So what's the thinking on the Bond?

[Heathen]

June 30 is less that 48 hrs off and no news. SE will need a statement by 07.00 on the 30th.

Educated guesses as to what might happen?

(other than cue meltdown on the DW site)

[Neils]

Mayhem if there is failure to cough up. Serious questions if this late payment materialises will still need to be asked by the authorities.  I am assuming the main company cannot speak out ahead of whatever happens due to all the City rules and Regs. However they need to dispel all the rumours etc as soon as they are allowed to do so.

[NellyWellyWaspy]

I am not really thinking about it. It will get sorted this week, or it won't. It will eventually geet sorted, or it won't.

Anyway it gets spinned, it won't affect me in any material way.

[InBetweenWasp]

Though I think it will be sorted in the long run, I don't think we'll see repayment tomorrow.  No inside information to suggest that's the case, just a gut feel/opinion.

I suspect the rumours about dilapidations are true but not the £25m that is also being bandied about.  I also suspect that the £13m grant that is being asked for is to cover the dilapidations and is needed to also get the valuation required for HSBC and the other lenders to approve the transfer of funds to repay the Bond.

Why would, or should CCC effectively grant the money for dilapidations? Could be a number of reasons:

- They are liable as the freeholders of the Stadium (although typically it's the leaseholder responsible for repairs)
- They are liable as they originally built the Stadium
- Who is going to take over the stadium with the repairs required? - You can be sure that SISU wouldn't unless the stadium was effectively sold for nothing knowing they have to invest millions to bring it into a good state, but that wouldn't repay bondholders who take ownership of the stadium in the event of a default
- Avoid disruption to the local economy, job market and any events that have been booked but not might be able to held at full/normal capacity (which in turn leads to economic impacts on the area)

[Heathen]

It is these guys who give the grants.

https://www.wmca.org.uk/

[Neils]

It is these guys who give the grants.

https://www.wmca.org.uk/

Which is why I can't see it having anything to do with the Bond - more likely building development (Hotel?) or infrastructure.

[Heathen]

It is these guys who give the grants.

https://www.wmca.org.uk/

Which is why I can't see it having anything to do with the Bond - more likely building development (Hotel?) or infrastructure.

It's not. WMCA does not exist to pay off debt!!!

[InBetweenWasp]

My train of thought wasn't that the grant would go to repaying the Bond - At least not directly.

That it would go to 'making the stadium good' if repairs are required.  That allows the borrowing of funds to repay the bond to be released.

Of course, it could be me putting 2+2 together and making 5 - There's still no information on what the Grant Application is for nor whether the rumoured dilapidations are even a thing or not.

If it's totally unrelated and going towards site development of sorts, then great.

[Heathen]

From the DW site :

Re: Message from Stephen Vaughan addressing some supporters concerns new
Wilberforce 30 June, 2022 07:14

It's been delisted (which is itself an outrage) so I'm not sure what the obligations to the exchange are.

Can someone who understands how these things work, please explain what this means?

[Heathen]

Found this :

 What Is Delisting?

Delisting is the removal of a listed security from a stock exchange. The delisting of a security can be voluntary or involuntary and usually results when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or seeks to become private.

[Vespula Vulgaris]

Seeing as the bond has officially matured I can't see that delisting is an issue. It doesn't exist in terms of trade-ability and so there is no reason for it to continue to be listed on the stock exchange.  The question is whether it's going to be repaid.

If it isn't then it will not only damage the company's credit rating, but also their reputation with an awful lot of people.

I guess we find out today.

[Shugs]

Bond repayment extended out to 31st August.

[Neils]

Bond repayment extended out to 31st August.

No matter the reasoning - valid or not - this stinks.

[Heathen]

Which rather begs the question - why has it been delisted?

[Shugs]

I think it’s been de-listed as it can’t be traded as it’s matured. That’s different to it being repaid. Those holding bonds will get interest payments until 31st Aug. I don’t think it’s quite as bad as all that. It’s a mess of a financial world at the moment - due diligence is more stringent. It could be that the conversation has gone something like HSBC - we won’t lend against the CBS until xyz are done. Wasps to WMCA - can you give us cash to do xyz. Waiting a response from WMCA I would think is where we’re at. I still think it will get done albeit with some nervous bond holders.