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newjersey2

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This might seem a bit of a daft question, but could anyone please elaborate on as to how LFC can be up for sale for £loads, by the americans who want out, but the debt rests not with them, but with the club? - have they somehow bought into a debt situation to simply asset strip it? - kev

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This might seem a bit of a daft question, but could anyone please elaborate on as to how LFC can be up for sale for £loads, by the americans who want out, but the debt rests not with them, but with the club? - have they somehow bought into a debt situation to simply asset strip it? - kev

Easy. Buy a company in debt. Pile on even more debt, whilst drawing lots of dosh yourselves. Sell it on. Quids in. I think.

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This might seem a bit of a daft question, but could anyone please elaborate on as to how LFC can be up for sale for £loads, by the americans who want out, but the debt rests not with them, but with the club? - have they somehow bought into a debt situation to simply asset strip it? - kev

Imagine instead LFC had lots of cash and no debt. What would you expect a buyer to pay the owners then? I think you are struggling with the difference between an enterprise value and the shareholders' equity value.

Presumably in this case the Americans bought LFC using a lot of debt. They then repaid most of this acquisition debt by loading debt onto the LFC balance sheet and withdrawing the cash (which they can do, as the owners). Or they did it all in one step at acquisition and their lenders were OK with the LFC cash flows and assets being the security. It's a leveraged buy out model.

What was your question again?

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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