Please explain.
Discussion
Can my fellow PH'ers explain what has happened at TVR from the business/legal side of things. I am bemused as to how the current owner of TVR can close the business down throught lack of sales & income, lay of the staff, close the factory doors etc etc hear nothing from him or Mr Oxley for 10 weeks then we find out they've bought it back from the administrators. How does this work wtc?
Simple, I think.... he pays £30M for BA, however, it owes him summat like £25M from before, so as the major creditor of the now defunct BA he gets his £25M back. Means he, in effect, gets the whole shebbang, including the IPR, Cars in production, Name, Logo etc for £5M - cheap at half the price!!
At least, that's how I think it works - could be way wrong though?
At least, that's how I think it works - could be way wrong though?
I know it's a a round about way of doing it but i don't think he actually placed it in to administration he had other people take it over then place it in administration he then bought it back. I think he did this in case there was a complication in him buying it had he placed it in administration. There is a lot of bad feeling but personally think that TVR built there best cars under him certainly better quality maybe with doing what he has he will get it to where he wants to even if we don't agree with his methods personally i think the government is somewhat to blame for allowing businesses to do this he has only done what he is allowed to so in my book fair play to him i think others are to blame here for letting him do it. There seems to much saying and not enough doing and hope he has learned from his mistakes but doubt it as he has already brought DO back.
ubernoober said:
Simple, I think.... he pays £30M for BA, however, it owes him summat like £25M from before, so as the major creditor of the now defunct BA he gets his £25M back. Means he, in effect, gets the whole shebbang, including the IPR, Cars in production, Name, Logo etc for £5M - cheap at half the price!!
At least, that's how I think it works - could be way wrong though?
At least, that's how I think it works - could be way wrong though?
umm.........
He doesn't get any money back, there isn't any. That's gone. What he gets back are the assets of the company, most notably the trademarks and IP rights. He has bid as any other prospective buyer would. Any money lost in the company up until now is lost period. What he does get is freedom from the debts he built up, responsibility for staff redundancy costs etc..
Hi
As I understand it as NS was the biggest creditor (approx 80%) he will get approximately 80% of his bid money back, for example, if his accepted bid was 2.5 million then as he gets 2.0 million back he has in fact only paid 0.5 million to regain TVR free from all debts, redundancy, warranties, etc.
Rob
As I understand it as NS was the biggest creditor (approx 80%) he will get approximately 80% of his bid money back, for example, if his accepted bid was 2.5 million then as he gets 2.0 million back he has in fact only paid 0.5 million to regain TVR free from all debts, redundancy, warranties, etc.
Rob
Edited by Roberto Rica on Saturday 24th February 00:10
Roberto Rica said:
Hi
As I understand it as NS was the biggest creditor (approx 80%) he will get approximately 80% of his bid money back, for example, if his accepted bid was 2.5 million then as he gets 2.0 million back he has in fact only paid 0.5 million to regain TVR free from all debts, redundancy, warranties, etc.
Rob
As I understand it as NS was the biggest creditor (approx 80%) he will get approximately 80% of his bid money back, for example, if his accepted bid was 2.5 million then as he gets 2.0 million back he has in fact only paid 0.5 million to regain TVR free from all debts, redundancy, warranties, etc.
Rob
Assuming he is a preferential creditor. As there is no bank involved (presumably) I believe he would only be second in line to the treasury (VAT, PAYE etc..). As I suspect that he had a charge over the company he will rank ahead of any suppliers and would in fact get 100%, assuming nothing owed to HMG and assuming the landlord (PW) didn't also have a charge?
Roberto Rica said:
Sorry Unrep you're not correct.
Nobody will get 100% back unless NS bid the full amount of the debts.
Rob
Nobody will get 100% back unless NS bid the full amount of the debts.
Rob
You misunderstand. I meant if he was the only preferential creditor he will get 100% of whatever money he paid to buy back the company, not 80%. Everyone else will get nothing. (Less administrators costs presumably).
Guaranteed none of the creditors will get a bean - as said above, Customs and Excise/Inland Revenue comes first, and then without a doubt, the administrators fees, otherwise no administrator would ever administrate!!. If there's any change left after that.....
What annoys me is the fact that:
a) the law allows a company to be 'sold' or 'floated off' when not a going concern,
b) for the director (who happens to be the major shareholder and creditor) to resign,
c) that the said director was the guy who 'sold' it
d) that the company folds days later with no redress against the dodgy 'seller'
e) the law allows that said director/seller to bid for the failed company
and finally
f) the said director knows more about UK company law than anyone else!!!
Simply STINKS!
What annoys me is the fact that:
a) the law allows a company to be 'sold' or 'floated off' when not a going concern,
b) for the director (who happens to be the major shareholder and creditor) to resign,
c) that the said director was the guy who 'sold' it
d) that the company folds days later with no redress against the dodgy 'seller'
e) the law allows that said director/seller to bid for the failed company
and finally
f) the said director knows more about UK company law than anyone else!!!
Simply STINKS!
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