Oakwell Holdings Limited v BFC Investment Company Limited

They're creepy and they're kooky...

 

Mysterious and spooky...

 

Forbes says the wealth is with the father and family so I’m happy our lad has some fair financial backing .

 

This is the Forbes top 100 of richest Indians in 2017. Daddy comes in at No.29 with $4.75 billion and no other family members are mentioned, No.100 having $1.46 billion.

https://www.news18.com/news/busines...t-indians-forbes-india-rich-list-2017-1537043

 

Club have released a statement on this matter

 

Thought I read somewhere that he is not the son in this article but an investment banker

 

Who do you think you are kidding Mr Fritzl

 

And how much of his own money has he invested into the HK investment vehicle? And how was the acquisition funded? Who have placed monies into that investment vehicle?

The simple facts remain. As they have done since the day of their acquisition. Every Barnsley fan should be worried that our directors are taking legal action against each other.

 

On December 21, 2017, new investors purchased 80% of Barnsley Football Club from the Cryne Family for £ 8 million. A new holding company called BFC Investment Company Ltd was created to hold 100% of Barnsley Football Club (“Club”). As part of this investment, the Club also obtained an option to acquire 50% of Oakwell Stadium from the Cryne Family ("Option"). On January 22, 2020, the Club exercised the Option right and its investors deposited a significant amount of new capital in escrow as part of completing the transaction and to make a new significant investment in the Club in the following week.

On January 27, 2020 however, the Club, for the first time, was informed by the Cryne Family that another party had sought to enforce their own option to purchase Oakwell, which had been in existence for some time and long before the investment in 2017. This came as a shock to the Club as the purchase of Oakwell formed a significant part of the original investment and was vital to ensuring the long-term stability of the Club. Furthermore, the Option was granted in the context of incentive consideration being paid to the Cryne Family, of which £750,000 was paid to the Cryne Family through January 27th. The Club would never have agreed to the incentive consideration being payable to the Cryne Family, if the purchase of 50% of Oakwell could not be achieved.

Nevertheless, the Club has made a variety of proposals to the Cryne Family to resolve these issues in the last six months that would at the foremost protect the interests of the Club. These proposals were rejected out of hand and any settlement discussions proved fruitless. On August 12, 2020, the Cryne Family filed a claim of £ 2.75 million against the Club.

The Club will vigorously defend the claims, and its legitimate interests in respect of the Option and intend to aggressively prosecute the Club’s own claims by whatever means necessary and in the strongest possible terms. The Club has had a hard battle on and off the field in the last six months. It has fought through COVID-19, governance issues in the EFL and tough opponents on the field to remain in the Championship.

The Club will continue to fight these battles in the interests of its supporters and its long-term future by all means necessary. Since investing in the Club in 2017, the new investors have not withdrawn £1 from the Club and received no compensation as Board members. The Club want to reassure our supporters that we will fight this litigation and continue to grow the Club in a proper way.

 

So who has first dibs on the 50% of Oakwell then?? Council??

 

"On December 21, 2017, new investors purchased 80% of Barnsley Football Club from the Cryne Family for £ 8 million. A new holding company called BFC Investment Company Ltd was created to hold 100% of Barnsley Football Club (“Club”). As part of this investment, the Club also obtained an option to acquire 50% of Oakwell Stadium from the Cryne Family ("Option"). On January 22, 2020, the Club exercised the Option right and its investors deposited a significant amount of new capital in escrow as part of completing the transaction and to make a new significant investment in the Club in the following week."

That seems a very strange way to phrase that. They state in the first para that BFC investment co was the vehicle for buying Barnsley FC (the club). But then explicitly and nebulously state investors made a deposit of funds when exercising the option.

Who are these investors and are the separate from the directors involved at oakwell? Verisimilitude through opacity.

 

It’s making rwference to the new investors at the start of the paragraph.

 

I can't imagine a member of the Cryne family promising an organisation something, making a considerable amount of money on the strength of that promise, and then breaking that promise.

Just not believeable.

 

The figure of £2.75m is a very specific one. Seems to be the balance of funds to buy the club and the mystical £750k.

By the way.... "incentive consideration" (relating to the £750k)..... that sounds... well... make your own minds up as to what it sounds like.

 

£2.75m? We'll probably offer them Cauley Woodrow, on the condition that they get a sell on fee.

 

When a defence is filed the claim form, particulars of claim and defence become available to non-parties to the litigation if anyone wants to write to the Court and request them (I believe you have to pay photocopying charges).

As for when that will be, the Cryne entity will have 4 months to serve the Claim after issuing it (however they do not have to wait 4 months and may have requested that the Court serve it immediately). Once it has been served the Club will have 14 days to file a defence (or 28 days if they file an initial acknowledgment of service).

So at some point we will be able to find out exactly what the arguments are.

 

It;s the Crynes investment vehicle taking action against HK investment vehicle.

 

Reading the Club Statement, I find the behaviour of the Cryne Family and their advisers, somewhat "shoddy ".
1) Shouldn't it have been in the Sale agreements and registered with Companies house, the mysterious 3rd Party, who has a option to purchass 50% of the Oakwell Stadia and land?
2. Would it not been professional and legal to inform the Council and BFC of your intention to sell to this 3rd Party and that you had agreed to do so after receiving £750,000?
3. Why refuse to negotiate?
4. Why sue for 2.75 million pounds specifically?
5. My understanding of the Sale of Barnsley FC, gave 20% of ownership for FREE to Mr James Cryne. I could be wrong.
6. Why are the Cryne Family and their advisers so eager to dispose of their 50% ownership of the Stadium and land? Yet retain an interest in the ownership of the Club and the continued financial investment in the testing of a Recruitment Model,devised by James Cryne.
I hope the Club wins this "Speculative " motion brought against them by the Cryne's. I for one will be happy when they are no longer involved in the club. Not a popular view I know.

 

Sorry yeah, wrong way round. I'll edit it

 

So reading through this am I right in thinking the Crynes are taking the investment company to court as they owe 2.75 million from the purchase of the club? However the investment company say it has not payed because as part of the deal they had the option to buy the ground from the Crynes which hasn’t gone through?

If so does it look like the investors banked on taking loans against the ground and assets to pay this money?