Could we be further in debt?

Below is an extract taken from a feature from Wales on line. It concerns me that the money invested by the malaysions is actually a loan.Is'nt this going down the same path as the one Haman sent us down, if they were to pull out we would be further in debt because we would have to pay back the loan and surely that would definately finish us of. Your thoughts please as I am quite worried.


Dato Chan and Vincent Tan have already invested more than £10m into City, much of that in loans, and they own 30-plus per cent of the club

The loans will be turned into shares at some point in the near future. Very clever by the malaysians as they will end up paying a pittance for a debt free club in the end. Have faith!!!

We are certainly indebted to our Malaysian friends, that's for sure.

Mate, every Club with a rich owner would be fucked if they decided to
walk out. You can be damn sure that Roman Abramovich isnt signing
all the cheques down at Chelsea with his own name, and if he left I
imagine Chelsea would suddenly find out they owed 'someone' (him)
millions of pounds!

Well it was obvious they werent just going to give us they money.

To be honest the debt of the club has become such a mess that i've stopped caring

It appears that TG is the man putting a shed load of cash in ATM. There are 2 new mortgages lodged against the club both in his name, one dated 2nd August the other 4th August.

At a guess I would say that might have something to do with the HMRC bill and the Charlton debt which were paid off around then so the embargo could be lifted.

It appears that TG is the man putting a shed load of cash in ATM. There are 2 new mortgages lodged against the club both in his name, one dated 2nd August the other 4th August.

At a guess I would say that might have something to do with the HMRC bill and the Charlton debt which were paid off around then so the embargo could be lifted.

Even if some of the debt is converted into shares (which the current one could well be) - about £4m in loans from VTat the mo according to Echo reports, and £5.2m of shares available, then whatever gets paid off to PMg and SAm etc.. is likely to only be replaced by loans. The good thing is though, they will only get that money back if we are successful

Yerbut to be honest I would prefer the malaysians to sort out our debts and us owe them than owing every man and his dog because of ridsdale..

Good thing they have no reason to walk out.

Corr!! There are some naive people on this site....

The Malaysians have just landed, have sorted out the immediate mess, paid the tax man (for now), paid the staff, paid off most of the outstanding debts to local companies and invested in new players (albeit via the 'loan' market at the moment.

They're even talking of building the upper tier to create a 35,ooo seater stadium (so that the bandwagon jumpers and local Man Utd 'supporters' clubs can see their superficial heroes next year....

FFS, give them a chance....they're probably still suffering from jet lag (although that migh be the best time to 'hit' them!!)

It appears that TG is the man putting a shed load of cash in ATM. There are 2 new mortgages lodged against the club both in his name, one dated 2nd August the other 4th August.

At a guess I would say that might have something to do with the HMRC bill and the Charlton debt which were paid off around then so the embargo could be lifted.

Even if some of the debt is converted into shares (which the current one could well be) - about £4m in loans from VTat the mo according to Echo reports, and £5.2m of shares available, then whatever gets paid off to PMg and SAm etc.. is likely to only be replaced by loans. The good thing is though, they will only get that money back if we are successful

That is certainly one option Mower but another is to have a further share issue once the Malaysians are fully in control and then turn any outstanding debt into equity.

The recent buy out valued the club at £18m which is well below market value for a debt free Championship club with a brand new 35,000 stadium, valuable playing staff and 17,000 season ticket holders.

Therefore if the Malaysians issued new shares valuing the club at say £35m they should be enough scope to convert all debts into equity.

I am confident we will sell out a 35,000 stadium if he reach the premier and keep a hold there. Cardiff City will become a stand point for all things Welsh within a major sport. Just look how the rugby internationals stand us as a country. Consistant premier football and we will see of the rugby lot.

The Malaysians can see this and I believe that is part of the driving force. The club will become sustainable leaving the Malaysians to carry on their other business whatever that is, most likely some online betting saga.

It appears that TG is the man putting a shed load of cash in ATM. There are 2 new mortgages lodged against the club both in his name, one dated 2nd August the other 4th August.

At a guess I would say that might have something to do with the HMRC bill and the Charlton debt which were paid off around then so the embargo could be lifted.

Even if some of the debt is converted into shares (which the current one could well be) - about £4m in loans from VTat the mo according to Echo reports, and £5.2m of shares available, then whatever gets paid off to PMg and SAm etc.. is likely to only be replaced by loans. The good thing is though, they will only get that money back if we are successful

That is certainly one option Mower but another is to have a further share issue once the Malaysians are fully in control and then turn any outstanding debt into equity.

The recent buy out valued the club at £18m which is well below market value for a debt free Championship club with a brand new 35,000 stadium, valuable playing staff and 17,000 season ticket holders.

Therefore if the Malaysians issued new shares valuing the club at say £35m they should be enough scope to convert all debts into equity.

I think tat would all depend on how they view the future.
If they are looking to buid and sell-on then maybe your option will be taken up. The majority of clubs though use the 'loan' method as they can take the money out easily if/when they want to.

It also depends on their own taxation situation

And also who else wants to get involved and the position of the other current shareholders - CCFC has a pretty complicated ownership set-up.

Safe to say though, things are getting brighter by the week. It would be a lovely Xmas present to see the Langston debt sorted as its a nasty black cloud hanging over us until its cleared completely.