Its not b***ocks

Arguably both statements are correct.

To take a controlling stake in the Club then Cullum would have to be able to demonstrate that he is potentially worth ?56m but the reality is:

1. He should be able to reach agreement with the banks over the debt - whether by simply agreeing with them that he will meet the existing payment programme or by re-financing. I would imagine a man of his means can lay his hands on a ?16m loan with relative ease if required.

2. I would hope that if they remained on the board our lifelong fan directors might not immediately demand repayment of their loans although it appears they are entitled to.

3. Re the shares yes i think technically he is required to offer to buy all of the shares and therefore needs to show the finance is in place if necessary. this is where yeung has fallen down and Brum because he doesn't have the finance. However that is not to say that he has to actually buy the shares and presumably he would look to reach agreeement with the other major shareholders that they would not accept his offer meaning the actual amount he has to pay out is well below ?16m.

Thats how I see it anyway but i am no corporate law expert!

Posted By: Jim on July 1st 2008 at 09:18:08


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