Racing Post – 31 December 2014

[wit]

That’s the day reportedly the GBP 147m loan facility from the Irish taxpayer expires, and also the staff retention scheme noted in the Dec 2012 accounts:

https://theracingforum.co.uk/horse-r … 71&start=0

The Dec 2013 accounts are now overdue for filing at Companies House – maybe to try work out what they should say as regards >>going concern << at their sign-off date ?

The RP loan reportedly is now the last item left in the Project Evergreen category of the Special Liquidators, who seem not to be getting what they deem acceptable offers in their attempts to sell it.

One report says the most recent bid date for the debt was October 10, when one interested party reportedly >> decided not to proceed with bidding because he was denied access to up-to-date financial information about the print and online title. <<:

http://www.irishtimes.com/business/sect … -1.1962145

The politicians would love to draw a line under this.

The existing borrowers are reportedly among those trying to buy the loan at substantial discount to face value.

How much of a bath will the Irish taxpayer end up taking, and will the line finally be drawn under this before New Year ?

[indocine]

http://www.irishtimes.com/business/sectors/media-and-marketing/racing-post-180m-debt-bought-by-owners-with-backing-of-hayfin-1.1973226

[wit]

many thanks – my search engine missed that later piece from the IT.

the only – albeit very significant – new bit of information there is in the headline: >> Racing Post €180m debt bought by owners with backing of Hayfin <<.

no mention of just how much was paid for that €180m debt – ie how much of a bath has been taken by the Irish taxpayer.

can anyone share that figure ?

the rest of the piece is a photo from 2010 (Ruby must be delighted at its re-use in this context) and a lot of historical info.

As of Nov 8 Companies House is showing that the same day as the original post (Nov 7) it accepted the 2013 accounts, having received them on the Oct 31 deadline.

the accounts include this information:

=========
Subsequent Event

On 30 September 2014 the credit committee of IBRC extended the facility from 31 December 2014 to 31 December 2015. All of the terms of the facility remain unchanged. The various financial covenants that the group is required to comply with have also been extended to 31 December 2015.
=========

so would seem the pressure had eased 10 days before the reported 10 Oct latest bid deadline.

presumably the new owners of the debt stepped into this Dec 2015 position – wonder how that now plays out as between FL Partners and the new party Hayfin.

review of accounts to follow.

[indocine]

slightly later addendum… sold at sig discount but above PWC valuation

http://www.irishtimes.com/business/sectors/media-and-marketing/second-bidder-unhappy-with-sale-of-racing-post-1.1979789

[wit]

thanks again.

interesting to read that some bidders still had only the 2012 audited accounts to work with, when the 2013 audited accounts were signed-off just four days after the final bid deadline of October 10, 2014.

even though bank loans that were falling due to be repaid 31 December 2014 were extended to 31 December 2015 on 30 September 2014, a full ten days before that final bid deadline.

until that loan repayment date was extended, there would have been a very small distinction to be claimed between the amount of information that could be made available by the seller of debt related to the business, rather than the seller of the business itself.

after all if (as seems certain) the loans would never have been repaid in full by 31 Dec 2014, then the owner of the debt was inexorably in effect going to become the owner of the business at the end of that day.

with two of the bidders outside the business making the kinds of comments reported, the bidding process as it actually played out seems to merit at least an examination.

and why now all the coyness at telling the Irish public just how much of a loss they have been force-fed ?

in the way of things, the true figure will emerge at some point. until it does, let’s try a bit of calculated speculation.

working off the 2013 accounts, we seem to be talking basically about a loan of GBP 145m on which there was payable annual interest of GBP 9.5m (2012 – GBP 147m and 9.9m).

playing with the figures on the 2013 accounts thread, i reckon the debt should not have gone for less than GBP 115m.

any other bids ?

[wit]

although anonymised by the Irish parliament, the RP loan was the last item left in Project Evergreen, the commercial loans part of the IBRC liquidation, so at a guess……

November 4, 2014: Written Answer number 345

=================

IBRC Mortgage Loan Book

345. Deputy Michael McGrath asked the Minister for Finance if he is satisfied that all potential bidders for a certain commercial loan book being sold by the IBRC special liquidator (details supplied) had equal access to the books and records of the underlying business; and if he will make a statement on the matter. [42210/14]

Minister for Finance (Deputy Michael Noonan): The Special Liquidators of IBRC have confirmed to me that the sales processes that they have employed have been designed to maximise value from the sale of Irish Bank Resolution Corporation Limited (in Special Liquidation) loan assets for creditors and this continues to be the case. The Special Liquidators are satisfied that this has been achieved in the current and previous loans sales processes. I am further advised that the level of information made available to bidders, throughout the liquidation process, has been provided on the basis of legal advice furnished to the Special Liquidators.

http://oireachtasdebates.oireachtas.ie/ … t#WRN03950

====================

that’s it by way of overview ?

[clivexx]

Bidders would certainly have had access to 2013 accounts in "draft"form and management accounts up until whenever they wanted

The loans would have simply been rolled over. Thats usual

but yes, one way or another it would have to probably be sold at a discount

[wit]

Bidders would certainly have had access to 2013 accounts in "draft"form and management accounts up until whenever they wanted

that’s precisely what the two experienced bidders say they did NOT have, if you read the two Irish Times links above.

and note that the parliamentary answer very carefully does NOT give the requested assurance that all bidders had equal access to the books and records of the underlying business.

instead it dances around the question asked and makes a lot of defensive-sounding peripheral statements.

nor would it have been "usual" to "simply roll over" this loan.

a deadline of 31 December 2014 had been set to get the Irish taxpayer out of it, and a staff-retention scheme involving bonuses had been authorised by the taxpayer specifically to that date.

[Author]

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