" Absolutely brilliant "

To convert debt to equity (£68m) of it, new shares have to be issued so mr Issacs shares value will go down to about the same he paid for them, well done VT, that shows that the boodsucker should have sold his shares to VT while he had the chance, great news of this debt to equity




viewtopic.php?f=2&t=169013

You can't just create shares to increase one person/group's stakeholding. Isaacs' individual shares will be worth less but he will be given more shares, as will every other shareholder upon creation.

You can't just create shares to increase one person/group's stakeholding. Isaacs' individual shares will be worth less but he will be given more shares, as will every other shareholder upon creation.

That's not true ,if you create more shares all other shares are devalued and tan can do it as he owns 90 percent of them it happened when Sam left to

Hi Igovernor

Where did you hear or read about this £68m debt to equity story? Link please

You can't just create shares to increase one person/group's stakeholding. Isaacs' individual shares will be worth less but he will be given more shares, as will every other shareholder upon creation.

Yes you can , provided the company has enough unissued shares in its authorised share capital to do so (on this point I am not sure it has and may need a shareholders meeting to increase the capital further) and if there is an option for the creditor to do the conversion (which there is).

No but you can have a share issue if the board agrees, and being as VT is the board, there is not going to be a problem, CCFC is not on the stock exchange so the same rules do not apply to LTD companies, when you issue a new batch of shares, with CCFC it will devalue the price of shares as the value of the company stays the same but the company has many more shares, Issacs will still lose out

Hi Igovernor

Where did you hear or read about this £68m debt to equity story? Link please

It is not a story , but an announcement made by Vincent Tan and Ken Choo at a meeting with fans this afternoon.

Can we finally move on from this now!

Tan been on sky sports talking about it and why it has happeed also spoke about Langstone

Hi Igovernor

Where did you hear or read about this £68m debt to equity story? Link please

viewtopic.php?f=2&t=169013

Found another link here: http://www.skysports.com/football/news/11704/10163403/cardiff-city-owner-vincent-tan-writes-off-16368m-of-clubs-debt

Not a Tan fan, but credit where it's due for coming good on this promise. We're moving in the right direction.

Typical skysports, this has nothing to do with the embargo



Cardiff City owner Vincent Tan has written off £68m of the Sky Bet Championship club's debt.

Tan has converted the debt into equity and pledged the club will be debt-free within five years - he hopes the plan will lead to Cardiff's transfer embargo being lifted.[

Vincent Tan insists he is ready to half Cardiff City's approximate £108m debt and the Bluebirds owner maintains the club will be debt-free by 2021.

BBC

Thursday 11th Feb 2016

Tan plans to convert £68m he is owed by the Championship club into equity while writing off another £10m.

Cardiff's debt was £174m at the end of the 2013/14 financial year after their season in the Premier League - most of it owed to major shareholder Tan.

"That would leave £40m owing to me," Tan told BBC Sport.

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wow - well done Vinnie
Although he looks like he could give you hell if you didnt put in a good shift building that bridge over the river Kwai

So how does he convert debt to equity (£68m)?? I don't get it, can someone explain it in simple terms?

Typical skysports, this has nothing to do with the embargo



Cardiff City owner Vincent Tan has written off £68m of the Sky Bet Championship club's debt.

Tan has converted the debt into equity and pledged the club will be debt-free within five years - he hopes the plan will lead to Cardiff's transfer embargo being lifted.[

Well they have a point.

So how does he convert debt to equity (£68m)?? I don't get it, can someone explain it in simple terms?

Im guessing as we're already under an embargo he is just going to plow the £68 million in now as the embargo isn't from this season but from last. The moving forward he/we the club will comply with ffp and be debt free by 2021

Vincent Tan insists he is ready to half Cardiff City's approximate £108m debt and the Bluebirds owner maintains the club will be debt-free by 2021.

BBC

Thursday 11th Feb 2016

Tan plans to convert £68m he is owed by the Championship club into equity while writing off another £10m.

Cardiff's debt was £174m at the end of the 2013/14 financial year after their season in the Premier League - most of it owed to major shareholder Tan.

"That would leave £40m owing to me," Tan told BBC Sport.

Not sure where the media get their figures from sometimes , but I recall they got this debt figure wrong then i.e. at the time that the 2013/14 accounts were published.

The actual total debt due at 31 May 2014 was £157.2m ( a huge figure but a lot less than the figure quoted by them here) , of which £122.8m was owed to Vincent Tan.
The amount owed to him must have come down slightly since , because he now says that writing off £10m and converting £68m into shares takes the debt owed to him down to £40m so it must have been £118m before that.
Overall , today`s announcement of such a huge debt write off and conversion to shares is tremendous news for the finances of the club.

So how does he convert debt to equity (£68m)?? I don't get it, can someone explain it in simple terms?

Im guessing as we're already under an embargo he is just going to plow the £68 million in now as the embargo isn't from this season but from last. The moving forward he/we the club will comply with ffp and be debt free by 2021

Converting debt to equity has no impact on compliance with FFP.
Sorry , it`s a bit of an accounting thing , but debt to equity is just a balance sheet adjustment (a very significant one as it converts loans which the club would have to pay back in the future to shares which are never repayable) and doesn`t go through the profit and loss account which is the only measure covered by FFP. The FFP rules don`t actually look at total debts of a club just how much of a profit or loss it made in the year.
Writing off debt altogether (quoted at £13m last season and now a further £10m this) does directly improve the FFP situation as it directly increases reported profits.
Future debt forgiveness over the next five years would be better (for the club) in FFP compliance terms done as a debt write off rather than a conversion for the above reason.

Brilliant indeed he did say the he would leave the club in good state.