What happens if Blades Realty goes bust?

[Micalijo]

Just a perfectly genuine question. My views are below. I am very interested in all aspects of insolvency and administration,

As a reminder, SUFC plc own 50% of a property company which to my knoweldge has bank debts of circa £25-£30m.

This company filed its February 2009 accounts late and has various subsidiaries with the property developments and investments contained within them.

My hunch is that cash has been coming out of SUFC Ltd to help fund this company. Nowt wrong with this at all, perfectly commercial and above board but doesn't help SUFC supporters.

My hunch is that the bank debt is secured against the freehold of BDTBL!!! What happens if the bank say enough is enough?

 

[gavtheblade]

Just ask our piggy neighbours.THEY ALWAYS GET OUT OF THE SHIT

 

[DuncDisorderly]

Just a perfectly genuine question. My views are below. I am very interested in all aspects of insolvency and administration,

As a reminder, SUFC plc own 50% of a property company which to my knoweldge has bank debts of circa £25-£30m.

This company filed its February 2009 accounts late and has various subsidiaries with the property developments and investments contained within them.

My hunch is that cash has been coming out of SUFC Ltd to help fund this company. Nowt wrong with this at all, perfectly commercial and above board but doesn't help SUFC supporters.

My hunch is that the bank debt is secured against the freehold of BDTBL!!! What happens if the bank say enough is enough?

I have to challenge you on this Micalijo. You've got so many hunches I think we could get you a job at Notre Dame.

Have you got any evidence for what you are suggesting, any at all? The freehold, the support of Realty from the football club, its financial position??? Anything???

Did you obtain a copy of the late filed accounts so you can illuminate us with them? Or is this more pure speculation and inuendo which no doubt you will turn into fact purely by its frequent repetition..?

 

[SwissBlade]

Just a perfectly genuine question. My views are below. I am very interested in all aspects of insolvency and administration,

As a reminder, SUFC plc own 50% of a property company which to my knoweldge has bank debts of circa £25-£30m.

This company filed its February 2009 accounts late and has various subsidiaries with the property developments and investments contained within them.

My hunch is that cash has been coming out of SUFC Ltd to help fund this company. Nowt wrong with this at all, perfectly commercial and above board but doesn't help SUFC supporters.

My hunch is that the bank debt is secured against the freehold of BDTBL!!! What happens if the bank say enough is enough?

What kind of debt is it? is it a long term loan like a mortgage?

 

[Foxy]

Here's a snippet from 2009's report and accounts:

Blades Realty is the commercial property trading
Group held as a 50% joint venture with
Scarborough Property Company Limited. From
its inception in March 2005 it has it has acquired
a property portfolio of approximately £130
million of commercial, retail and industrial
properties and sold on approximately £70
million of that portfolio.
The recent slow down in the property market
has restricted property trading and has led to
the Group recognising an impairment in the
value of Blades Realty properties of £2.5 million.
This impairment has arisen from market
conditions and is not related to the quality of
the portfolio or its tenants.
Property occupancy continues to be reasonably
strong and the Group is concentrating on
proactive asset management of the portfolio to
look towards an ultimate disposal at an
enhanced value. The portfolio continues to
generate a significant rental interest arbitrage
surplus.
SU plc’s share of profits from Blades Realty was
£1.1m before interest, impairment and taxation
in the year ended June 2009. The loss
attributable to Sheffield United in the year, after
the impairment, was £2.7m.
Blades Realty has provided profits through its
contribution over the last few years which has
helped SU plc build its on field success. Whilst
the property environment has been challenging
over the last two years management have
concentrated on letting void space, and
occupancy and rental income has increased
significantly.

and..

A further loan of £125,000 from Sheffield United plc to Blades Realty Limited, a joint venture company in which Scarborough
Property Company Limited, a company controlled by Kevin McCabe, owns a 50% shareholding. Kevin McCabe is the controlling
related party of the company by virtue of his majority shareholding.

 

[Houso]

I'm angry AND I SHOW THIS BY TYPING IN CAPITALS!!!!!!

 

[sheffielder]

Do people just come on and make shit up.

What is considered a debt these days. Am I fucked because I have a mortgage on one of my houses covered by tenants

Mic, stick to what you know.. fuck all pal and if any of you have any problems in how the clubs is being run.. we look foward to seeing your money £££. Come on, put up or shut up

 

[alcoblade]

So that has cost us £1.6M? Didn't Chengdu blow a further £2.5M? The Hotel is losing money too, I believe. Really not a rosey picture when you factor in the interest on the £50M (or whatever it is) too. No wonder we have no quality up front.....

UTB

---------- Post added at 08:15 PM ---------- Previous post was at 08:14 PM ----------

Do people just come on and make shit up.

What is considered a debt these days. Am I fucked because I have a mortgage on one of my houses covered by tenants

Mic, stick to what you know.. fuck all pal and if any of you have any problems in how the clubs is being run.. we look foward to seeing your money £££. Come on, put up or shut up

But our loans aren't covered by tenants, are they? The businesses we've bought are losing money on top of the debt. Or am I wrong?

If McCabe sells the ground and moves us to Don Valley and we're relegated to the conference, must we dance a jig because we couldn't afford to take over ourselves?

UTB

 

[Micalijo]

I have to challenge you on this Micalijo. You've got so many hunches I think we could get you a job at Notre Dame.

Have you got any evidence for what you are suggesting, any at all? The freehold, the support of Realty from the football club, its financial position??? Anything???

Did you obtain a copy of the late filed accounts so you can illuminate us with them? Or is this more pure speculation and inuendo which no doubt you will turn into fact purely by its frequent repetition..?

Yes please, I'd love to move into teaching, could you? That would be brilliant.

Very harsh this speculation turning into fact business you are on about. I don't state anything like this as fact - although the bank debt/mortgage bit is which is why I don't need to say otherwise!

I've got access to one of those databases which display financial information yes, so the figure is not plucked out of thin air. I don't know if it is bank borrowing or a mortgage. The database say bank debt but the figure is not made up. I'll tell you the precise one tomorrow.

Everything else are hunches like I say. What are your hunches as to what will happen and how this company is funded?

 

[sheffielder]

So that has cost us £1.6M? Didn't Chengdu blow a further £2.5M? The Hotel is losing money too, I believe. Really not a rosey picture when you factor in the interest on the £50M (or whatever it is) too. No wonder we have no quality up front.....

Any other facts you want to make up? umm or whatever it was

 

[Micalijo]

Do people just come on and make shit up.

What is considered a debt these days. Am I fucked because I have a mortgage on one of my houses covered by tenants

Mic, stick to what you know.. fuck all pal and if any of you have any problems in how the clubs is being run.. we look foward to seeing your money £££. Come on, put up or shut up

But what if your tennants go bust or want rent reductions and the values of the properties plummet? You have still borrowed the same an have the same to repay.

I have huge problems with the way the club is run and have no money so can only spout shite on here. I know it's shite but it aint total shite and that is the key thing.

 

[sheffielder]

But our loans aren't covered by tenants, are they? The businesses we've bought are losing money on top of the debt. Or am I wrong?
If McCabe sells the ground and moves us to Don Valley and we're relegated to the conference, must we dance a jig because we couldn't afford to take over ourselves?

UTB

We have on the main bought property and you have been told numerous amounts of times that out assets out weight the debt.

Of course you could listen to people from Beighton for your facts

 

[alcoblade]

But our loans aren't covered by tenants, are they? The businesses we've bought are losing money on top of the debt. Or am I wrong?
If McCabe sells the ground and moves us to Don Valley and we're relegated to the conference, must we dance a jig because we couldn't afford to take over ourselves?

UTB

We have on the main bought property and you have been told numerous amounts of times that out assets out weight the debt.

Of course you could listen to people from Beighton for your facts

I'm just open to discussion about it. It seems your just seething with rage at any criticism of the direction we've taken.

Putting exact figures aside, we have a very large debt costing us a lot to service. We've bought businesses that are losing money on top. Why am I wrong to be concerned at this? Will our assets be liquid enough should cashflow become an issue? What do you see that I don't? You can discuss this you know..........

UTB

---------- Post added at 08:42 PM ---------- Previous post was at 08:40 PM ----------

So that has cost us £1.6M? Didn't Chengdu blow a further £2.5M? The Hotel is losing money too, I believe. Really not a rosey picture when you factor in the interest on the £50M (or whatever it is) too. No wonder we have no quality up front.....

Any other facts you want to make up? umm or whatever it was

Correct the numbers then. They're not too far off I believe.

UTB

 

[Micalijo]

The rents received by tenants is I assume designed to service the debt. Hopefully, the developments are sold at a profit and we repay the bank debt and SUFC plc takes 50% of the profit. That scenario to me, based on my take on the economy at the moment, is not likely to be happening anytime soon. Let's hope we can stick it out and the best case scenario comes true and profits flow into SUFC. That bit from the accounst says £70m of sales but what about profits on those sales? No mention, just some rubbish about rental arbitrage. The bank will I am suggesting have some kind of charge over an asset in addition to the properties within Realty and I am merely asking what that other asset might be, I have given my opinion on what it is.

Not sure what you mean by 'the businesses we've bought are losing money on top of the debt. Or am I wrong?'

 

[broomhillblade]

This guy Arbitrage - is he the next Maltese striker coming to the Lane?

 

[boo radley]

Mic, Have you a mortgage? I have 2repayment ones they are around 25000 each. since the whole world went bust in autumn 2008 my mortgage payments have come down over £100.00 on each mortgage a month. NOW if(and in youtr words a hunch) these debts are mortgages look how interest rates have come down. Now putting tenants in to your properties at the same rate as before autunm 2008 (and people are charging the same, Iwas only talking to 2 people the other day who are loving the recession for this reason). That means that these mortaged debts could now be making a profit.

 

[Micalijo]

A few figures for you.

As at Feb 2009, total assets £47.2m, total liabilities £50.3m.

Turnover in year to Feb 2009 £2.9m. Cost of sales (ie cost to build/acquire these properties that were sold) - £6m. Loss before interest £2.9m. Interest £2.6m.

Bank overdraft £39m

 

[Studge]

Just a perfectly genuine question. My views are below. I am very interested in all aspects of insolvency and administration,

As a reminder, SUFC plc own 50% of a property company which to my knoweldge has bank debts of circa £25-£30m.

This company filed its February 2009 accounts late and has various subsidiaries with the property developments and investments contained within them.

My hunch is that cash has been coming out of SUFC Ltd to help fund this company. Nowt wrong with this at all, perfectly commercial and above board but doesn't help SUFC supporters.

My hunch is that the bank debt is secured against the freehold of BDTBL!!! What happens if the bank say enough is enough?

My hunch is the debt is secured on the properties within the portfilio. Our share of the joint venture is currently showing a los of £1.35M per last accounts which was after an impairment review of the properties

SUFC PLC are owed £4.7M by Blades Reality Limited assuming Scarborough has provided similar funds then there is probably a margin of over £6.5M between the value of the properties and the bank debt so not sure why you think the bank should say enough is enough.

 

[alcoblade]

A few figures for you.

As at Feb 2009, total assets £47.2m, total liabilities £50.3m.

Turnover in year to Feb 2009 £2.9m. Cost of sales (ie cost to build/acquire these properties that were sold) - £6m. Loss before interest £2.9m. Interest £2.6m.

Bank overdraft £39m

But you haven't included decimal points. Everything in the garden is rosey until you provide up to date numbers that recalculate each time you refresh the page.



UTB

 

[Flatulent_Bob]

What happens if Blades Reality goes bust?

Hmmm, I dunno. You average post count/day will go through the floor?

 

[Micalijo]

What happens if Blades Reality goes bust?

Hmmm, I dunno. You average post count/day will go through the floor?

For crying out loud Bob, it is Realty not Reality!! I haven't mentioned it for ages have I?