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Tony Xia (no longer involved with AVFC)


Vancvillan

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2 hours ago, blandy said:

I’m not confident the premise of your question is completely right. In terms of Villa, FFP etc. an owner can convert debt to equity (Randy Lerner wrote off all his loans to villa this way). If a bank was to do have done similar, then that bank would now own a percentage of villa and that would get announced. So basically I don’t believe that has happened at all. What’s happened is that TX has converted loans to shares. It is likely/possible that the funds used have come from another company in China, ultimately, but it’s Xia who invested the money

Sorry Blandy for clarification I was quoting this part of the site I found to try and explain debt to equity 

"Debt-to-equity swaps are common transactions in the financial world. They enable a borrower to transform loans into shares of stock or equity. Most commonly, a financial institution such as an insurer or a bank will hold the new shares after the original debt is transformed into equity" and in the examples they give above they used the words, 'Bank, Insurer or Institution' What I wasn't clear on in my post when saying "I don't know who holds the shares" I guess what I ACTUALLY meant was, I don't know where the funds have come from beyond Xia to do the equity to share swap (as I'm pretty certain it was't his cash) I do suspect though, it was the rumored 50m loan he was approved to access by the Recon board that was listed on the Chinese SE last month?  That in turn would be a bank loan, which he has said we don't have any, as in the club, so I'd assume Recon have taken that debt/risk............ If that makes any sense at all and I haven't made it all the more confusing? ?

So yeah what Blandy said ?

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4 hours ago, A'Villan said:

Apparently one of us has Aids @Amsterdam_Neil_D.

You are making it sound a lot harsher that it is,  the initial diagnosis was I agree a bit of a shocker but my post is on the whole quite balanced and absolutley riddled with emotion and I even provided a long term care plan.

It's "Bad Aids" also,  which is worse in VT world as we all know.

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2 minutes ago, JAMAICAN-VILLAN said:

To be fair if someone told me a year ago Wolves, Huddersfield, and Brighton would be in a league above us I would have pissed myself.

Agreed and add to that the absolute silly money these clubs have got to spend on single players.  We are miles away.  

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3 hours ago, blandy said:

I’m not confident the premise of your question is completely right. In terms of Villa, FFP etc. an owner can convert debt to equity (Randy Lerner wrote off all his loans to villa this way). If a bank was to do have done similar, then that bank would now own a percentage of villa and that would get announced. So basically I don’t believe that has happened at all. What’s happened is that TX has converted loans to shares. It is likely/possible that the funds used have come from another company in China, ultimately, but it’s Xia who invested the money

This is how I understand it as well. That Xia is still formally the sole owner. If someone else had been allocated shares, then we would have seen that in the Companies House records right?

So my guess in that someone loaned money to Xia --> Xia loaned that money to Villa --> Xia converted his loans to equity.

Now what is most interesting is how much Xia has borrowed, i.e. how much can he loose when he sells. My fear is that he borrowed up to 100%, then he simply can't sell for less unless his other business can cover the loss. If reports are true that his other business is doing badly, then he simply doesn't have much choice, he must stick with Villa.

My hope is that he wont asset strip us. Probably the assets alone don't add up to what he bought the club for, it was probably quite much goodwill value when he bought us. So his best chance of saving himself is getting the club back on its feet, get the finance in order, have a competitive squad and have a hope of making the Premier League, that way someone could pay what he payed and he can sell the club. The tough part is that this probably will take some time.

So hopefully it's not about asset stripping and running away, but making business decisions to get the club on it's feet, which like any business will mean short time pain (getting rid of staff, selling what is surplus etc) before we can go forward again.

 

Edited by Keener window-cleaner
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23 minutes ago, Keener window-cleaner said:

So hopefully it's not about asset stripping and running away, but making business decisions to get the club on it's feet, which like any business will mean short time pain (getting rid of staff, selling what is surplus etc) before we can go forward again.

I fear that’s a forlorn hope, Keener. He appears to be making business decisions to raise money from just about anywhere, to sort of try and plug the gaping holes in the dam. It’s not so much getting the club on its feet as trying to stop it sinking without trace into the deepening mire.

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25 minutes ago, blandy said:

I fear that’s a forlorn hope, Keener. He appears to be making business decisions to raise money from just about anywhere, to sort of try and plug the gaping holes in the dam. It’s not so much getting the club on its feet as trying to stop it sinking without trace into the deepening mire.

I'm afraid you are right. My hope is that once we have gotten the wage bill in order we can start building again. Hope there is something left to build on though.

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So with the best will in the world, we have an acting CEO who is a novice in this sector (he has never been the CEO of a football business before) who is juggling finding funds and selling players. In the latter case he has less than a month to do so and so far he hasn't sold one.

If he doesn't manage to do these things in the next 3 weeks, Aston Villa quite literally may go out of business.

Righto then, seems like I need to lower my expectations even further for how this year is going to go.

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By the time xia is finished gwtting the club in more debt we will be worth as much as Shrewsbury town.

This cretin needs to sell up and let someone with half a brain cell who knows how to run football businesses in.

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13 hours ago, JAMAICAN-VILLAN said:

To be fair if someone told me a year ago Wolves, Huddersfield, and Brighton would be in a league above us I would have pissed myself.

A year ago?  I wouldn't be that shocked at all.  5 years ago?  Yeah, fair.

 

(I quite like change at the top level, though... just not when it involves us not being there!)

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11 hours ago, ciggiesnbeer said:

So with the best will in the world, we have an acting CEO who is a novice in this sector (he has never been the CEO of a football business before) who is juggling finding funds and selling players. In the latter case he has less than a month to do so and so far he hasn't sold one.

If he doesn't manage to do these things in the next 3 weeks, Aston Villa quite literally may go out of business.

Righto then, seems like I need to lower my expectations even further for how this year is going to go.

He's also doing it from Bejing and 'weibo' messages to Ho.

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13 hours ago, ciggiesnbeer said:

So with the best will in the world, we have an acting CEO who is a novice in this sector

We're going to get done up the Rongtian, for sure.

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On 07/07/2018 at 11:55, villabromsgrove said:

I think Xia has made it plain that we're in the sh*t, but he's not prepared to sell the club until he's converted our best players into cash. 

It's also plain that he can't afford to sack Bruce, so he'll insist on SB replacing his best players with our young "wonder kids" in the hope that Bruce will walk.

On the plus side, Luke Organ writes a lovely letter doesn't he.

Let the asset stripping begin, as Xia continues "to preserve the smooth running of the club without compromising the standards of this great institution" .... Too late for that Tony!

So, Xia's going nowhere till he's got a chunk of his money back, and it's Luke Organ's job to put a positive spin on it!

 

Luke Organ being with us isn't a bad thing. As he was a key member of the board at Wasps who took them from nearly going out of business where they had to register the retired legends as players just so they could have a full compliment of substitutes to where they are now challenging for the league title every season. So hopefully he can help steady the ship here and we'll come out the other end it a reasonably good state.

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https://www.birminghammail.co.uk/sport/football/football-news/exclusive-milan-mandaric-interested-taking-14907227

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Milan Mandaric is interested in taking over at Aston Villa and has already seen an offer knocked back, it can be revealed.

BirminghamLive has been told that the former Portsmouth, Leicester City and Sheffield Wednesday owner registered his interest last month and followed it up soon after with a bid.

It’s our understanding that Tony Xia spurned those advances in the hope of finding another way out of the financial mess that Villa currently find themselves in.

A Mandaric-led consortium wanted 51 per-cent of control and were prepared to meet Xia’s financial demands.

But they’re yet to make a breakthrough and are now understood to be weighing up the next move.

Mandaric has taken over struggling football clubs in the past, earning him the nickname, Mr Fixit.

At 79 years of age, he’s vastly experienced and is still involved in football as the president of Slovenian outfit Olimpija Ljubljana

Reasons for the latest rejection are yet to be revealed.

Meanwhile, there has also been plenty of other interest in the club.

As reported exclusively by BirminghamLive earlier this month, a blue-chip American firm saw a £30m bid for 30 per-cent of control knocked back.

These figures also matched Xia’s financial demands and were only submitted after extensive research into what the owner was prepared to sacrifice.

A takeover offer from the same group was also under consideration but never got to that stage due to the initial rejection.

So why was it dismissed?

Well, Xia claims in his statement that he didn’t know the ‘source of the money’ - yet it’s our understanding that it would have been made clear, had he asked.

On top of that, finance experts have told BirminghamLive that regulations are put in place to prevent money laundering when dealing with high-profile exchanges of ownership and control.

Therefore, any money that comes through the formal banking system, which these funds would have been, have to be vouched for by the bank that is sending it.

So those claims in his statement remain a mystery.

Another side to the story is that Xia would prefer to source investment from his homeland.

His priority appears to holding onto the club, though, and finding a funding solution himself.

 

So more BS from Xia with his didn't know source of cash comments ..

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49 minutes ago, Nabby said:

Xia is a fraud and a clown Who has absoluteky no idea of what he is doing. He will probably sell the day of the transfer window closing.  Mug

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At first I automatically associated Mandaric with Portsmouth and it being destroyed.

However after seeing some of the comments by Wednesday and Leicester fans it seems he is actually quite respected and a safe pair of hands.

Also very experienced at fixing broken clubs.

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