Loftus road ownership update..Inc Shareholders Letter.. Merged Thread

[IsleworthRanger]

qpr holdings have failed to pay back the loan 10M at the appropriate time.

Apart from being owned by Briatore and Bahtia plus 1 Amulya has no connection with Queens Park Rangers however unless some deal is reached by the parties involved they will aquire the stadium and the ground it is built on valued at 21.5M in return for the 10M originally loaned, a very nice profit indeed for Amulya.

Of course this also means the QPR holdings and Queens park rangers football club effectively lose 11.5 million and no longer own a ground or football stadium. you may choose to view this as I do as the football club losing its only tangible asset.

My guess is that this loan and our football stadium are caught up in a power struggle or tough commercial negotiations going on behind the scenes between the main shareholders. what the objectives of the individuals involved and the possible outcomes would be something we could only speculate on but it isnt giving me a warm feeling thats for sure.

If we were to quote a phrase "sailing in calm waters" then this default would not have been made or the loan would have been renegotiated before coming to term wouldnt it?

I dont think it is doom mongering to point out that supporters groups were told this situation would not arise when the details of this loan were originally questioned. Some were sceptical at that time and were apparently right to be concerned

Many thanks for that and it seems a lot clearer now

[qblockpete]

Could it also be and this is mere speculation, that by doing that they are leaving options open on leaving Loftus Road or building on it, because they then would own it outright? Does it also not add value to any potential investment in the future, with the ground being one of the few viable assets?

All a bit above my station all this, but is that a fair comment?

[PeterG]

"Could it also be and this is mere speculation, that by doing that they are leaving options open on leaving Loftus Road or building on it, because they then would own it outright? Does it also not add value to any potential investment in the future, with the ground being one of the few viable assets?"

if the ground goes to amulya then it is no longer an asset for queens park rangers it would only be an asset for Amulya. QPR loses its primary asset and 11.5M of the value of the club on the balance sheet. it the default goes through Amulya can do what they like within the constraints of existing council zoning rules. what they would do in all probability at least in the short term would be to lease or rent the ground to Queens park rangers, so the club could end up paying rent to Amit and Flavio through Amulya.

[Devo]

The other matter to note is that the sole asset of the club, the stadium, with its £21M valuation, means that the club still has an asset, technically, to cover it's losses. For instance if you are a company that is owed, say, £250k from the club, as long as the club has an asset you have a degree of comfort that your money is safe, as the club could, as a last measure, be forced to sell the ground to satisfy the creditors. If the stadium is removed from the club's asset sheet, then this is not the case, and the auditors would need to be convinced that the club can continue to meet its payments as they fall due. The Directors can, of course, continue to cover the losses, and it depends on how this is funded- non-repayable loans, interest bearing loans, interest free loans etc. (If I've got this wrong, I'm sure any qualified accountants out there will correct me).