BFC Investment Company

Our shares are worth nothing. Literally nothing. But their investment is substantial. The only way they can make a return on their investment, or even break even, is to stick and hope the current board improve the situation.

 

The injection of £3.2m also appears to resolve the legal dispute between Cryne and the A shareholders. Accounts for Oakwell Holdings showed an outstanding debt of £2.75m due which was in respect of the purchase of the club by the A shareholders.

Total supposition but I would expect to see that the club has a soft debt to Oakwell Holdings now and has the benefit of £3.2m of working capital to see the club through the year.

 

Or they still believe in the process wholeheartedly and are convinced it will work out?

 

Sounds like we're moving forward.

 

If I was Lee or Conman I wouldn't be selling my shares either. What's the point? They wouldn't get back what they cost them. Might as well ride it out and trust those there now that one day your shares will be worth more than they are now.

 

Good point but will they have given a date to actually repay the debt? Say if and when the club are promoted and income increases.

 

This isn't about them selling their shares though, this is about them having to put more money in to keep their level of shareholding.

 

I don’t know is the straight answer but in all likelihood it will be a loan that is repayable when affordable.

The expected losses this year will mean that there is little prospect of that being anytime soon.

 

Thank you for your help, I get the impression that there is a little more calm around the club's finances and ownership at the moment. Hopefully,the current good fiscal discipline will continue for the next few years.

 

Thanks mate, I think I understand.