United to pay PIK debts in full

Right, so when are we going to open our transfer "war chest"?

Originally Posted by dinger

The PIK's are the only debt the Glazers are responsible for the rest is on the club. £#%&!ing @#%&!s.

But Gill said it was nothing to do with the club

@#%&!s.

Originally Posted by The Watcher

But Gill said it was nothing to do with the club

@#%&!s.

It isn't, but...

Since they refinanced the senior debt, i.e. the 500 million, they are allowed to take out 70 million or so per year in dividends, so although the PIKs are technically their responsibility, it's United that will utimately pay for them. Their @#%&!ishness knows no bounds...

Originally Posted by Sloane

Given the Glazer's own 15% of the PIKs, we can assume they are trousering £33m, whatever the source.....

Oh yea, they bought some of PIK on the cheap didn't they?

The £#%&!ing cheek of them. Take out the PIK loans to but the club, then loan money from the club to buy a percentage of those very same loans. Finally, use the clubs money to pay off the PIKs and make a profit from the part of the debt they own. Millions out of thin air.

English football :shakehead:

They'll have just made themselves a good £30m or so for the portion of the PIK debt they bought themselves. Win win for them @#%&!s. Edit: as said above.

Originally Posted by Sparky***

Right, so when are we going to open our transfer "war chest"?

Rooney is on to it. He's livid!

Originally Posted by Albert Tatlock

It isn't, but...

Since they refinanced the senior debt, i.e. the 500 million, they are allowed to take out 70 million or so per year in dividends, so although the PIKs are technically their responsibility, it's United that will utimately pay for them. Their @#%&!ishness knows no bounds...

I don't think that's right, I'm pretty sure they were entitled to a £70 million one off payment and then £25 million a year in dividends, so they can take £95 million and Gill can then say it wasn't United's money they used to pay off the PIK debt it was their own

Originally Posted by Sandman

I don't think that's right, I'm pretty sure they were entitled to a £70 million one off payment and then £25 million a year in dividends, so they can take £95 million and Gill can then say it wasn't United's money they used to pay off the PIK debt it was their own

I think that you are right, my mistake, sorry.

Originally Posted by The Watcher

Oh yea, they bought some of PIK on the cheap didn't they?

The £#%&!ing cheek of them. Take out the PIK loans to but the club, then loan money from the club to buy a percentage of those very same loans. Finally, use the clubs money to pay off the PIKs and make a profit from the part of the debt they own. Millions out of thin air.

English football :shakehead:

Nail.head interface.

Perfect summation.

[quote=Albert Tatlock;2232704]It isn't, but...

Since they refinanced the senior debt, i.e. the 500 million, they are allowed to take out 70 million or so per year in dividends, so although the PIKs are technically their responsibility, it's United that will utimately pay for them. Their @#%&!ishness knows no bounds...[/QUOTE]

I genuinely still don't understand how they are legally allowed to do what they have done

[quote=Harri Jaffa;2232752]

Originally Posted by Albert Tatlock

It isn't, but...

Since they refinanced the senior debt, i.e. the 500 million, they are allowed to take out 70 million or so per year in dividends, so although the PIKs are technically their responsibility, it's United that will utimately pay for them. Their @#%&!ishness knows no bounds...[/QUOTE]

I genuinely still don't understand how they are legally allowed to do what they have done

Common practise Harri

http://en.wikipedia.org/wiki/Leveraged_buyout

Originally Posted by The Watcher

Oh yea, they bought some of PIK on the cheap didn't they?

The £#%&!ing cheek of them. Take out the PIK loans to but the club, then loan money from the club to buy a percentage of those very same loans. Finally, use the clubs money to pay off the PIKs and make a profit from the part of the debt they own. Millions out of thin air.

English football :shakehead:

if it were out of thin air i'd have no problem. unfortunately it's out of the club.

Originally Posted by borsuk

if it were out of thin air i'd have no problem. unfortunately it's out of the club.

Yeah, and good job we've never in our history spent more than a tenner on a player or this might have a bad effect on our transfer funds eh?

Originally Posted by Sparky***

Yeah, and good job we've never in our history spent more than a tenner on a player or this might have a bad effect on our transfer funds eh?

you what?

Originally Posted by borsuk

you what?

Surely if they repay these PIK loans then they are more entrenched in this club than ever?

If they take 70 to 90 mill£ out of the club as they are "allowed to: (how the £#%&! this works is beyond me) and borrow some more from elsewhere or find it down the back of the sofa, they then pay off this PIK, somehow that leaves MUFC with £500 mill debt as the bond thingy? yeah or nay.

The PIK is payed off with utd's money in a roundabout way, they, (personally) now have no debt, Untd has £500 mill debt (the bond) and the @#%&!s are happy, the club is less at risk than it was, because the hedge fund cant recall the money or go heavy handed ie taking control of the clubs assets.

And still the #@&%!s pile through the door swirling green & gold scarves & singing glazer out & the glazers win win win.

Have I got this right?

Murmurings on the streets that we've sold a replica European Cup to the Sheikh for £250m.

clever move by the glazers from a business perspective.

NO money has been taken from the club.

http://www.bloomberg.com/news/2010-1...rate-debt.html

They must be off, surely?

Originally Posted by marlo

clever move by the glazers from a business perspective.

Thanks for that, Keynes.