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CVA and Dave King's Shares


bs1982

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Can anyone explain what happens with Dave King's shares in regards to agreeing a CVA please?

Green's consortium acquired about 85% of the shares from Whyte for a pound or two allegedly. Then they proposed putting £8.5m cash into the CVA pot.

Does King have to match their investment into the CVA pot on pro rata basis of his shareholding which would add about another million pounds for the creditors? If not are his shares diluted at all by the CVA process or do they simply remain unchanged?

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The Dave King question is a strange one as he is currently serving a restraining order which effectively bans him from dealing in property within the UK.. I've no idea how this would relate to his share holding or any future investment he may want to make in the club or indeed if this prevents him from selling his shares should he wish to do so..

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I'm sure that cause the club was bought for a nominal amount (ie £2 of 85%) the rest of the shares would be worthless if bought at that scale, meaning they would have to offer if they where buying at full market value, but you're not going to buy 85% for £2 and then spend say £500,000 for the other 15% (figures only for illustration and not accurate)

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I don't believe he is required to contribute anything. If he is, then the thousands of small shareholders like myself would be required to contribute also.

And the RST would have to do likewise with their shares.

(gets coat, scurries off briskly and awaits for grenade to explode)

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Nothing happens with King's shares or the shares of any of us (assuming the CVA goes ahead and we don't go down newco route). Nor do any of us have to put money in for the CVA. King will continue to own c.5% going forward.

(IIRC, the consortium would need >90% of the shares before they could force us to sell our shares to them, but that won't happen anyway as the bad feeling generated from forcefully taking our shares would be a disaster PR-wise.)

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Nothing happens with King's shares or the shares of any of us (assuming the CVA goes ahead and we don't go down newco route). Nor do any of us have to put money in for the CVA. King will continue to own c.5% going forward.

(IIRC, the consortium would need >90% of the shares before they could force us to sell our shares to them, but that won't happen anyway as the bad feeling generated from forcefully taking our shares would be a disaster PR-wise.)

I have a feeling the magic number is 92%

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