The Sevco High Command reaches out to Close Brothers

I hear that the Serious Professional got new orders yesterday.

He was told by the Conveyancing Consigliere to organise a meeting with Close Brothers.

Now, let’s make a very safe assumption.

The reason that this meeting is required is probably not to tell that family firm that Sevco wants to pay the loan back early!

My best guess is it is for one of the following reasons:

(1) Ask for more time to pay.

(2) Ask for more money.

Of course, (1) and (2) are not mutually exclusive and the Sevco High  Command might require both.

Remember that Close brothers are expecting to be paid £4m in February 2019.

It isn’t an overdraft as was trumpeted at the presser, it is a secured loan.

I’m told that the Serious Professional reminded Sevco’s legal hotshot that the deal with Close Brothers was non-negotiable.

Of course, he is totally correct.

 

 

 

 

 

25 thoughts on “The Sevco High Command reaches out to Close Brothers”

  1. Have it on very good authority Phil that the first that Close Brothers (Scotland) knew about this loan was when they read about the “overdraft facility “ in the papers.

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  2. I know it is silly to try and apply logic to anything related to Sevco, but surely it would have made more sense for them to have paid back Close Bros. over the Summer when they had all the season ticket money in? Then, if they needed more in Dec/Jan they could have gone back and tapped another loan to see out the season. Or is this an example of the financial ponzi scheme they have been using to fund the club running out of suckers, sorry investors, to tap?

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  3. C’mon phil, are they looking to spend the brothers money in january instead of paying the bills, do they feel £4million (more los) will insure they will win the league… last chance saloon.

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  4. Unlike the the Blue Room chaps who provided the “soft loans”, that they will be really lucky to see again, or the Banks who threw money at the dead club, Close Brothers have no emotional or “Kultural” affinity with the team now playing out of Ibrox. They are hard headed business men. VERY hard headed I hear! They will NOT simply extend the pay back deadline. There will be punitive charges if this is to happen. If Sevco want a further advance we really WILL be talking last roll of the dice stuff. CB will read the situation, correctly, as “they can’t afford to pay us what they already owe us and now they want more.” This will require security that will make their eyes water. I simply can’t see it happening unless the crumbledome itself is secured against it. PLUS possibly some personal guarantees from the Directors. Aye and maybe their wives and weans as hostages. This is not good news for Sevco. They will of course spin it as an OVERDRAFT EXTENSION. We MIGHT, just might, be approaching the endgame.

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    • Isn’t there already an ongoing dispute about stadium ownership? I thought that’s what that company (I forget their name) had lodged a claim for, as they had bought the rights from Wavetower, and I think were pursuing a lawsuit against Collyer Bristow? So long as there is a legal dispute, Close Bros cannot ask for the crumbledome as security, therefore they have nothing to secure any loan against. Not sure about their other directors, but Dougie Park has a car sales franchise that he could use as security, but being the sensible guy he is, he’s not prepared to jeopardise his business to cover Squinty’s shortcomings.

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  5. “So, Mr. Professional, how can we help you?”

    “Well it’s like this see. We erm… we would like more time to pay.”

    “More time to pay? I see. You do, ah, realise the contract is non-negotiable? And you do recall that, on the insistence of the team leader who set it up – who argued at the time that your company was a dangerously poor credit risk – it contains the most punitive sanctions for default?”

    “Yes, I do realise that. It’s just that we now hope you might offer us an… alternative option. To us paying you your money in February.”

    “Ah I see! Yes of course. If you can’t pay us our money back, of course we can accommodate you with an alternative option.”

    “You… you can? Why… well that’s great news!”

    “Don’t mention it, Mr P. The option is, we send the ****ing bailiffs to Ibrox and Auchenhowie, and sell off any object or asset that isn’t ****ing bolted down. Now get out of my office before I call security. Thanks for your custom.”

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  6. Well, surprise, surprise. As things stand they won’t have the £4m cash to repay Close Bros in February.
    Unless suitable security is offered up, think stadium, as everything else is already mortgaged, then they are unlikely to give the Ibrox club a free pass.
    More evidence that without the Europa Cup qualification finances would have been stretched to the limit.
    One of the couple of assets that they have will have to go in January, against Gerrards wishes, otherwise Close Bros staff will be serving up the pre and half time pies and bovrils from their recently acquired kitchen equipment.

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  7. Close Brothers loan
    Side Letter Lawsuits
    Share offer Chaos
    Retail Chaos
    Fan zone Chaos

    I think I’ll have some caramel topping with my popcorn….

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  8. Why are we not surprised by this? The “revolution” has cost a few bawbees and someone has to pay for it, so why not Messrs Close. “Neither a lender nor a borrower be” is obviously an adage that the sevco board and the glib one will have no truck with but other people’s money is better to gamble with as far as they’re concerned. How the interest must be stacking up and costing sevco is keeping me awake at night. Oh dearie me. HH

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  9. We’ve just passed through the first international break of the season , in mid September , and the begging bowl is out already ?

    Superb .

    Keep at em , Phil

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    • Isn’t Europa money paid a year in arrears? So can’t actually rescue them right now anyway. They have ticket returns from 3 home games only to offer any upfront cash – maybe 3 million absolute max after costs – and zip-all from the sale of orange tops! Or blue ones , or white ones for that matter!

      Payroll costs must be ‘off the radar’ over there!

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  10. why look to pay it back early is where if they could ask for more of the Blues Brothers they Aint got it to pay back 10 mill from EL that will all go to the unpaid invocies

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  11. ”Someone’s knocking at the door ,
    Somebody’s ringing the bell ,
    Do me a favour – open the door and let them in ”…and it’s not Paul McCartney’s Wings – it’s that other close harmony group The Close Brothers and they’re not singing from the same hymn sheet as the GASL .

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  12. This is and was highly plausible. The minute they got to Europa league guaranteed extra few million in turnover, it shows a better light on the books……well a different light.
    I believe they will, with the Europa money there,
    Ask for an extension to both the length of time and the loan.

    There’s a two pronged fork here at play. Close brothers by all means will want their loan repaid, but they are in the business of lending money, they also want to continue lending, earning profits off the exorbitant interest rates.

    Here’s a possible scenario:
    I see a payment of £1m made to Close Bros
    this is their £1m profit made on the deal.

    The original £3m loaned remains unpaid and is deferred by way of an extension, say 1year.

    And extra £2m is borrowed, with somewhere between £500k and £1m repayable.

    Here’s the sore one though, the £3m deferred wil also carry at a minimum £1m interest, over the year, that’s 33% flat rate over a year…..same as before. It could well be more than that.

    Just a guess. But mark my words. I doubt it’s too far from what will transpire.

    I know my numbers. I worked for a time in the industry, and right from start. As soon as I saw close brothers were involved, yikes.

    They are brutal. They deal with all the stuff nobody else touches. Old cheap cars, distressed businesses and much much more. To even be dealing with them is a sign you aren’t in rude financial health.

    It’s ruthless capitalism, sevco feeling the brunt of it.

    Storing up problems for future.

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  13. Extending the repayment time and increasing the amount of the loan shouldn’t be problematic, just so long as Sevco has additional security to offer.

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