Now now Sam don’t let your bitterness creep in - it was only a lighthearted comment. I should ask - what do you think the natural consequence is if Wasps did go pop. Your owners don’t want the stadium. The council don’t. You’d be back on the phone to Northampton/Birmingham/Burton.
If it is just because of the debt burden, as opposed to be able to fund the daily operations, there's a good chance the administrator sells the club for a price that means it can continue as a going concern and the secured creditors walk away with whatever they can. This has to be a better deal than liquidating the assets because, to be brutal, who is going to buy the players at "market value" and what is the Wasps brand worth as a standalone entity?
I’m not sure there would be a lot left after the bond holders have taken what was offers as security - basically everything including proceeds from sale of P shares.
Taken from the bonds prospectus -
The security includes a legal mortgage (explained in more detail below) granted by ACL and ACL2006 over their title to the Arena in Coventry, a mortgage over the whole share capital of ACL, a mortgage over the whole share capital of ACL2006, fixed charges over insurance policies held by ACL and ACL2006 in respect of the Arena, a fixed charge over a cash account (described in more detail below) (the “Interest Service Reserve Account”) to be opened by the Issuer on or prior to the Issue Date, and a floating charge over all of the other undertaking and assets, both present and future, of each of the Issuer, the Guarantors and ACL2006. In addition, if the “P-Shares” (as defined below), held by Wasps Holdings are ever sold prior to the maturity date of the Bonds, then the cash proceeds of the sale at such time are required to be paid into a designated bank account opened by Wasps Holdings with the Account Bank and secured by way of a fixed charge for the benefit of the Trustee, the paying agents under the Bonds, the Account Bank and the Bondholders. For the avoidance of doubt, the Trustee is not permitted to force the sale of the P-Shares (even following an event of default (as described under the heading “Events of Default” below)), because the P-Shares themselves do not form part of the secured assets – only the proceeds of their sale would form part of the secured assets. If the P-Shares are never sold by Wasps Holdings during the life of the Bonds, Wasps Holdings will not receive cash purchase monies in respect of them during the life of the Bonds.
Always a Wasp