because he is also a major creditor

and therefore can dictate the acceptance of his 'new' offer to buy back the company.

Its a great scam.

You buy somehting for 100 million, 75 from you and 25 from others

You declare the company bankrupt and offer to buy back the debt free company for 1 pound.

As you are the major creditor your offer gets accepted.

You pay off the creditors pro rata and dismiss the debts with the proceeds of the sale (£1)

You gain a company worth 100 million and have paid on 70 million

Others lose 25 million

Deal or no deal?

they should modify the law to prevent bankrupt board members holding office for three years.

Posted By: Army Boy on May 5th 2007 at 14:45:54

Message Thread

Why is ken bates allowed to put leeds into administration (Other Football) - phrankin, May 5, 13:38:57
- because he is also a major creditor (Other Football) - Army Boy, May 5, 14:45:54
  - or restrict the purchase of assets of a company by directors of the company (Other Football) - Commisar_Canary, May 5, 15:45:29
    - what I don't get (Other Football) - phrankin, May 5, 15:56:21
      - Simply that the administrators have full power to do what they like (Other Football) - BerlinCanary, May 5, 16:33:59
  - I think they do already; but this is not bankruptcy - it's administration. (Other Football) - BerlinCanary, May 5, 14:51:51
    - I look forward to seeing what the IR and Customs do about the Leeds situation (n/m) (Other Football) - Commisar_Canary, May 5, 15:46:35
- Its Not Football, Its Business Law... (Other Football) - Martin Peters, May 5, 14:09:11

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