Quote: M@islebugs "Sorry Adey I'm quoting this post but replying to your earlier one as I'm on an iPad in the north east and can't quite work the thing out.
Anyways an excellent summary of the worst case scenario of administration, all of which are real perils, particularly not paying local businesses. Didn't Glover agree to pay some/all of these debts when he took over at Wakey much to his credit.
I think the following needs to be factored in alongside your analysis.
1, The pledge fails. This is a strong possibility in my view. Were we to start next season with a shortfall between projected income and commitments what is the responsibility of the board? Whether this is strictly speaking trading whilst insolvent I think Hood is too decent a bloke to run up bills without the money to pay them.
2, In this scenario, Hood would approach the shareholders for support. If he didn't get support he'd have to resign. A new board would be constituted but without significant financial support this is rearranging the chairs on the Titanic. You have suffered a breach of trust with Caisley, and believe him to be planning a return, but without financial support how would he not find himself in the same situation as the present board.
In a few weeks we shall see the support for the pledge and this will make things clearer. The status quo feels like 'managed decline' to the point our biggest asset, our support base is crumbling. The alternative is a leap into the unknown which you outline above. Walking home last night I'm really not sure which looks the worse.'"
All seem perfectly reasonable scenario points to factor in, to me.
And what that analysis also brings out increasingly clearly though, I suggest, is the importance of Pledge II?
