Owl Stork

I read somewhere that they have previous experience in football related administration, so might have been recommended by his solicitors for the best outcome.

Correct. The CVA could have been set up when the winding up order was served. It wasn't as there weren't any funds to back a credible repayment plan and the business wasn't sustainable. Admin was the only option and as a result the directors have no further involvement, except as creditors.

Fanstorm Friday?

To the tune of Miss American Pie?

Realised that we haven't come up with a suitable name yet for the momentous events that happened last Friday 24th October. Surely it's up there with Boxing Day Massacre, Hillsborough Miracle and Mind the Gap? Come on creative Owls. Let loose with your ideas and have a giggle at own late owner's expense.

He's the right fit for us at this time. A good man manger with a level head. That's what this patched together team needs. Maybe see what he can do from January onwards if/when we get some new additions. I don't see any point bringing a new manager in otherwise. Come the summer, it's his to keep if the results are promising. If not, the owners will be judged on their ability to read the situation and appoint a manager who can move us forward.

Let him have it. He'll squander it on some daft scheme and lose it anyway.

According to the administrators, the new owner will have to negotiate with the EFL, so probably remain the same until January.

D-throned

It's all semantics now. I'm not sure of the exact arrangement, but only banks, finance companies etc. can be secured creditors. Any debt from SWFC to Sheffield 3 will be an unsecured debt. If the debt was funded by loans, the financer will recover it through the admin process. If not, Sheffield 3 is just an unsecured creditor. Let's say admin pay them 25% - 15 million, the loan from NAP will be deducted from it and there'll be 10 million left for other creditors, plus the proceeds of any sale of the stadium. We could assume 25 million in the pot. Chansiri would likely get 10-20% of that, but remember that SWFC now has 15 million less in funds, so his share of SWFC is less as a consequence. Realistically, he'll get a pittance from the club and an embarrassing return from his involvement in Sheffield 3. I'd assume that's more or less how it would work.

The admin are dealing with the ground and swfc together. The lender is the secured creditor with a charge on the stadium. They will recover a fair portion of their outlay through the administration process. Chansiri is the director of Sheffield 3 and so is an unsecured creditor and behind other creditors in the pecking order. He'll get a far smaller percentage, assuming there is some money left over. Its not uncommon for directors to lose everything.

Yeah, not just removing them, but launching them down the stand with utter contempt. Very satisfying.

He's a director. Back of the pack.

Also, directors are last in the priority for debt repayment during admin. Typically, they end up with nothing.

We are all bad customers aren't we?

Nope. No control over anything now. He gets what he gets. Crumbs.

Sheffield 3 also placed in admin. Hallelujah! We are back baby! A great day for all Wednesday fans. Have a great evening!

Admin is an attempt to save the business. The proceeds of a sale are used to pay off a part of debts and cover ongoing costs of running the business, which hopefully will prevent any asset stripping. If there is anything left, I think Chansiri might get a portion, but I'm not certain on that.

New Avenue have no connection to SWFC only Sheffield 3. Led to believe they are calling in the loan on the stadium though. HMRCs winding up petition no doubt forced Chansiri/SWFC into Admin, unless a creditor beat him to it. Only realistic way to prevent liquidation if you can't pay the debt.

And once the WUP is advertised, none of the above can put us into administration, only the appointed insolvency practitioner.

The only way we won't, once the WUP has been advertised is if the debt is paid by Chansiri. There might be a possibility of a last minute buy out deal, but admin is not something that HMRC allow. Once appointed, an insolvency practitioner can legally enter into administration, which puts a hold on the winding-up process, but there is no guarantee.

HMRC will serve a winding up order. We won't be relegated. We'll be liquidated.

Once a WUP is active and advertised, you can't enter administration, so if it's going to happen, it has to be dealt with urgently.

He's backed into a corner. HMRC know he can't pay and also know that the situation won't improve, whilever he's in charge, due to the boycotts. If the club is liquidated, he has no revenue for Sheffield 3 and so he'll lose the stadium too (unless a last minute buyer comes in to pay off HMRC). He can't risk that, so administration or immediate sale are his only options to pay off the debts. He might keep the stadium, but there are ways around that if he tries to play hard ball with rent.

As far as Im aware, with the WUP imminent, it can only be stopped by paying the debt, negotiating a debt repayment plan or entering admin before it's served. Unless an unsecured creditor is well advanced with a court petition, I can only assume that Chansiri is incapable of meeting the first two scenarios and has finally accepted that admin is the only way out for him if he wants to recover any of his loan money.