The Malaysians - it doesn't add up

They were supposed to have information on the club that not even Borley was aware of.

They were supposed to have undertaken a due dilligence that was forensic in its execution.

They knew exactly what a mess the club was in finanically before they put their money in.

They stated they expect a top 2 finish this season

They must have therefore know it would take a damn sight more than £6m to sort everything out and get the club competing for a top two finish. They also must have known that the likes of Guy, Hall and Whitley are never likely to put a penny of their own money in, preferring instead only to invest in the club where it provided them with all that lovely retail land.

So...........

Why haven't the Malaysians bought more shares to take ownership?

Why is money only being drip fed into the club?

Why haven't we signed to address where we know the team to be weak?

Why do they think you can run a business from the other side of the world?

Your latter point is a bit silly, multinational companies work well enough.

The issue is fairly simple - invest small amount, see what shakes out, look for long term return on investment.
Going to take a lot more than expected, other parties aren't contributing, cut losses.

They were supposed to have information on the club that not even Borley was aware of.

They were supposed to have undertaken a due dilligence that was forensic in its execution.

They knew exactly what a mess the club was in finanically before they put their money in.

They stated they expect a top 2 finish this season

They must have therefore know it would take a damn sight more than £6m to sort everything out and get the club competing for a top two finish. They also must have known that the likes of Guy, Hall and Whitley are never likely to put a penny of their own money in, preferring instead only to invest in the club where it provided them with all that lovely retail land.

So...........

Why haven't the Malaysians bought more shares to take ownership?

Why is money only being drip fed into the club?

Why haven't we signed to address where we know the team to be weak?

Why do they think you can run a business from the other side of the world?

if the Malaysians put in enough money to get the debts well under control (which would be a min of £10m more), then they put some creditors who currently have nothing to gain by taking legal action to regain money they are owed into a position where there would be assets in the club after secured creditors are paid and therefore worth claiming further.

Its clever of the Malaysians to try to sort out the debts bit by bit before investing more - it will cost them a lot less in the long run.

They will also be interested to see who else is prepared to put up cash as well.

new signings I'm afraid won't be top priority if this si the case.

I thought the money they have invested is secured in some way(not sure how) but if it goes tits up they lose nothing

Your latter point is a bit silly, multinational companies work well enough.

The issue is fairly simple - invest small amount, see what shakes out, look for long term return on investment.
Going to take a lot more than expected, other parties aren't contributing, cut losses.

But you'd have thought for astute businessmen to invest in a market they admittedly know nothing about, they'd at least have their own people running the show - as opposed to Guy and Hall being allowed to put their own man in?

I thought the money they have invested is secured in some way(not sure how) but if it goes tits up they lose nothing

The money they have put into shares is last in the queue, along with any other shareholders (not to be confused with the secured loans held by PMG ). Even after Langston

Your latter point is a bit silly, multinational companies work well enough.

The issue is fairly simple - invest small amount, see what shakes out, look for long term return on investment.
Going to take a lot more than expected, other parties aren't contributing, cut losses.

But you'd have thought for astute businessmen to invest in a market they admittedly know nothing about, they'd at least have their own people running the show - as opposed to Guy and Hall being allowed to put their own man in?

They may well be happy with him.

Early days yet as well. They've only been shareholders for 5 weeks !

Thanks lawnmower

Thanks lawnmower

[quote="Lawnmower"/quote]


if the Malaysians put in enough money to get the debts well under control (which would be a min of £10m more), then they put some creditors who currently have nothing to gain by taking legal action to regain money they are owed into a position where there would be assets in the club after secured creditors are paid and therefore worth claiming further.

Its clever of the Malaysians to try to sort out the debts bit by bit before investing more - it will cost them a lot less in the long run.

They will also be interested to see who else is prepared to put up cash as well.

new signings I'm afraid won't be top priority if this si the case.[/quote]

I might be a bit thick here, but I thought if you are owed money through a business arrangement (contract) that you are legally entitled to to the payment agreed unless your work was incomplete, you have failed to do what you said, guarantees have not been honoured.

All creditors have to be paid off - they could have avoided significant pay off of creditors if that is what they are about by putting the club into administration. I do not see how a drip feed approach is going to save them anything given the only message we have is that they are serious and here for the long term (Steve Borleys words to me after the infamous shareholders meeting).

Maybe all will be well and they'll pay off a big suite of creditors in July allowing Jones to bring players in. Lets not forget whilst a football club is a business, it actually only works if the team is playing well on the pitch. To do that and make a serious sustained challenge in this division requires £.

[quote="Lawnmower"/quote]


if the Malaysians put in enough money to get the debts well under control (which would be a min of £10m more), then they put some creditors who currently have nothing to gain by taking legal action to regain money they are owed into a position where there would be assets in the club after secured creditors are paid and therefore worth claiming further.

Its clever of the Malaysians to try to sort out the debts bit by bit before investing more - it will cost them a lot less in the long run.

They will also be interested to see who else is prepared to put up cash as well.

new signings I'm afraid won't be top priority if this si the case.[/quote]

I might be a bit thick here, but I thought if you are owed money through a business arrangement (contract) that you are legally entitled to to the payment agreed unless your work was incomplete, you have failed to do what you said, guarantees have not been honoured.

All creditors have to be paid off - they could have avoided significant pay off of creditors if that is what they are about by putting the club into administration. I do not see how a drip feed approach is going to save them anything given the only message we have is that they are serious and here for the long term (Steve Borleys words to me after the infamous shareholders meeting).

Maybe all will be well and they'll pay off a big suite of creditors in July allowing Jones to bring players in. Lets not forget whilst a football club is a business, it actually only works if the team is playing well on the pitch. To do that and make a serious sustained challenge in this division requires £.[/quote]

Its not an easy one to explain.
Some of the creditors are not that straightforward (i.e Sam), others may take shares for debt and defer payments - PMG, Isaacs, Borley. Others are willing to agree deferred payments.
If the Malaysians put in a big lump then they will have a clamour of people wanting to be paid at once, and Sam, PMG etc.. will be wanting their share too.

Why was Vincent Tan quoted as saying the club only had debts of £15m against assets of £30m just after buying in? He must have known the debts were far higher than £15m.

Also his stake is a personal one rather than being part of his Berjaya Corpoartion. Is it possible that we are some kind of bolt hole should things go pear shaped for him in Malaysia?

I know VT appeared before some Government enquiry last year and was accused of telling the President of Malaysia who he wanted appointed as High Court Judges. He was cleared but as they say no smoke without fire and it wouldn't be the first time a rich far eastern businessman has used a football team has an escape route, think Thaksin Shinawatra at Manchester City.