No conversion of debt to equity until after Malky legal battle finishes

Very interesting this - according to the minutes of the supporters trust meeting with Vincent Tan a few days ago, he was quoted as saying he won't convert anything until the business with Malky is concluded.

The only possible reason I can think of for that being the stumbling block is Tan is looking at the possibility of losing and having to pay the remainder of the contract AND damages. Theoretically, the damages would be less for a club 120 million pounds in debt, compared to one that's breaking even.

If that's not the cas it's strange that with all the things going on right now that the only problem Tan sees is Malky. He must really dislike him

http://www.walesonline.co.uk/sport/football/football-news/vincent-tan-not-convert-debt-6854784

Could be a ploy to force Malky's hand? Make him the scapegoat of the club

He's been using too many excuses. It's quite clear he will not convert his debt to equity now.

*** G L O V E S *** wrote:He's been using too many excuses. It's quite clear he will not convert his debt to equity now.

I'm with you gloves but I was attempting to remain impartial for once

Yeah, let's face it...probably not going to happen, at least, not in the near future.

I have said it before, but there is no sense in converting to equity whilst threatened by relegation.......but Tan is hardly going to say that publically.

Once this season is over, regardless of which division we will be playing in next season, an equity conversion becomes financially feasible................  

TDA wrote:I have said it before, but there is no sense in converting to equity whilst threatened by relegation.......but Tan is hardly going to say that publically.  

Once this season is over, regardless of which division we will be playing in next season, an equity conversion becomes financially feasible................  

Step 1. Relegation
Step 2. Club value drops and so does share value
Step 3. Convert debt into shares at the cheaper price - get more of the club for his buck
Step 4. Win promotion again
Step 5. Club value soars again
Step 6. Sell club for a tidy profit



Only potential flaw with this plan is who would want to buy?

Rhys wrote:

TDA wrote:I have said it before, but there is no sense in converting to equity whilst threatened by relegation.......but Tan is hardly going to say that publically.  

Once this season is over, regardless of which division we will be playing in next season, an equity conversion becomes financially feasible................  

Step 1. Relegation
Step 2. Club value drops and so does share value
Step 3. Convert debt into shares at the cheaper price - get more of the club for his buck
Step 4. Win promotion again
Step 5. Club value soars again
Step 6. Sell club for a tidy profit



Only potential flaw with this plan is who would want to buy?

The problem is that one isn't just a 'step', it's a challenge with no guarantee of success. We're in danger of becoming arrogant and reckoning the championship is below us, while I think the reality is the top 5 are more than happy to knock us down a few pegs.

Me, I'm at the 'I'll believe it when i see it' point in my trust of Tan.