ADMINISTRATION IF'S AND BUT'S

My apologese but i'm shit when it comes to this sort of thing but i read on here somewhere that administration can be useful (clearing debts etc) but what's the downside,it can't be that good i'm not quite that naive

For a start the club would get a points deduction. Another bad point is that any player worth his salt would get sold.

The real problem with administration is coming out of it. Its not a case of all debts are cleared, the club will have to pay some of the debt back and this will usually be down to the creditor and how much they decide. It they cannot come to soem sort of agreement then the club goes into liquidation which basically means all assets are sold cheaply and the last person out turns the lights off as the club will not exist anymore.

For a start the club would get a points deduction. Another bad point is that any player worth his salt would get sold.

The real problem with administration is coming out of it. Its not a case of all debts are cleared, the club will have to pay some of the debt back and this will usually be down to the creditor and how much they decide. It they cannot come to soem sort of agreement then the club goes into liquidation which basically means all assets are sold cheaply and the last person out turns the lights off as the club will not exist anymore.

Yes, administration is not the answer to all financial problems that some people seem to think. It would put the club back 10+ years in terms of development and virtually any player worth any sort of transfer fee would have to be sold until the debts are paid, couple that with a transfer embargo that would also be in place due to non-payment of other debts and the picture is none too rosey

Whatever people's views on TG and VT, they have at least ensured that this is something we don't, currently, have to worry about and I would have no problem in them recouping what they've put in should we reach the promised land this season

The issue is a bit clouded because of all the different debts which are secured against the club and which ones take priority. Vincent Tan, Ray Ranson, TG and PMG all have secured debts and it is unclear whether there is a pecking order, or they all have equal claim on the club assets.

Langston also has a large unsecured debt, along with other club directors.

As BakedAlaska pointed out ALL creditors would have a voting % dependent on what they are owed and they all have to agree (secured or not) on a CVA in order to exit Administration.

A conflict could occur as Langston in theory could have a high voting % due to being owed anything from £15m to £30m+ (potentially 50%) of the overall debt but would be well down the list of creditors when it comes to receiving any kind of payment from released assets. It is hard to envisage them voting for a deal which pays Ray Ranson his full £3m whilst they walk away with a few thousand pounds, despite being owed over £20m for the past 7 years.

However, as BA explained the alternative is liquidation where basically the same thing would happen, but the assets could be worth even less.

Administration isn’t really a good option but it might be on the agenda if DJ f**ks up promotion again this year.

thank you for your very explanitory posts it obviously is the worst case scinario and NO city fan wants to even think about it but i have to feel realistic about these things. But in the meantime COME ON THE BLOOBIRDS