While Arsenal continue to sell replica shirts, companies and banks that have stupidly financed Manchester Bankrupt’s dive into bankruptcy are now selling off the club’s debts. At a discount.
So if you thought that this season’s away shirt is a good deal at 50% off, how about some Manchester debts at 70% off the list price?
You can buy part of Manchester’s debt which is secured against the ground, players and season ticket sales, at 25% off the amount Manchester owe and must one day repay (if they are to stay in business).
Or how about £90m of unsecured loans which are going at 50% off.
Better there is the £152m “payment in kind” debt, on which the insane idiots of Manchester pay 14.25% interest – available at 70% off.
It must be said that Manchester B did not start this sale – they have their loans and they carry on trading. It is the banks that are trying to get rid of the loans – in some cases because they just need some money, but with the unsecured debt and payment in kind debt, because they doubt that they will ever be paid. In short Manchester Bankrupt is seen in the financial world as a bloody big risk.
Why this is such fun for any fun-loving Arsenal funster is that anyone can buy these debts, including what the Guardian today called rather coyly “the merciless and ruthless” (gangsters and the Mafia to you and me), “who would leap punitively on United if the club were to breach any covenant, however minor.”
What this also means is that no one other than the club and the debt holders will know who holds the debt.
Oh what fun what fun what fun
(c) Tony “with a smile on his face” Attwood 2009.3
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