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Debt for equity deal
  • minimarc
    Posts: 24
    Was reading on some rumour site about a "Debt for equity deal" that may or may not be going on in the background.......not sure if it was Owen's uncle, but might explain the lack of any activity (since we should have at least Vaughan/StevenP money available).
    Not entirely sure what it means as he said it would still mean BK being in charge?
  • milky71
    Posts: 8,769
    could this mean selling Players rights to third parties.
  • briceybaby
    Posts: 194
    I thought 3rd party ownership of any kind is forbidden in English football??
  • BlueJayDee
    Posts: 530
    Debt-for-equity swap

    In a debt-for-equity swap, a company's creditors generally agree to cancel some or all of the debt in exchange for equity in the company.

    Debt for equity deals often occur when large companies run into serious financial trouble, and often result in these companies being taken over by their principal creditors. This is because both the debt and the remaining assets in these companies are so large that there is no advantage for the creditors to drive the company into bankruptcy. Instead the creditors prefer to take control of the business as a going concern. As a consequence, the original shareholders' stake in the company is generally significantly diluted in these deals and may be entirely eliminated, as is typical in a Chapter 11 bankruptcy.


    ^^^^^^^^^^^^^^^^^^^^^^^^

    Taken from Wiki

    Basically our creditors would take some stakeholding and wipe out some of the debt. The currant board would remain but with a diluted share. Could free up funds by reducing debt payments and interest



  • minimarc
    Posts: 24
    Cheers Bluejay!
    Well, we can but hope i guess.......!
  • BlueJayDee
    Posts: 530
    I wonder if that would allow the banks to have a bigger say in our sale?

    (thats if the creditor involved is the banks and not Philip Green)
  • briceybaby
    Posts: 194
    that would still be pump. that would just be another ''share holder'' with absolutely no interest in investing more money than what it originally cost them to acquire shares, and ultimately cream off their dividends each year (if there is any), sit firm and hang around until someone buys the shares off them or the club is sold.
    they are all (with the exception of blue bill) business men with no interest in football. more like what they can make out of it
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