[Looker-on]

If the liquidator has sold the debt, will our agreement with the debt's new owner appear in any further statements from the liquidator? If so, we may only have to wait until January, I believe.

[Blue5]

Looker-on, on 14 December 2019 - 12:17 PM, said:

If the liquidator has sold the debt, will our agreement with the debt's new owner appear in any further statements from the liquidator? If so, we may only have to wait until January, I believe.

An arrangement was entered into with Manolete Partners Plc for them to acquire a 50% interest in the claim for a nominal cost of £2,000. In return, Manolete will fund all legal costs in pursuit of the claim.

[dim view]

Looker-on, on 14 December 2019 - 12:17 PM, said:

If the liquidator has sold the debt, will our agreement with the debt's new owner appear in any further statements from the liquidator? If so, we may only have to wait until January, I believe.

So the Liquidator only sold half of the debt.

[dart in the crossbar]

Given that any ongoing claim is unlikely to be an attractive proposition to any potential new ownership group, it would be interesting to know whether the arrangement remove any such liability

My reading of the recent posts would suggest not.

Have I missed something?

[Blue5]

I hear Liam Sutcliffe has a new role in football, this time laundering the kit.

This post has been edited by Blue5: 21 December 2019 - 10:43 AM

[moondog]

Blue5, on 21 December 2019 - 10:38 AM, said:

I hear Liam Sutcliffe has a new role in football, this time laundering the kit.

Apparently kitman for Leeds United Women

[calvin plummers socks]

Blimey that's a different role

[Wooden Spoon]

I’d imagine he’d be a dab hand at laundering.

[stainlessstephen]

Dim View

How it works is this.. the Liquidator basically has no funds in the case to issue litigation. Manolete are litigation funders. They paid the Liquidator £2,000 to take an assignment of the chose in action. As the liquidation is a personal insolvency appointment of the Liquidator, has he issued litigation himself, and lost the case, the adverse costs would be made against him personally. Manolete essentially fund the litigation and take the risk if the case is lost. If they win the case, 50% goes to the Liquidator to cover his costs and whatever is left over goes to the creditors. Manolete get the other 50%.

[DIFH]

Blue5, on 21 December 2019 - 10:38 AM, said:

I hear Liam Sutcliffe has a new role in football, this time laundering the kit.

Foot in the door then, guess he'**** the jackpot again.

[DIFH]

I would say that pre sale obstacles are being removed but half a seasons running costs and onward commitments are still big issue.

[dim view]

stainlessstephen, on 22 December 2019 - 07:11 PM, said:

Dim View

How it works is this.. the Liquidator basically has no funds in the case to issue litigation. Manolete are litigation funders. They paid the Liquidator £2,000 to take an assignment of the chose in action. As the liquidation is a personal insolvency appointment of the Liquidator, has he issued litigation himself, and lost the case, the adverse costs would be made against him personally. Manolete essentially fund the litigation and take the risk if the case is lost. If they win the case, 50% goes to the Liquidator to cover his costs and whatever is left over goes to the creditors. Manolete get the other 50%.

yep, got that.

So Manolete won the case and extracted money from CFC. As an expert, perhaps you could ask Carson on the fans' behalf how that happened?

This post has been edited by dim view: 22 December 2019 - 10:27 PM

[Wooden Spoon]

dim view, on 22 December 2019 - 10:26 PM, said:

<br />yep, got that.<br /><br />So Manolete won the case and extracted money from CFC. As an expert, perhaps you could ask Carson on the fans' behalf how that happened?<br />

There’s one man, forget all the current goings on who can answer your questions. Just pin hi down in netherthorpe before a game

[stainlessstephen]

I'd be interested to find out from Carson what, if any, defence there was to the claim. It seems to me when the soccer school went bust, CFC simply ignored the matter, and perhaps just thought it would go away...

[stainlessstephen]

I also think that if Manolete won the case, and obtained judgment, it is inevitable they will seek to enforce it. As with everybody else, the Liquidator and Manolete and their solicitors need to earn a living. If CFC lost, there are also the fees of (typically) London solicitors and Counsel to add on, a £100k claim quite easily becomes £200k and the rest. As we all know, a winding up petition against a football club makes the news very quickly. There is an added danger that other creditors could support the petition i.e. like what Sol has done to Macc Town. This is why it is extremely foolish to ignore matters like this...

[dim view]

stainlessstephen, on 23 December 2019 - 06:09 PM, said:

I also think that if Manolete won the case, and obtained judgment, it is inevitable they will seek to enforce it. As with everybody else, the Liquidator and Manolete and their solicitors need to earn a living. If CFC lost, there are also the fees of (typically) London solicitors and Counsel to add on, a £100k claim quite easily becomes £200k and the rest. As we all know, a winding up petition against a football club makes the news very quickly. There is an added danger that other creditors could support the petition i.e. like what Sol has done to Macc Town. This is why it is extremely foolish to ignore matters like this...

So, if Sutcliffe is himself a creditor he will presumably benefit from the settlement?

My guess is that he will have submitted invoices to CFC on behalf of himself and other members of his staff for various activities, which will not have been checked, let alone paid or balanced out under a contra arrangement, because of a lack of control in the CFC Accounts department.

Carson has intimated that the matter is now closed. Perhaps he can tell the DT the full story.

[stainlessstephen]

The Liquidator's fees, solicitors, and Counsel get paid in a prescribed order of priority, then the preferential creditors (arrears of wages, holiday pay, and any subrogated award from the Redundancy Fund). The unsecured creditors come last. If/when there is enough to pay to the creditors, the Liquidator must check each claim that they are bona fide. Don't forget if the Liquidator wins, Manolete get dibs on 50% of any settlement. I think it's likely unsecured creditors will receive nothing.

If there is no money to settle the judgment, if made, its not worth the paper it's printed on. Having said that, Manolete will only take a flyer on cases if they think there is a good chance of success. Here, the target (CFC), is still a high profile name in the overall scheme of things.

[dim view]

stainlessstephen, on 23 December 2019 - 07:34 PM, said:

Here, the target (CFC), is still a high profile name in the overall scheme of things.

So, we've got a high profile football club and a small independent soccer school. Don't you find the direction of nett cash flow to be odd? What could CFC have possibly been paying for?

Goalkeeper coaching from Sutcliffe?
Use of school training pitches?

[stainlessstephen]

It always comes out in the wash...

[dim view]

Looker-on, on 14 December 2019 - 12:17 PM, said:

If the liquidator has sold the debt, will our agreement with the debt's new owner appear in any further statements from the liquidator? If so, we may only have to wait until January, I believe.

any news?