The board of Birmingham International Holdings Limited has announced they have entered into an exclusivity agreement in relation to the purchase of shares in Birmingham City Football Club.
The statement does say that the terms of the investment are subject to further negotiations between the Receivers and Trillion Trophy Asia Limited and that it is not certain that this will result in control of the club being changed.
The Receivers and TTA have agreed that for a period of 24 months, the offering party have the time to consider and ascertain its proposed investment. It is also a period in which the two parties can enter into prolonged discussions about what the club is worth to both parties.
Under the terms of the exclusivity agreement, TTA have exclusive rights to the club for 24 months. This period can be changed by agreement of the parties so this could drag on for longer or be concluded shortly, it is completely up to the parties involved.
During the exclusivity period the Receivers cannot secure any loans against the club.
Now to the bit that everyone is most interested in. Does this mean money for the club? apparently so.
TTA must make available to BCFC a loan facility of HK$153,000,000 and the deposit of not more than GBP880,000 as security for the loan granted by HSBC in the UK. There are other loans mentioned in the agreement as well.
So if the club were waiting on this deal to be announced in order to finally start some signings then it can now go ahead by the sounds of it. The Rob Kiernan paperwork was ‘delayed’ before he could sign it, did we miss out on him as the finance wasn’t in place in time?
The money borrowed by the club in this agreement is secured against St Andrews. So should the agreement not go through I imagine the company would seek to recover its losses by the sale of the ground.
It would seem that the sale of the club has begun. There are plenty of worries that Carson Yeung will still legally derail the bid, but as he and Pannu failed in their bid to block the Receivers from taking control of BIHL, I wouldn’t share this worry until we actually hear something legally concrete from HK – which we have not.
Money now doe does appear to be available for the club to bring in some players. Was this the hold up everyone had been talking about? I don’t know, Blues signed players thick and fast last year and now is the time to be bringing in some faces ahead of next weeks return to training.
Trillion Trophy Asia Limited seem a pretty faceless company at the moment, but they clearly want a football club and that club is going to be Birmingham City. Some of the loans they have given the club have been completely unsecured, which to me shows their intention of keeping the club going whilst they sort out buying BIHL out. A unsecured loan is pretty risky and to me shows a desire to do a deal.
I don’t really want to pay too much attention to the 24 month period that TTA have to purchase the club, it clearly states that it can be longer or shorter by agreement of the parties, so that to me is just a guess of how long each party felt comfortable with. As to how long it will actually take, maybe even they don’t know yet.
What is apparent is that the Receivers feel that it is legal and permitted to progress with the sale of the club, and they are doing so.
Attention: Vital Birmingham are looking for writers/bloggers to join our team! After a period of commitment you will also be invited to become a Co-Editor on the site, if you`re interested in helping us click Here
Source – Click Here
What do you think? Leave a Comment Below!
For business enquires please click Here
Join Vital Birmingham
It’s easy to REGISTER HERE, simply click the link and enjoy getting involved!
