| Cardiff Fan Here 01:44 - Oct 12 with 20787 views | welshman79 |
I come here in piece i don't want any negative or stupid idiotic comments here so dont bother, To be honest i bet you guys are laughing at us right now with all the crap that's been going on at our club, and to be honest i don't blame you whatsoever.
the way Hitler Tan is running the club he will ruin us, im just interested in your opinions in the situation and if you plan on posting any hateful or horrible comments dont bother i want this to be a friendly thread. |  | | |  |
| Cardiff Fan Here on 19:01 - Oct 15 with 825 views | reddythered |
| Cardiff Fan Here on 18:58 - Oct 15 by MattG |
Does the statement "Tan Sri Vincent Tan has agreed to write off interest of approximately £5.8m on previous loans made to the club and stated that all future loans up to an aggregate value of £50m will also be interest free" equate in any way to the conversion of debt to equity?
Nope, thought not. This was surely the perfect time for Tan to do what he's been threatening / promising to do for months but he didn't. |
Tan will soon own 98% of the shares. I'd presume to convert debt to equity would require the club to issue new shares. I'd also presume that's not likely to happen within days.
So again, it's something that will happen if it happens. | |
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| Cardiff Fan Here on 19:16 - Oct 15 with 795 views | getcarter |
Sounds like there will no future loans from Tan, clawing back as much as he can over the next couple of seasons before disappearing into the sunset. | | | |
| Cardiff Fan Here on 19:19 - Oct 15 with 782 views | MattG |
| Cardiff Fan Here on 19:01 - Oct 15 by reddythered |
Tan will soon own 98% of the shares. I'd presume to convert debt to equity would require the club to issue new shares. I'd also presume that's not likely to happen within days.
So again, it's something that will happen if it happens. |
Fair enough on the dilution of shares but why the reference to future loans? He could have written off the historic interest and remained silent on future "investment" but instead chose to specify that it would be in the form of loans. |  | | |
| Cardiff Fan Here on 07:52 - Oct 16 with 732 views | Shaky |
| Cardiff Fan Here on 19:19 - Oct 15 by MattG |
Fair enough on the dilution of shares but why the reference to future loans? He could have written off the historic interest and remained silent on future "investment" but instead chose to specify that it would be in the form of loans. |
Who knows, but since shares and debt are in this instance both forms of risk capital, he is giving the impression that a financing commitment is in place, although that doesn't in fact semantically appear to be the case.
Furthermore, although the statement is very short on detail regarding the interest waiver, it could be he is nominally charging the club interest so they get the benefit of the tax shield, and then converting the proceeds to shares so there is no cash-flow impact.
Makes sense to me. |  |
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