Wasps 22 Discussion Threads

[dehuminiser] 12/10/2022 14:09

Exeter cancelled and administration confirmed

[bondholder] 12/10/2022 07:31

Senior secured creditors tend to do better than the rest in insolvent administrations. The article fails to make the distinction between different classes of creditors e.g. HMRC and DR who are subordinated to the bondholders.

[stevros] 11/10/2022 21:15

hxxps://www.rugbypass.com/news/wasps-as-we-know-it-very-unlikely-to-continue/

This is grim reading for Wasps supporters. Seems that only one of the possible buyers is particularly interested in the club. Also total debts being around the £90million mark is higher than thought. All the rumoured packages to buy the club were around the £50million mark, which would certainly require administration and therefore a significant reduction in the price of the bonds.

[pusb] 11/10/2022 19:45

Latest is that an American billionaire has entered the fray. That’s four out of the five supposedly interested investors. This one is said to want the stadium and the football club. The days of heads of agreement having been reached with HSBC seem a very long time ago. HMRC winding up order apparently before the court on Monday.

[ozzie_dog] 11/10/2022 18:19

@jumpman1 I don't understand why you are so pessimistic? Surely you read Wasps financial statements and the prospectus before you invested in the bond? Please tell me that you did?

I certainly did, and it seemed quite obvious to me that Wasps were likely to be in an endgame just like this, obviously I would have preferred something unexpected to have made the situation better. But I didn't have any realistic expectations of that to happen. What is happening right now was my most expected endgame. Because it was sport and not a conventional business I still invested, my only regret is that I didn't invest a bit more, but then again, that is hindsight talking. I don't want to come across as uncaring though, I quickly started following Wasps and it added to my sports interest at the weekend, and I would really like to see them come through this. But of course my investment comes first, but that doesn't mean that I don't care about wasps, because I do.

I think your post is a bit contradictory, you seem to be implying that you think that there is a reasonably good chance that the stadium will be sold, but also that bond holders will lose out (I admit they could possibly lose some of their investment under certain scenarios if they paid 100p (I didn't). Then you go on to imply that somehow DR will divert the sale proceeds of the stadium from the bond holders, but he can't do that! Because the stadium is a first charge security on the bond!

[jumpman1] 11/10/2022 12:42

Most of the bidder will only want the arena. Not wasps with the huge debt and burn rate. Wasps will likely have to enter admin for anyone to actually want to buy them. As no one in right mind would invest as they currently are.

unfortunately its will be the bond holders that get burnt on this as DR will only be looking out for number 1.

[ozzie_dog] 11/10/2022 10:55

Yes it is very reassuring that there is some interest from very substantial parties. I would like both us bondholders and Wasps to come out of this mess intact. But for a while I thought it might be us bond holders who lose out and Wasps wouldn't suffer much pain. But if anything it looks like we might get out of this ok, I hope it doesn't happen but Wasps might end up being relegated due to going into administration.

[bondholder] 11/10/2022 10:46

Very reassuring to see competitive tension amongst potential bidders including some who clearly don't need finance to proceed.

[ozzie_dog] 11/10/2022 08:54

The NEC is also interested, it did make an offer on the stadium (only the stadium) last week, and is now reported to be considering a bid for both the stadium and both wasps and CCFC:

hxxps://www.thebusinessdesk.com/westmidlands/news/2068179-nec-lodges-bid-to-buy-cbs-arena

[bondholder] 10/10/2022 22:20

The attraction of Wasps for Ashley lies chiefly in the stadium, which runs a profitable hospitality business including a Hilton hotel and Grovesnor Casino, as well as the potential for returning to football by buying Coventry City, who are tenants of the rugby club.

[bondholder] 10/10/2022 22:16

EXCLUSIVE: Ex-Newcastle United owner Mike Ashley holds talks with struggling Premiership Rugby club Wasps as he eyes a £50m takeover, with negotiations underway between the parties involved

[bondholder] 10/10/2022 22:15

Mike Ashley offers to refinance the bond

[barondene] 10/10/2022 15:17

They do but do not withhold repaying fund providers as WASPs have done along with HMRC and suppliers

[ozzie_dog] 10/10/2022 10:19

@jumpman1 It looks like most (if not all) of the rugby premiership clubs make a loss, and other clubs have found investors to fund them, so it isn't as unlikely as you think it is. You might not have lost your investment in this bond yet, although the situation is far from ideal, there is still hope.

[barondene] 10/10/2022 10:14

Locals suggesting 6000 max in ground including Saints and freebies

[jumpman1] 10/10/2022 09:00

If someone can convince investors to spend 50m on a loss making rugby club for many years. Who struggle to get 10k fans at a local derby with free tickets. Well more fall them.

I feel this is being used as a way to keep the NOI’s going by showing they are doing something. Why hoping someone actually wants to invest in them comes along.

[barondene] 10/10/2022 08:40

Dallaglio saying negotiations with bondholders gone wonderfully

[ozzie_dog] 10/10/2022 08:22

Perhaps this bid is based upon (or actually is the still the same bid) that we have previously heard about, which was a rejected offer that allowed the bond to be redeemed in full. Perhaps it was rejected because those that decide whether to accept or not, felt that the assets are worth more than the circa £50m mentioned in the article. If so, that might be why it has been mentioned about buying out of administration, when there would probably be little choice but to accept the bid at that late stage. Can anyone suggest other scenarios that might fit the current situation?

[bondholder] 10/10/2022 08:11

Excellent news

[barondene] 10/10/2022 08:10

hxxps://www.thebusinessdesk.com/westmidlands/news/2068130-bid-launched-by-former-ceo-to-save-wasps-from-extinction?utm_source=newsletter&;utm_medium=email&utm_campaign=WestMidlands_10th_Oct_2022_Daily

[pusb] 09/10/2022 20:12

Want to buy out of administration if the rugby authorities agree not to relegate. Dallaglio’s comments to that effect on BT Sport have received a furious Twitter reaction. If purchased out of administration, how does that affect the value of he security - they will be looking to get everything on t(e cheap?

[barondene] 09/10/2022 16:51

Same group that set up Bonds and former WASPs Director ???

[ozzie_dog] 09/10/2022 16:26

You beat me to do it: hxxps://www.coventrytelegraph.net/sport/rugby/wasps-takeover-bid-report-emerges-25217428?int_source=nba

Sounds like excellent news, fingers crossed!

[barondene] 09/10/2022 15:39

hxxps://news.sky.com/story/former-wasps-chief-spearheads-bid-for-stricken-premiership-rugby-club-12716501

[jonnyhatesrap] 07/10/2022 15:45

US Bank have just published a notice of being aware of NOIs (which trigger another event of default). Leaving the verbiage aside, they are essentially saying they reserve their right to do nothing without being indemnified or prefunded by the bondholders (a right they have under the trust deed). Ridiculous as the Trustee will recover all its expenses ahead of bondholders anyway, as a term of the trust deed, meaning they take no real credit exposure.