1p or 10p or whatever in the £.
If Inland Revenue are biggest creditor (they are in mostcases) they will no longer accept 10p/£. They demand more like 90%
bottom line is VERY difficult to exit Admin in a healthy state these days.

I pray we don't go down that route !

Our THIRD round of Administration???????

Don't recall any more than once so far...?

[Bernie's Barnet]

One other thing to bear in mind is that any additional funding made by Flav into the club may have been made via equity purchase rather than loans to the club. It isn't inconceivable that the other shareholders would want to protect the value of their shares by not allowing the business to become encumbered by further loans.

Again, according to the last set of accounts, the refinancing of the ABC loan aside, all further funding into the club appears to have been made by £5m share purchases in Nov 07, Mar 08 & Jun 08.

[PeterG]

caliendo is still owed a chunk of money as well

[Fez]

As I have already in another thread. Briatore will not (obvious to anyone who knows a bit about business) and clearly does not (whilst he has reduced current outgoings, Routledge is our only asset to be sold) want QPR o go into admin despite the best efforts of some people on here doing there sacremongering.

I have no doubt that we could be put into admin, a lot of money has been spent (most of it frittered on crap) and we don't generate much due to low crowds. This should have been looked at at the start of the project and a decision made whether to work slowly and make the club profitable or as seems would be the case the board thought sod it we will bank roll it into the Premiership which is where we will see a return. Otherwise why the tallk of Champions League in 4 years etc.

In reality what they did do was somewhere between the two, they blew a lot of money on wages as opposed to transfer fees and ended up with an overpaid underperforming squad of players who at best were going to a play off place. They have paid out loads of compensation to numerous managers and have blown money on W12 clubs, chandeliers and designer boutiques products which have generated ****** all for the club. Briatore doesn't have the personal wealth to continue the bank rolling and with that muppet in charge who can Blame Bernie or Lakshmi for not putting up anymore money.

Briatore wants to sell, unofficially we have an offer by the Mittals rumoured (probably the ideal solution really for them because they already know the club and can't fail to run it better than Flavio and for the fans because the club will be 'saved' and Flavio gone) or these rumoured US investors who Flavio has supposedly been courting the club too.

If has been said on here he is owed about 12 million by the club then he will get a lot less than that if we go into admin and if his was intention was to put us into admin then he may as well accept the Mittals rumoured 12m offer as it would be easier. He is holding out to get as much money back as possible but he won't be able to do this for too long, he will have to either put us into admin and lose big (unlikely) or sell us for less than he wishes but more than he would get if we went into admin!

[Bernie's Barnet]

caliendo is still owed a chunk of money as well

Maybe, but it wasn't reflected as a loan in the accounts. Part of the buyout settlement, and with strings attached for him to be paid.