Wasps 22 Discussion Threads

[bigfish1] 11/8/2022 14:27

Barondene, the trustee has a first charge over the arena and other assets. They can seize it at their discretion after a default event, which has happened. Currently they are choosing not to, presumably waiting to see what Wasps come back with.

[cc2014] 11/8/2022 14:17

I'm wondering if some who think this is going to get resolved easily have read Wasps Holdings accounts?

The last set of accounts show an accumulated loss of £85m.

They've also got no money and are running on the support of Mr. Richardson.

The pitch isn't being used as it's rumoured no-one will do it except for cash up front, player recruitment is frozen, staff recruitment has been frozen for some time.


As far as I can see Wasps can't pay any interest on the bond unless Richardson provides the money and as has been pointed out before his wealth is more limited than many who buy sports clubs. It would appear looking in from the outside he isn't prepared to put the money in to finance the "cash up front" requirements the club is now facing, else the pitch would already be sorted.

The security on the bond is the stadium.


Also, just out of interest. IIRC £10m out of the £35m bond was used to repay Richardson debt from the club.

[jgh03] 11/8/2022 14:12

Rowley, the question you pose has been answered for me by bigfish.

I'll read and consider the consent solicitation when it is put to us but I suspect I'm likely to vote for "None of the above", and let the trustees initiate the sale of the arena.

[barondene] 11/8/2022 13:59

If you are going that route you might as well vote for a Receiver who can control the stadium now

[bigfish1] 11/8/2022 13:58

My idea of a very convincing plan would be hearing a detailed and convincing plan for refinancing the bond and returning our money, probably within around 6 weeks maximum as long as there are good reasons for it to take that long. I do not want to lend my money to an insolvent company with massive debts for any amount of interest. A bird in the hand is worth 9% interest in the bush.

[pusb] 11/8/2022 13:36

Rowley142 - 6 months? By the time the solicitation process has concluded that would constitute 12 months from original due date.

[rowley142] 11/8/2022 13:05

Re jgh03. What is a 'very convincing plan'? I suggest we give the Issuer some advance warning to try to make sure it does put up an acceptable plan. If not 2 years what maximum period would you suggest?

[jgh03] 11/8/2022 12:48

It may not be easy for bondholders to agree on minimum requirements. For example, I have no wish to see a 2 year extension and see this as merely kicking the can down the road. I agree with bigfish1, post 792 "unless they come up with a very convincing plan for repayment in a fairly short space of time, I am for selling the arena/liquidation". MY money is tied up and we are past the date when they said they would repay it.

[rowley142] 11/8/2022 11:59

On 13 May Wasps Finance stated that ‘we have agreed the terms with HSBC’ but on 29 July this changed to ‘not yet been able to agree final terms’. It now seeks that an extension for the Bonds ‘to allow time for the completion of the refinancing’.
I suggest that we try to open a dialogue with Wasps Finance to make it clear that bondholders are not going to agree to an extension except with the following minimum requirements:
1. Clear explanation of why the terms of the refinancing by HSBC has not been achieved after 2 attempts
2. What firm proposals does WF have for refinance of the bonds and some evidence that these are realistic
3. A limited time period for the extension – a maximum of 2 years
4. A higher interest rate on the bonds in the meantime – a minimum of 8%
5. Relisting of the bonds on the London Stock Exchange.
I suggest that if such terms are not included in the consent solicitation that we are all wasting our time and we should approach the Trustee with a view to realising our security. If you agree I suggest that one of our number is agreed to approach WF on behalf of the rest of us.
Separately, can we approach the Trustee with a view to obtaining a valuation of the arena on a fire sale basis?

[dandigirl] 11/8/2022 09:40

big fish1: Your 792. I agree.

[bigfish1] 11/8/2022 07:55

I don't think that would help because the Trustee has a first charge (mortgage) over the arena and a few other assets which they can seize whenever they feel it's appropriate to do so, without having to go to court. So we have to go through them.

This is the charge document:

[barondene] 10/8/2022 20:38

@coley88

Can I suggest you need to find a no win no fee IP

This is especially so if it is WF Plc only CVA

Not advice just a suggestion

[bigfish1] 10/8/2022 19:42

Not yet, hopefully soon.

[coley88] 10/8/2022 14:05

We should all get together and foreclose - Anyone have the contact details of the Bond Trustee

[coley88] 10/8/2022 14:02

We should all get together and foreclose - Anyone have the contact details of the Bond Trustee

[pusb] 09/8/2022 16:45

I wonder just how hard they are trying to get the bonds relisted. I will be surprised if they are before the consent solicitation outcome is known.

[dandigirl] 09/8/2022 15:21

CB: Seriously? Wonder how many with £7 plus available would look to these boards for an emerging buying opportunity. Hmmm.

And whilst I wouldn't want to give your comment any credence, just how long would the price stay at 20p after someone started buying in volume?

[cesareborgia] 09/8/2022 14:58

If the relisted price really was 20p someone with £7 million to spare could buy £35 million of secured debt

[cesareborgia] 09/8/2022 14:56

If the relisted price was 20 someone with £7 million could buy £35 million or maybe repayable or at least secured debt

[dandigirl] 08/8/2022 23:25

Come on! As matters stand, nobody in their right mind will consider WAS1 a buying opportunity anytime soon.

[l2s] 08/8/2022 13:41

With some people speculating that when/if relisted the bonds could be available to buyers at prices down in the 20 or 30p range I would think that the existing heading may actually be very appropriate!

[pusb] 08/8/2022 12:59

Dandigirl - while I almost see your point, all bondholders need to be aware of issues, which may not otherwise have come to their attention, which reflect the viability of Wasps as an ongoing investment.

[a0002577] 08/8/2022 12:13

What to, DandiGirl? 'The dangers of catching a felling knife' or "don't get stung by a Wasp"