Just for clarification, where does the debt lay? All of it with the proposed new rugby entity?
The answer is very complicated.
Split in the first instance between ACL and WHL.
WHL had no real assets, so probably had no secured (referential) creditors.
ACL had the arena, so any secured or preferential debt is likely there, such as the bondholders and DCMS.
Preferential and secured creditors tend to be ranked in an order, in this case the bondholders likely first. There is unlikely to be enough to pay all of these claims, so the balance owing becomes unsecured (and not paid).
ACL is not the rugby club, so has no Rugby creditors.
WHL has Rugby creditors. The new owners will need to make them 'good' (no worse off), so those creditors will be expected to minimise their losses (like getting another job), claiming what they are due from the government, claiming in the administration. That could take years to sort (the RFU regulations say they have to be made good, but not how quickly).
ACL and WHL have unsecured creditors. Highly unlikely to get their money back. Such as the shareholders (like Derek). How much of the £100m is in this pile? I would be surprised if, between them, ACL and WHL leave less than £70m owing to unsecured creditors. In effect, written off. A lot of it will be owed to Derek, the bondholders, DCMS, HMRC. The various government debts are likely to add up to the biggest sum.
Topic: Debt (Read 700 times)
Always a Wasp