Re: Ownership and twists : Wed Apr 09, 2014 7:40 pm
Ferocious Aardvark wrote:
Did the administrator somehow have inherent knowledge in his brain of what had gone on, or has he got psychic abilities? I suggest probably not. Therefore as he has not taken evidence from the main protagonist in the failed company I will take his findings with a pinch of salt and continue to wonder why he did not speak to OK.
Another reason is that the report simply explains that in mid-January 2014 HMRC presented a winding up petition and a decision was taken that the debenture holder was not able to let a liquidation continue and so appointed the administrator. However to put some flesh which the report omits from those bones, immediately following the administrator's appointment, he sold the club in a pre-pack, albeit some form of conditional one. Pre-packs take some setting up so I am interested in when it was first set up, by whom, and why the report doesn't mention the pre-pack. It says that "the only interested party leading up to the Administration was the existing board who formed a new company (BB2014)". However you wouldn't know from that, that the administrator was appointed and the prepack went through both on 31 January 2014, but BB2014 had in fact been formed months earlier, in fact on 12 November 2013. I am curious as to why? That date is long before the HMRC's petition.
But he didn't. He started a new company - OKB - not the old company Bradford Bulls Holdings which was eventually put into liquidation. He did agree to the new company being hamstrung by the distribution penalty.
On any view the financial (mis)management turned out to be catastrophic, but if you wanted to understand what happened, why wouldn't you ask the owner of the company?
And with regard to monthly cash flow accounts - if you were the RFL and weren't getting them, or they didn't add up, but you did nothing, would you also be staggeringly reckless?
If the administrator's figures are right, and the company went bust owing over £1.1m but that includes £375k due to OK, that doesn't tell you what the rest of the debt was at the date OK sold his shares. I suggest it will obviously have been less. The distribution shortfall was clearly a key problem as they clearly did not replace that money with other funding and it is no excuse, but it may have been predictable as may be the case that had the last minute distribution fine not been levied, and had the club instead had normal distribution funding, OKB would very probably not have gone bust when it did.
Another reason is that the report simply explains that in mid-January 2014 HMRC presented a winding up petition and a decision was taken that the debenture holder was not able to let a liquidation continue and so appointed the administrator. However to put some flesh which the report omits from those bones, immediately following the administrator's appointment, he sold the club in a pre-pack, albeit some form of conditional one. Pre-packs take some setting up so I am interested in when it was first set up, by whom, and why the report doesn't mention the pre-pack. It says that "the only interested party leading up to the Administration was the existing board who formed a new company (BB2014)". However you wouldn't know from that, that the administrator was appointed and the prepack went through both on 31 January 2014, but BB2014 had in fact been formed months earlier, in fact on 12 November 2013. I am curious as to why? That date is long before the HMRC's petition.
But he didn't. He started a new company - OKB - not the old company Bradford Bulls Holdings which was eventually put into liquidation. He did agree to the new company being hamstrung by the distribution penalty.
On any view the financial (mis)management turned out to be catastrophic, but if you wanted to understand what happened, why wouldn't you ask the owner of the company?
And with regard to monthly cash flow accounts - if you were the RFL and weren't getting them, or they didn't add up, but you did nothing, would you also be staggeringly reckless?
If the administrator's figures are right, and the company went bust owing over £1.1m but that includes £375k due to OK, that doesn't tell you what the rest of the debt was at the date OK sold his shares. I suggest it will obviously have been less. The distribution shortfall was clearly a key problem as they clearly did not replace that money with other funding and it is no excuse, but it may have been predictable as may be the case that had the last minute distribution fine not been levied, and had the club instead had normal distribution funding, OKB would very probably not have gone bust when it did.
You are right to point out the pre pack omission FA.
One has to presumne (as little confirmation)that the club traded from 1 February through Calvert Moore and Watts firm.
At least until Moore they backed out following the RFL decision on points and special measures (no signings only loans for max 1 month)
Not sure on the Legal position for that month and it may be Wilson is not either.
He certainly does not seem aware that other bidders were been approached by the RFL as early as November when Moore & Co wanted to putOK Bulls Limited into administration then.
The RFL baulked....no way they said.
You tend to split hairs.
Northern Relic is entirely correct in what he says....He bought the assets of a company that had gone bust spectacularly.He did not buy the company but the point NR makes should not be lost in pedantics.
BBH Ltd was indeed spectacularly bust.
With declining crowds,reduced central funding income yet all the same (and more)overheads,the same wages bill it was therefore critical he kept up to date records to ensure that the CASH (in whatever form it was received by the company from whoever or wherever)was there to pay the bills.
Instead he just meandered along losing more than the previous regime.
The Report clearly states that Moore & Co (I suggest Calvert) took the right steps to reduce some of those extravagant overheads.
The interim report shows creditors in approaching £1.1 million.
It does not include the additional odd £700000 OK claims he is owed.
If it did the losses would be approaching a staggering £1.8 million in a little over 12 months.
I understand accounts may have been drafted to 31.8.2013 which show losses in the 12 months of £1.45 million.
No wonder he had a heart attack if he had not been keeping proper books and someone came in and told him that.
Retaining half central funding if they are accurate figures would certainly not have prevented insolvency.
Still massive shortfall as to what cash was needed.
Enter Whitcut/Green.
The entire sounbites from Moore/Calvert/Wilson suggest an attempt to pass this bankrupt shambles off onto some other unsuspecting purchasers as to the true state of the horror show.
I would use the word CON.
And hope you do not view that as racist.
You clearly like OK Fa.
And are prepared to give him all benefit of doubt.
I have seen situations as this in my career hundreds of times.
Completely out of his depth.
The early warning signs were there.
In the month he purchased the Bulls,Omar Khans restaurant was fined £20000.Given warning after warning by Enviromental Health re the rodent problem.They usually are very good in these situations and will work with anyone to sort the problem out before expensive Legal Action.Nothing was done.Then in the court case it was someone elses restaurant not his.....again passes a hospital pass to some other stooge to take the rap.
Do you not see the emerging pattern.
Pass to Whitcut (on paper)so when the brown stuff flys its not his fault.
Happened before.Lister Hotel.Do your research.I have.
Inexplicably linked as they have been (with Sutcliffe)in over 30 years.
I rest my case ma lord and invite my learned friend to take up the defence of Mr khan.
Moral.
You don't lose a million a year unless you have it to lose.
otherwise innocent people lose
Stop trying to defend the undefendable.
It"ll be all my fault next.
I did try warn Gerry Sutcliffe in September 2012.
The local paper tell me hes gone very quiet......on everything.
Wonder if Councillor Sunderland"s complaint to the parliamentary watchdog is biting.
The best man for this job would have been the Texan oil magnate.
I know he exists and has Bradford in his blood.
He threw money Avenues way to gently assist.
But the choice is made.
People who like to make lots of filthy money preying on the disadvantaged and poor.8 per cent a month on the never never never.
Of course I would not see OK hang.But let me remind you its little over 150 years ago that you could hang....for stealing a sheep.
How things have changed
