Addtional MSD loan

[Kit Kat Chunky]

The MSD deal is likely as a result of WBA entering into a period of exclusivity with one of the interested parties. I can't see MSD issuing more funding without the potential sale being at a pretty advanced stage. One would assume they're in the throes of the final due diligence process. If that is the case, I'd be sure this strategy would have been agreed in principle with any new owners. Yes it's a gamble on the part of the club, but I'm sure they wouldn't be entering into this new deal if no buyer was on the horizon. I'm not sure MSD would extend the deal without knowledge of the process being advanced.

That is, I’m afraid, all wishful thinking.   As I’ve suggested above, we borrowed the extra money now, as we are clearly broke.  

MSD could have approved a facility for further borrowing and drawn down taken at a later date if we weren’t strapped for cash.  But clearly we are and it has nothing to do with an imminent takeover, it’s about trying to keep the club afloat for as long as possible.

I'm not so sure FF. What would happen if Albion rang MSD saying we won't have enough to pay you in January, can we borrow some more? Wouldn't they simply say "Sell some players and give us our dough"?
Disclaimer. T. Joad. Drives a van. On the tools. Nowt to do with finance.

This. No lender would enter an open ended agreement with no prospect of repayment.

[Johnny akes]

The MSD deal is likely as a result of WBA entering into a period of exclusivity with one of the interested parties. I can't see MSD issuing more funding without the potential sale being at a pretty advanced stage. One would assume they're in the throes of the final due diligence process. If that is the case, I'd be sure this strategy would have been agreed in principle with any new owners. Yes it's a gamble on the part of the club, but I'm sure they wouldn't be entering into this new deal if no buyer was on the horizon. I'm not sure MSD would extend the deal without knowledge of the process being advanced.

That is, I’m afraid, all wishful thinking.   As I’ve suggested above, we borrowed the extra money now, as we are clearly broke.  

MSD could have approved a facility for further borrowing and drawn down taken at a later date if we weren’t strapped for cash.  But clearly we are and it has nothing to do with an imminent takeover, it’s about trying to keep the club afloat for as long as possible.

I'm not so sure FF. What would happen if Albion rang MSD saying we won't have enough to pay you in January, can we borrow some more? Wouldn't they simply say "Sell some players and give us our dough"?
Disclaimer. T. Joad. Drives a van. On the tools. Nowt to do with finance.

What you do for a job is irrelevant. At the end of the day, all of us on here love Albion (apart from the Stokie and KRO ).

MSD would have looked at the securities they currently hold against the club and the amount outstanding on the £20m initial loan and the further amount requested and then decided whether to lend the extra funds or not.

Basically, MSD believe if the loans aren't repaid by the club, they will legally own more than enough assets of the club to sell, to pay off the amount of loans (plus interest) the club owes them.

Same as when a finance company repossess a house for default of a mortgage and it goes for auction.  They don't care how much it goes for, as long as they aren't left financially out of pocket.

Lenders don’t as a rule provide funding based primarily on the value of their security, they look first & foremost at the borrower’s ability to repay to schedule. MSD’s model may be different as the football industry is different to any other, but disposal of assets is usually seen as the final option due to the drawn-out and complex issues involved.

I’m hopeful that this is a sign that other parties are involved providing MSD with the necessary comfort that payment will be forthcoming.

[Fulham Fallout]

<waits for Duffer’s Finance professional input>.


I suspect I might be waiting along time

[rsbaggy2]

<waits for Duffer’s Finance professional input>.


I suspect I might be waiting along time

Maybe he's busy analysing the merits of Home Alone as a Christmas film!