Keith wrote:Not saying you are wrong, but 'how?' He would have to somehow restructure his other businesses, so that their debt became our debt, then Morecambe FC goes bankrupt, leaving his other businesses debt free and [presumably] solvent? BUT, to do that, he'd need our Board of Directors to sign up to those other debts, which they'd never do. Even then, I'm not sure if he could legally manage that?
Pretty sure there's a separate company, owned by Jason, which is lending the money to MFC, for which loans are being advanced by a lender, secured over the land and assets of MFC via legal charges.
A bit like PMG did with the 3g pitches and gym building.
If the loan repayments aren't made up the chain, the legal charge holder can call in administrators, to recover as much of their debt as possible, i.e. by selling the clubs land and assets to the highest bidder. Just as happened with the 3g/gym under PMG Leisure Ltd!
It may well be that Jason personally never invested anything in the first place, and just structured a deal to borrow money from a third party (bank etc) against the land and assets of MFC via a separate limited company.
In that case, he's literally nothing to lose by letting the club go into administration, all he'll lose is the future "profit" he makes between the intermediary company is paying to the lender and the inflated rate he charges MFC!
Heads he wins, tails we lose.
EDIT - it appears to be Bond Group Investments Limited, whose accounts show a 80% investment in MFC, financed by huge loans taken out to buy the club and then cover ongoing losses. Current deficit (i.e. loans and debts in excess of value of assets) over £2 million in debt - that's what is funding our ongoing losses!