I don't think there's any prospect of dividends actually being paid

I presume the plan is to roll them up into the value of the prefs such that if, or when, he sells, he can attribute value to them.

Whether he obtains any value is another question, of course, but if they don't exist, he definitely can't.

There are other factors too; e.g. tax treatment in the US of interest vs dividends on prefs, UK withholding tax treatment, and also financial fair play type rules or whatever.

I'm not sure the rate is overblown; would a financial institution even give us an unsecured loan of that amount? I'm not so sure. What were the interest rates on the loans that were secured against parachute payments? I'm too lazy to look it up, but I think they were surprisingly high.

Posted By: SimonOTBC on October 9th 2024 at 11:33:08

Message Thread

This "explainer" is just a copy and paste from the shareholders' document (NCFC) - norwaay, Oct 9, 07:52:28
- To be honest, the exact mechanics of all this dont matter that much (NCFC) - Under soil heating, Oct 9, 09:53:57
  - I'm fine with getting my 83 shares diluted, considering the alternatives (NCFC) - Kev, Oct 9, 19:20:33
  - And also to Delia and Michael (NCFC) - Old Man, Oct 9, 10:30:44
  - Good summary - not sure about the tax bit though (NCFC) - SimonOTBC, Oct 9, 10:19:53
    - Not so fast....Some financial decisions can be made... (NCFC) - usacanary, Oct 9, 11:01:22
      - Yes, fair enough (NCFC) - SimonOTBC, Oct 9, 11:27:14
  - Hi Mr Attanasio (n/m) (NCFC) - Jumbo1, Oct 9, 10:08:52
  - Agree. But as I said... "explainer" (n/m) (NCFC) - norwaay, Oct 9, 09:55:41
    - It's clearly an area Connor doesn't understand (NCFC) - SimonOTBC, Oct 9, 10:21:26
    - Conner should have come to me! Feel free to copy my post! :-) (n/m) (NCFC) - Under soil heating, Oct 9, 09:57:10
      - 😄 (n/m) (NCFC) - norwaay, Oct 9, 10:00:38
    - ... (NCFC) - Under soil heating, Oct 9, 09:56:40
- Most people will have no real idea what it means (NCFC) - norwaay, Oct 9, 09:45:07
  - VMT (NCFC) - SimonOTBC, Oct 9, 10:24:16
  - Sorry - meant for The Grump (n/m) (NCFC) - norwaay, Oct 9, 09:45:55
- On Monday the U21s played Reading. (NCFC) - Henclrikus, Oct 9, 08:34:50
- Doesn’t he say in one line (NCFC) - Dog, Oct 9, 08:14:29
  - Like most "investors" he assumes the risk but.. (NCFC) - usacanary, Oct 9, 11:09:19
    - I don't think there's any prospect of dividends actually being paid (NCFC) - SimonOTBC, Oct 9, 11:33:08
  - shares are equity, not debt. Dividends are not debt repayments. (n/m) (NCFC) - Tony Martin, Oct 9, 09:08:06
    - I get what Dog is saying. (NCFC) - NxNW, Oct 9, 09:26:00
      - That would depend on the payment terms though (NCFC) - SimonOTBC, Oct 9, 10:28:12
      - Not having access to all the docs, I dont think this is plan (NCFC) - Under soil heating, Oct 9, 10:07:07
    - Think there are PSR considerations as well… (NCFC) - loz, Oct 9, 09:09:38
- Perfectly clear (n/m) (NCFC) - TheGrump, Oct 9, 08:08:53

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