Preston North End Discussion 2009-2010

[noel]

I think you may have a point there Dan.

[noel]

"As at the 3 June 2010 the Group had total indebtedness of £29,660,000 ......
......In summary, if the Offer is not accepted by sufficient PNE Shareholders, the financial support of Guild will be withdrawn and no financial support will be provided by DPNE. It is highly unlikely that any of the Group's assets will have any immediate realisable value and the Board would have no option but to take steps to place the Group into an insolvency procedure."

In other words, it's Hemmings or no PNE
Hemmings now owns 50% of the shares.

[Spitfire]

He would appear to be holding ALL the cards.

[filmoss]

But you wouldnt want a sugar daddy now would you !!! []

[noel]

No you're quite right Phil and yet again you continue to miss the point. I'm fed up of repeating that teams should be self funding. If this means paying the greedy players less so be it. At least neither of the teams we support would then need sugar daddies.

[noel]

This is what happens if we dont sell
Future Financial Position

If the Offer is not accepted by sufficient PNE Shareholders (determined at the discretion of the Offeror) then the Offeror and Guild have indicated that the financial support provided by Guild will be withdrawn and no financial support will be provided by DPNE. The Board believes that without continued financial support from Guild, the Board would almost certainly have to conclude that there is no reasonable prospect of avoiding an insolvent liquidation, in which event the Group would cease to trade and would be forced into some form of insolvency procedure. As PNE Shareholders are already aware, HMRC has issued a winding up petition against the Company's subsidiary for failure to pay PAYE and National Insurance contributions. Without a further injection of capital from Guild the Group has no way to meet this obligation.

In addition, over the last few months football clubs such as Portsmouth FC (through its holding company) and Crystal Palace FC have entered into administration and Chester City FC has entered liquidation. Both Crystal Palace FC and Portsmouth FC will be in the Championship with the Club next season, and the Board believes both are in the process of looking for purchasers to come in to acquire the underlying business from those companies. It is the Board's opinion that there are fewer and fewer genuine third parties looking to acquire football clubs and accordingly there is no certainty that anyone would acquire the underlying business from any administrator of the Group, which could result in the Group ultimately being wound up.

Taken off stock exchange statement regarding PNE

[Spitfire]

But they won`t wind up, will they? Trevor wouldn`t have gone to all this trouble without first sounding out interested parties and laying the foundations of a future administration. As I said earlier, he`s not daft enough to throw £1/2M into a black hole days before the collapse.

[filmoss]

What Trevor Hemmings has done or intends to do is tantamount to theft in my eyes ! Shares reduced to 5p ! The clubs value being what is it 3oo,ooo or there abouts ! The man should be wearing a mask ! This has been coming for a long while now and he has just sat back and let it happen ! Trust me he wont further invest in a football club ! It stinks of a shares take over in the interest of pure profit and if any fans think different then just ask the people who actually really invested in this farce ! TH has screwed you big time !! Oh and Noel how many teams can you name that are self funding ?? I dont think we are doing that bad do you ??

[Spitfire]

If the club was allowed to go into liquidation, EVERYBODY would lose and who would lose the most? Who else has £13.8M tied up in PNE?
OK, Suppose he sees the light and realizes what a bad boy he is and withdraws. What then? Where does that leave us?

[noel]

You have an odd but predictable way of looking at things Phil. Trevor Hemmings is trying to save the club, not rob people. One of the biggest losers is Derek Shaw who had around 30,000 shares he bought at £4 a share, so £120k investment dropped to £1,500. The alternative would have been seeing the club fold and getting nothing.
It could still happen and I just hope TH is sufficient a business man to make the club self sufficient. A gift of £30 million a year and just breaking even isn't doing too well in my eyes by the way.