The elephant in the room following the departures of Paul Murray and Barry Scott is this fanciful debt for equity swap, having walked away, they are due their soft loans back in July as stated by the Evening Times.
In an article by Martin Williams on the 6th of November Sevco’s perilous state was outlined as they hastily put forward something resembling accounts.
It wasn’t good reading for fans of the 6-year-old club, with the cold-shoulder looming, it appears that two of the RRM who have been keeping the Newco afloat want to be paid up.
Some £12.9 million of investor loans are repayable in July, next year and a further £3 million owed by December the same year.
The club took in £5.875 million of additional interest free loans to help boost its working capital in the year to June, 2017 – bringing the total of interest free unsecured loans at that point to £15.9 million. The club also has finance lease agreements totaling £0.5 million.
Now we now know that the 3 million was actually made up by Close Brothers and not by further soft loans, that will be repaid first or they will lose their car park and pie stall against which it is secured.
The 12.9 million which has now blown out to 17 million is the point of interest, as the article states it is due to be repaid in July which is just as the season ticket money comes in.
Loans by directors Douglas Park, John Bennett and Paul Murray were extended during the year for a repayment date of July and December, next year. No interest or fees have been or are to be charged in respect of the facility said the club.
Other loans have come under similar terms from shareholders and new investors, George Taylor, George Letham, Andrew Ross, Barry Scott, Scott Murdoch.
As Sevco fans are pouring in to renew their season tickets the money is going to go into the pockets of those who don’t want to be scarred with the mark of Cain coming from the court of session and Takeover Panel.
The article goes on to explain the intentions to convert debt for equity, this is contingent on 3 things, a fully audited share prospectus being offered, 11 million pounds being placed in an escrow account for the purposes of a share offer and lastly securing a Nomad who will then allow the company to gain a listing on the stock exchange.
It is only then that a share offer can be made and a the loans converted.
King has refused to the point of contempt of court on the prospectus, he has offered a family trust which will not be allowed to deal outside of South Africa and no Nomad will put their reputation on the line for the toxic company.
Which means in all likelihood if the existing and reported intentions of the loan deals are realised, Murray and Scott will be paid up in full this summer.