Originally Posted by
MickG0105
I don't think that it was a ten year plan but it is notable that given current circumstances VA has managed to reacquire 100 percent of Velocity for significantly less than half of the earlier sale price.
They raised the $700 million purchase price plus the $11 million in transaction costs plus sufficient to cover KS's bonus payment in an unsecured bonds issue that they never had to make a coupon payment on. They'll end up settling with bondholders for what? 20 cents on the dollar. That means that they will have reacquired that 35 percent stake in Velocity that was sold back in 2014 for $355 million for around $150 million.
Funny how things have worked out, Velocity not being part of the Voluntary Administration and all.
OK I'll be the financial bunny:
- who "owns" velocity and why (if bought back by VA) is it not part of the VA adiministration?
- who, if anyone, primarily benefits from velocity being outside the VA administration ( as you assert).
Finally simple yes/no: will there be a VA2?
I personally believe the administrator will keep finding financial blackholes and will end up in receivership/liquidation.... whatever.
More so wonder if the creditors will accept anything like 20cents in the $ and let others walk away with the entity/assets to be stripped, force receivership and get a better result (maybe?) and let the asset strippers eat ****.
From memory in the AN days one of the lead characters, upon departing these shores after failure to acquire/strip, was rather blunt and rude to the QF staff assisting his departure because of their "opportunity lost".
Cheers