bede 19 Posted May 21, 2012 Share Posted May 21, 2012 I don't really get the whole business side of CVA vs newCo, but the one thing that I have kept reading is that if we take the CVA route, we have to pay creditors back for the debts we owe them, like 1p to the pound or something. If they say no, we go and launch a newCo which will lead to dissolving the old business and any debts. What that says to me is that with a CVA if we owe someone 10m pounds they'll only get 100,000 which isn't much but if we go newCo we pay them nothing, so why would anyone not want us go through CVA? Quote Link to post Share on other sites More sharing options...
eosmhdo 1,879 Posted May 21, 2012 Share Posted May 21, 2012 I don't really get the whole business side of CVA vs newCo, but the one thing that I have kept reading is that if we take the CVA route, we have to pay creditors back for the debts we owe them, like 1p to the pound or something. If they say no, we go and launch a newCo which will lead to dissolving the old business and any debts. What that says to me is that with a CVA if we owe someone 10m pounds they'll only get 100,000 which isn't much but if we go newCo we pay them nothing, so why would anyone not want us go through CVA?To make an example of us probably Quote Link to post Share on other sites More sharing options...
Devlin 222 Posted May 21, 2012 Share Posted May 21, 2012 You won't get any real answers. To make an example of us some people seem to think. Quote Link to post Share on other sites More sharing options...
gunslinger 270 Posted May 21, 2012 Share Posted May 21, 2012 they won't. if green wants a cva he will get it. Quote Link to post Share on other sites More sharing options...
annanbear 5 Posted May 21, 2012 Share Posted May 21, 2012 I thought if the CVA is turned down, then the assets will be sold and proceeds given to the creditors, so they may get more that way than a CVA? Quote Link to post Share on other sites More sharing options...
blanco79 1 Posted May 21, 2012 Share Posted May 21, 2012 I thought if the CVA is turned down, then the assets will be sold and proceeds given to the creditors, so they may get more that way than a CVA?when the cva gets turned down, CG buys all the assets for the newco. Quote Link to post Share on other sites More sharing options...
Loyal Bear 72 363 Posted May 21, 2012 Share Posted May 21, 2012 when the cva gets turned down, CG buys all the assets for the newco.And the cash raised for the sale goes to the creditors. The administrators will only take it down the CVA proposal route if they feel the creditors will get a better return than in a pre-pack liquidation. Quote Link to post Share on other sites More sharing options...
TheLawMan 6,240 Posted May 21, 2012 Share Posted May 21, 2012 they won't. if green wants a cva he will get it.No matter how many times, you say this gs, it will never ever be true. Quote Link to post Share on other sites More sharing options...
Jimfanciesthedude 24,506 Posted May 21, 2012 Share Posted May 21, 2012 isn't Whyte guaranteed 18 mill from a newco asset sale whereas in a cva he isn't first choice for cash Quote Link to post Share on other sites More sharing options...
john meikle 3 Posted May 21, 2012 Share Posted May 21, 2012 And the cash raised for the sale goes to the creditors. The administrators will only take it down the CVA proposal route if they feel the creditors will get a better return than in a pre-pack liquidation.Does that mean that if the cva is turned down, the assets will go on sale to the highest bidder?I'm thinking TBK or others might want to put in an offer for the stadium, trademarks etc. Quote Link to post Share on other sites More sharing options...
Loyal Bear 72 363 Posted May 21, 2012 Share Posted May 21, 2012 isn't Whyte guaranteed 18 mill from a newco asset sale whereas in a cva he isn't first choice for cashI doubt it as the assets will only be transferred for what the preferred bidder pays for them. I reckon this is a figure which is already estimated by the admins.Does that mean that if the cva is turned down, the assets will go on sale to the highest bidder?I'm thinking TBK or others might want to put in an offer for the stadium, trademarks etc.If the preferred bidder has a plan B for a Newco then they will be the purchasers of the assets at a price that has probably already been established between themselves and the admins. This may have been one of the issues the admins had with TBK, in that they weren't willing to have a Plan B and were going soley for a CVA.But if the consortium couldn't agree a CVA and wanted to walk away it would be a case of assets to the highest bidder. Quote Link to post Share on other sites More sharing options...
gunslinger 270 Posted May 21, 2012 Share Posted May 21, 2012 No matter how many times, you say this gs, it will never ever be true. my faith in your accuracy has been shaken lately. Quote Link to post Share on other sites More sharing options...
TheLawMan 6,240 Posted May 21, 2012 Share Posted May 21, 2012 my faith in your accuracy has been shaken lately.You shouldnt misquote me or miss out words such as "potential" then Quote Link to post Share on other sites More sharing options...
gunslinger 270 Posted May 21, 2012 Share Posted May 21, 2012 You shouldnt misquote me or miss out words such as "potential" then yeah but my assesement of each bids worth also looks to be closer than yours in said thread. Quote Link to post Share on other sites More sharing options...
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