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Rangers save Aberdeen from insolvency


GMac

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Aberdeen have just slipped out their annual report. Another loss taking their debt to £16.5m. They are now worth a total of £14,000. Had it not been for the sale of Aluko to Rangers then they would be technically insolvent. Well done us.

:7325:

http://www.afc.co.uk/staticFiles/de/b9/0,,10284~178654,00.pdf

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chairman Stewart Milne has agreed to write off a £3.7M loan due to him to help the club during the current financial crisis. .............WOW

And if we write of loans to players they try to do us.

The point is Aberdeen are begining to look very similar to Hearts.

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Just checked the BBC site. Surprise, suprise its all good at Aberdeen. 6m debt has been waived(it hasn't its been swapped for shares). And this £6million saving is to be used to develop their new Stadium. No its not. Unbelievable made up pish

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I've just read through their accounts. Absolute car crash.

Loss of £1.4m

Net debt of £16.4m including £10.8m to the bank

Shareholders had to loan £1.25m during the year to pay the bills

Going concern emphasis of matter in the auditor's report

etc.

but the best bits....

Net assets of only £14,000

They only managed that by revaluing the stadium up to £17m by writing back depreciation previously written off

(We all remember the "depreciated replacement cost" valuation and using this to prevent technical insolvency!)

They have capitalised £2.7m of costs for moving to their new stadium (will that ever happen?)

If they had to write off the £2.7m, they would have been bust to the tune of £2.7m

A few other points, Milne's company £3.5m) and Aberdeen Asset Management (£2.25m) are to get new preference shares in exchange for these loans. These new shares effectively wipe out the ordinary shareholders value as they get first dibs (after the bank) on any winding up.

P.S. I didn't know (or care) that the stadium is actually owned by a subsidiary company called Talltray Limited, which is also where the bank loans are.

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Their turnover was £8.337 million - so their debt is double the turnover.

Our turnover last year under white was £57Million - with debt at £14million roughly a quarter of our turnover (this is published in our annual accounts for last year).

Why are the banks not chasing them like they did us?

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I've just read through their accounts. Absolute car crash.

Loss of £1.4m

Net debt of £16.4m including £10.8m to the bank

Shareholders had to loan £1.25m during the year to pay the bills

Going concern emphasis of matter in the auditor's report

etc.

but the best bits....

Net assets of only £14,000

They only managed that by revaluing the stadium up to £17m by writing back depreciation previously written off

(We all remember the "depreciated replacement cost" valuation and using this to prevent technical insolvency!)

They have capitalised £2.7m of costs for moving to their new stadium (will that ever happen?)

If they had to write off the £2.7m, they would have been bust to the tune of £2.7m

A few other points, Milne's company £3.5m) and Aberdeen Asset Management (£2.25m) are to get new preference shares in exchange for these loans. These new shares effectively wipe out the ordinary shareholders value as they get first dibs (after the bank) on any winding up.

P.S. I didn't know (or care) that the stadium is actually owned by a subsidiary company called Talltray Limited, which is also where the bank loans are.

Tell this to the BBC. Think they've been looking a at different set of books. They've actually taken the loan swap for shares as a fucking investment.

http://www.bbc.co.uk/sport/0/football/20516243

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Their turnover was £8.337 million - so their debt is double the turnover.

Our turnover last year under white was £57Million - with debt at £14million roughly a quarter of our turnover (this is published in our annual accounts for last year).

Why are the banks not chasing them like they did us?

The bank did chase them, the other 11m is a bank loan and one their club services at 600k a year. It's due to be repaid when pittodrie is sold.

The directors in 2011 paid 5m of debts back to the bank but became due they then became creditirs, which has now become preference shares. It's good news for Aberdeen fc as they don't have any shareholders looking to make money out of shares anyway and they've basically accounting wise saved themselves a fortune.

The key I guess is whether the major shareholder has the balls to pay of the bank debt? It would save them 600k a year but fact is they are still losing that too.

There is no comparison at all with hearts here

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