BULLS CHAIRMAN CLARIFIES CLUB'S BANKING RELATIONSHIP

Quote: Adeybull "A debenture is a floating charge. Which, by definition, is over assets that are NOT fixed, like property, but change from time to time.

You secure a loan on specific property by means of a fixed charge (mortgage).

At the time the debenture was put in place, there WAS no property asset to give a fixed charge over.

And one was never granted even once there was. (Source

Interesting then that Hood states that the debenture was against 'all of the Club's assets in [iwhatever[/i form'.

Your argument seems to hinge on whether the lease is a fixed asset or not? I would suggest the Bank's view is that it is not and therefore would come under the terms of the original debenture as suggested also by Hood's statement?

If your argument is right Adey and the Bank had no reason to believe the lease formed part of their security against the credit line they were offering, your position also seems to contradict another part of Hood's statement where he states:

"the bank now had substantial extra security in the form of land and buildings worth multiple millions of pounds"

I could give them the benefit of the doubt, but this statement doesn't help clarify things, so perhaps you should start drafting their statements on these issues.

Ultimately I'm afraid this still looks to me like poor financial management - not discussing the RFL purchase of the lease with the Bank and the Bank withdrawing credit as they're entitled to do (unfortunately).