| Uncle bungle looking to get out? on 12:26 - Nov 9 with 1772 views | eccles |
| Uncle bungle looking to get out? on 10:46 - Nov 9 by BrixtonR |
By converting the Debt to Equity the risk is now entirely in the hands of the Shareholder rather than the club. To put it basically its like if I owed you £1000 but was skint and gave you 1000 £1 shares in my new company in lieu. If the company went bust you'd get nothing but if the share price went up to £50 per share and I sold it you'd get £50K.
So yeah they have written off the debt but still have a chance of recouping the money if somewhere down the line they decided to sell and the Market Value of the club overall means that block of shares are worth £180M or more.
Seriously fair play to him for doing that. Basically they are prepared to take the hit for £240M in total and you can't really fault them for that. Like you I'm surprised they haven't made a big deal about this.
I don't know that much about FFP but don't think this will help with the existing fine as it's based on profits and this is just a movement on the balance sheet.
It could mean they are 'fattening' up the company to sell but it could be to do with the FFP rules going forward. who knows. Alternatively it could still mean that they are in it for the long term, I mean it would take a good few years in the premiership to get the overall value of the club to the point where share price was enough to recoup there losses. Perhaps its a sign that they are going to be much more commercially astute in the future but want to start with a clean slate ? |
Thanks Brixton.
I now have a slightly clearer idea of the situation.
Still don't know exactly what they're up to, but I guess nobody does or will until it happens. On the face of it, if they are prepared to write off £240m for us, then fair play. |  | |  |
| Uncle bungle looking to get out? on 12:33 - Nov 9 with 1758 views | whittocksRs |
| Uncle bungle looking to get out? on 12:17 - Nov 9 by londonscottish |
Embarassing, yes. TF seems to enjoy his "billionaire businessman" image over in Malaysia and spends a lot of time promoting it.
He and Ruben reportedly own just over $1bn of Air Asia stock which equates to £660m. They've effectively written off £240m of that. And the losses will continue, of course.
It's a big hit financially and in terms of reputation.
To put it into context Al Fayed is worth something like $2bn and when he wrote Fulham FC's debts off it didn't really matter financially to him or to Harrods Group. |
I cannot believe someone with £660m would be willing to write off around a third of their wealth for the goodness of their hearts. There's something going on that he isn't revealing, or has no control over. |  | | |
| Uncle bungle looking to get out? on 12:46 - Nov 9 with 1687 views | BazzaInTheLoft |
Tony Fernandes only has a minority share in QPR though doesn't he? [Post edited 9 Nov 2015 13:09]
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| Uncle bungle looking to get out? on 13:10 - Nov 9 with 1610 views | PunteR |
| Uncle bungle looking to get out? on 12:33 - Nov 9 by whittocksRs |
I cannot believe someone with £660m would be willing to write off around a third of their wealth for the goodness of their hearts. There's something going on that he isn't revealing, or has no control over. |
That's my take on it as well.
From what I've seen of TF,I've come to the conclusion he's not a savvy businessman . Of course he could still prove me wrong and somehow get us out of the mess he's put us in. |  |
| Occasional providers of half decent House music. |
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| Uncle bungle looking to get out? on 13:11 - Nov 9 with 1600 views | Mvpeter |
| Uncle bungle looking to get out? on 11:51 - Nov 9 by whittocksRs |
Hmmm... that's one way to look at it, and I hope that is what's happening.
The other is Fernandes and co are trying to consolidate their shares to look more attractive to buyer, pushing up the price (which must have been incredibly low due to the massive debt).
Furthermore, you can't just convert debt into shares without making promises to those you owe money to — it has never been very clear who finances Tune: they say Malaysian banks that work happily on a debt basis but apparently European banks such as Credit Suisse are major creditors. They're not so forgiving.
Point being is Fernandes et al owe a lot of money to someone, hence the problems with AirAsia, and we could be used as collateral in a refinancing package if the banks decided to call in their debts, especially if he's lost interest.
That's a worst case scenario, but it is very much one possibility. Transparency my hairy ar$e. |
Rumours have had the Malaysian government as a major backer for a while. Couldn't say if there's any truth to it. | |
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| Uncle bungle looking to get out? on 13:14 - Nov 9 with 1591 views | Mvpeter |
| Uncle bungle looking to get out? on 12:33 - Nov 9 by whittocksRs |
I cannot believe someone with £660m would be willing to write off around a third of their wealth for the goodness of their hearts. There's something going on that he isn't revealing, or has no control over. |
It's not just Tony writing it off though. | |
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| Uncle bungle looking to get out? on 13:14 - Nov 9 with 1589 views | TheBlob |
| Uncle bungle looking to get out? on 13:11 - Nov 9 by Mvpeter |
Rumours have had the Malaysian government as a major backer for a while. Couldn't say if there's any truth to it. |
I'd like to know what the fine print was in that Air Asia deal which cost Tone the princely sum of one Ringitt. |  |
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| Uncle bungle looking to get out? on 13:34 - Nov 9 with 1532 views | londonscottish |
| Uncle bungle looking to get out? on 13:14 - Nov 9 by TheBlob |
I'd like to know what the fine print was in that Air Asia deal which cost Tone the princely sum of one Ringitt. |
Same print as the banking licences, telecoms licences and all the other money-making ventures that were passed over to the buddies of the incoming regime at the time. |  |
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| Uncle bungle looking to get out? on 13:36 - Nov 9 with 1526 views | simmo |
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| ask Beavis I get nothing Butthead |
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| Uncle bungle looking to get out? on 19:12 - Nov 9 with 1341 views | londonscottish |
He and the others in Tune Group own 2/3 of QPR I think. The rest belongs to the Mittals. | |
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