Post by Macmoish on Mar 5, 2011 7:45:59 GMT
Telegraph/Sandy Macaskill
And if Birmingham have financial concerns, again makes one wonder about how QPR will do/manage.
Birmingham City hit by financial concerns as Carson Yeung applies for £12 million loan for parent company
Birmingham City’s euphoria after winning the Carling Cup has been replaced by fresh concerns about the financial health of the club’s parent company.
Birmingham City owner Carson Yeung applies for £12 million loan to secure parent company's status
Owner Carson Yeung has applied for a £12 million loan to prevent “significant curtailment” of the company’s operations, using his own personal property as collateral.
Alex McLeish’s side play West Bromwich Albion at St Andrew’s this afternoon, but attention has again been drawn away from the club’s front line to their bottom line after a statement to the Hong Kong stock exchange revealed new concern over the club’s parent company.
“This situation indicates the existence of a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern,” read the statement, issued by Birmingham International Holdings, the investment vehicle through which Yeung bought Birmingham in 2009.
Although advisers to the Hong Kong businessman played down the implications of the statement, claiming it was poorly drafted, the confusion will concern fans already uneasy about how Birmingham City are effectively reliant upon Yeung’s willingness to use his own assets to shore up BIH.
McLeish and his players are due bonuses in the light of the club’s first major trophy win for 48 years and, the statement revealed, they will be due more if the club avoid relegation.
Latest disclosures to the stock exchange have revealed that the club already have debts of more than £29 million, of which £23 million is owed to HSBC. The club’s freehold land and buildings, including St Andrew’s, have been pledged to the bank, which has provided loans and working capital worth 77 million Hong Kong dollars.
Yeung is already trying to raise a further £25.5 million through a share placement, but he has now applied for a credit facility line of “no less” than HK$150m using a property in Hong Kong as an asset pledge.
The businessman pledged in writing all the money will be used to “provide sufficient financial resources” to allow the business to meet its liabilities and carry on “without significant curtailment of its operation”.
A Birmingham spokesman insisted that “there are no problems with the day-to-day running of the club. Birmingham International Holdings is seeking to raise capital to invest into the business”.
Meanwhile, Birmingham have been issued with a Football Association charge of “failing to ensure spectators didn’t enter the field of play” following scenes at the end of the club's Carling Cup quarter-final against Aston Villa at St Andrew’s in December. The club have until Friday to respond to the charge.
www.telegraph.co.uk/sport/football/teams/birmingham-city/8362595/Birmingham-City-hit-by-financial-concerns-as-Carson-Yeung-applies-for-12-million-loan-for-parent-company.html
And if Birmingham have financial concerns, again makes one wonder about how QPR will do/manage.
Birmingham City hit by financial concerns as Carson Yeung applies for £12 million loan for parent company
Birmingham City’s euphoria after winning the Carling Cup has been replaced by fresh concerns about the financial health of the club’s parent company.
Birmingham City owner Carson Yeung applies for £12 million loan to secure parent company's status
Owner Carson Yeung has applied for a £12 million loan to prevent “significant curtailment” of the company’s operations, using his own personal property as collateral.
Alex McLeish’s side play West Bromwich Albion at St Andrew’s this afternoon, but attention has again been drawn away from the club’s front line to their bottom line after a statement to the Hong Kong stock exchange revealed new concern over the club’s parent company.
“This situation indicates the existence of a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern,” read the statement, issued by Birmingham International Holdings, the investment vehicle through which Yeung bought Birmingham in 2009.
Although advisers to the Hong Kong businessman played down the implications of the statement, claiming it was poorly drafted, the confusion will concern fans already uneasy about how Birmingham City are effectively reliant upon Yeung’s willingness to use his own assets to shore up BIH.
McLeish and his players are due bonuses in the light of the club’s first major trophy win for 48 years and, the statement revealed, they will be due more if the club avoid relegation.
Latest disclosures to the stock exchange have revealed that the club already have debts of more than £29 million, of which £23 million is owed to HSBC. The club’s freehold land and buildings, including St Andrew’s, have been pledged to the bank, which has provided loans and working capital worth 77 million Hong Kong dollars.
Yeung is already trying to raise a further £25.5 million through a share placement, but he has now applied for a credit facility line of “no less” than HK$150m using a property in Hong Kong as an asset pledge.
The businessman pledged in writing all the money will be used to “provide sufficient financial resources” to allow the business to meet its liabilities and carry on “without significant curtailment of its operation”.
A Birmingham spokesman insisted that “there are no problems with the day-to-day running of the club. Birmingham International Holdings is seeking to raise capital to invest into the business”.
Meanwhile, Birmingham have been issued with a Football Association charge of “failing to ensure spectators didn’t enter the field of play” following scenes at the end of the club's Carling Cup quarter-final against Aston Villa at St Andrew’s in December. The club have until Friday to respond to the charge.
www.telegraph.co.uk/sport/football/teams/birmingham-city/8362595/Birmingham-City-hit-by-financial-concerns-as-Carson-Yeung-applies-for-12-million-loan-for-parent-company.html