The Poolie Bunker

http://home.skysports.com/list.aspx?hli ... e+deferral
its still all a bit murky isn't it,all this wheeling and dealing.interesting thing is that 4 of the players refused,expect dennis "man management" wise will have their names in the paper pronto.

I note that all the squad have agreed to the deferment less four. I wonder if thats the four that have been told they are being released? I also saw from the BBC site that the administration deal is for 1p in the £. If they owed me money I'd rather they went to the wall than gave only 1p in the £. Given that most of the money is probably owed to HM Excise and Taxes and the VAT man why should the nation be ripped off with only 1p in the £. Also why should the players be paid the money they are owed rather than just the 1p in the £ that all the creditors get. Master Bates is a bit of a w*nker isn't he.

I think I'll try that myself, and see where it gets me.....................

THIS DOES MY HEAD IN ..... I wonder what the building society would say if I made the offer of a penny in the pound to them?

I was just thinking the same thing about my credit card, it cuts the grand I owe down to a tenner straight away, I'm sure Natwest will be over the moon with that.......

These Leeds boys are half-wits. Why take this rubbish from multi-millionaire Bates? He is not bust. So why agree to give him free credit (in the case of the half-wits) or write off his debts? I am a tax payer and I want a floodlight in return if the VAT man agrees - would be a fine addition to the allotment.

Ah well, it doesn't work quite like that in Insolvency practice. The Inland Revenue and VAT are known as 'preferential creditors,' and the rest, including the players are 'non-preferential' creditors. What this means is that any cash in the pot or any assets that can be liquidated for cash, OR any cash coming in from a sale of the company, goes to the IR and VAT, the remainder then gets shared out on a proportional basis. In this case 1p in the pound, which is a nominal amount just designed to clear the debt. The non-prefs though can reclaim the VAT and write the losses off to tax rebate so their 1p in the pound actually turns into more like 30p.

Guess how the value of the sale is agreed?? Yep, you've got it.

As for the players, as employees their money is guaranteed, although only to the levels of earth wages like we all earn, from the DTi. They'd maybe get (and I dunno what the levels are these days as I'm a bit out of touch) 170 quid a week or whatever minimum wage is, but if they agree to a deferral, they'll get the wages agreed in their contracts only at a later date. So they actually benefit massively by just waiting. I'm sure the poor dears aren't living on baked beans.

So who gets to vote for the AVC, the poor punters who get the 1p in the £ (which might be worth 30p in £) and/or the preferential creditors lke the IR and VAT. So can HMG effectively vote to get others shafted.

It just proves the point - if you owe a few grand you are bad risk with no credit rating but if you owe tens of millions you are an entrepreneur and a businessman .

Everyone gets to vote and their vote is worth the cash that they are owed. Once the 'yes' vote gets to 51% of the company's debts the CVA is a formality.

In reality there's no point in voting no. If the well's run dry and you want to get anything at all back, i.e. the VAT, the tax relief and/or your wages you might as well vote yes, if you vote no and the CVA doesn't go ahead, the company will be liquidated, the IR and VAT will be paid and anything else in the pot will go in the massive fees that the Liquidator will charge for his services. In a CVA, the fees are minimised although still extortionate.

In actual fact, if you owe a few grand and you've nothing at risk like a house, you can actually go bankrupt very easily and these days can be discharged from bankruptcy in a very short period of time. It's quite fashionable for newly qualified students to do this to get rid of their student loans. I did read somewhere that this particular loophole was being plugged though.

A mate of mine at work went successfully applied for bankruptcy at the back end of last year. He had his ex wife pestering him for extra money even after he had paid his maintenance for his kids. He then found out that the money he was giving her was paying for her mortgage while her and her new fella sat on their arses all day. He was only living in a rented house and he started paying his wages into his mams account.

He said it was the easiest thing he has ever done and it cost around £200 in charges and he was in court for all of about 5 minutes. He also didn't have to pay any tax for 6 months.

That sounds about right Fensy. He'll be discharged in something like four to six months and he gets a clean slate. Used to be that you were knackered for credit but there's always someone'll start the ball rolling for you.

I think he has to get himself some sort of credit/store card and just keep paying it off for a few months to get his credit rating up.

He was devasted the other day when we got our pay slips, it is his first month of being a taxpayer again

Yeah that's exactly what you have to do. Bizarrely in a lot of cases you can't have credit until you've had credit. I.e. you need a credit history but as you say, someone like Debenhams/Burton/MFI will give him credit on the spot and that counts towards it.