Calculate the interest

Quoted from Fillipe Noche

Far too simplistic in your view/opinion

If he never wanted the money back, then the money would never have been called loans. They are loans and the very essence of a loan is that one day it has to be repaid.

You also have to factor in that theses loans are legal loans listed in the accounts. You can’t just wipe them out without accounting for them. They form part of the business liabilities

Is it too simplistic or calling out what he has said, the loans will be paid back, they agreed on that.

The loans are against club assets so in fact interest isn't due is it if the loan is tied up which it is as he now owns the club assets. Fenty wants the loans paying up sooner than what was offered as the new consortium have wealthy men involved, is Fenty not wealthy any more, is he desperate, and the benign loan is no longer benign when there is a timescale put on it. Fenty could help the club out here for a change and say, you know what, pay me back 100K a year until the loans have been repaid or you know what, you the new consortium purchase X amount of shares and I will convert an equal amount of my loan in to shares to match you, is that too simplistic or does Fenty want the readies, remember what happened when Parker bought shares as a means to putting money into the club and what was agreed by Fenty.

I noticed you brushed over the bit about getting £200k of shares of the trust that he will cash in on making more out of that than any interest he would have got out of at any borrowing rate offered by the bank. So not all bad Fenty eh.

It all seems like the actions of a desperate man who would rather cling to power even though he has been called out,called out twice now by the new consortium. Just go John and give the fans a bright new start to 2021.

Quoted from blundellpork

To answer question 2, assuming a consistent loan of £1.5m, at a consistent 4.5% interest cost (noting base has moved between 0.1 and 0.75% over the last decade), the cost over a 10 year period would be £675,000.

To then answer question 1, there will have been some years that our accounts show this could have been serviced, and some where it couldn’t. As has been posted many times, c £800k has been repaid in recent years which shows that over time they interest could have been serviced. However, at commercial lending rates, less of the capital sum would have been paid down.

How the debt has built and whether it was right have been done to death, but the interest savings from the benign loans vs those incurred commercially would not be insignificant.

Spot on that mate, and maybe even a bit conservative.

Answer me this if you can also. Whilst the accounts show loan repayments at various stages, do they detail those lump sum repayments as being repaid to John Fenty?

Did Mike Parker and the Mullins provide loans to the business too? If so could all or some of those repayments detailed in the accounts be repayments to them? Genuinely don’t know the answer to that question. But it’s probably wrong to assume that any loan repayments paid at any stage were money paid back to John Fenty. I’m happy to have this aspect clarified though

Quoted from Marinerz93

Is it too simplistic or calling out what he has said, the loans will be paid back, they agreed on that.

The loans are against club assets so in fact interest isn't due is it if the loan is tied up which it is as he now owns the club assets. Fenty wants the loans paying up sooner than what was offered as the new consortium have wealthy men involved, is Fenty not wealthy any more, is he desperate, and the benign loan is no longer benign when there is a timescale put on it. Fenty could help the club out here for a change and say, you know what, pay me back 100K a year until the loans have been repaid or you know what, you the new consortium purchase X amount of shares and I will convert an equal amount of my loan in to shares to match you, is that too simplistic or does Fenty want the readies, remember what happened when Parker bought shares as a means to putting money into the club and what was agreed by Fenty.

I noticed you brushed over the bit about getting £200k of shares of the trust that he will cash in on making more out of that than any interest he would have got out of at any borrowing rate offered by the bank. So not all bad Fenty eh.

It all seems like the actions of a desperate man who would rather cling to power even though he has been called out,called out twice now by the new consortium. Just go John and give the fans a bright new start to 2021.

Fenty does not own the assets of the club no. The PLC owns the assets.

He may hold fixed and floating charges over those assets in the event the club goes bust. That’s a usual requirement for any lender. But that certainly wouldn’t benefit him unless the club went bust, and he’s never shown any appetite to take the club under financially. Even then, he would be behind chief creditors in the pecking order such as HMRC

Quoted from Fillipe Noche

Oh my word that is hysterical

Do you know you are talking about a man with a high net worth in excess of £50 million

And you are suggesting he is motivated by free tickets and car parking spaces 😂😂😂

Do you know how funny that sounds 😂😂😂

It’s a shame his moral worth is so much lower than his net worth

Quoted from Fillipe Noche

Spot on that mate, and maybe even a bit conservative.

Answer me this if you can also. Whilst the accounts show loan repayments at various stages, do they detail those lump sum repayments as being repaid to John Fenty?

Did Mike Parker and the Mullins provide loans to the business too? If so could all or some of those repayments detailed in the accounts be repayments to them? Genuinely don’t know the answer to that question. But it’s probably wrong to assume that any loan repayments paid at any stage were money paid back to John Fenty. I’m happy to have this aspect clarified though

I haven’t looked at the accounts before replying, but from memory the only loans in place are from Fenty, whereas the support from Parker and Mullen were via shares (and Mullen also contributing towards OP). As such, I believe those Director loan repayments have gone to Fenty.

Quoted from Fillipe Noche

Spot on that mate, and maybe even a bit conservative.

Answer me this if you can also. Whilst the accounts show loan repayments at various stages, do they detail those lump sum repayments as being repaid to John Fenty?

Did Mike Parker and the Mullins provide loans to the business too? If so could all or some of those repayments detailed in the accounts be repayments to them? Genuinely don’t know the answer to that question. But it’s probably wrong to assume that any loan repayments paid at any stage were money paid back to John Fenty. I’m happy to have this aspect clarified though

Now you’re just being obtuse John.

Parker did nor make a loan. He bought the shares as you well know. Millin leant a relatively small amount which was paid back when he left the board.

Here’s a question for you El Noche:

How much of the loans were from Fenty owned companies and therefore could avoid on tax liabilities? That could save far more than any amount of interest.

Ok after an initial post and 23 responses, we seem to have

1. Fenty is still owed £1.5 mill
2. If he had charged 4.5% interest he would have earned £670k or so which he has waived.
3. The overall debt which peaked at well over £2 million has been paid off in part.

Cutting to the chase if the consortium agree to pay the £1.5 million what’s the gripe from fenty?
The fans and consortium are apparently ok to ignore all the money Fenty has wasted over the years and the £200,000 of free shares he seems to have magically acquired from Mike Parker.so long as it gets rid of him.

John and Fillipe, just sign the takeover papers and stop whinging.

Quoted from blundellpork

I haven’t looked at the accounts before replying, but from memory the only loans in place are from Fenty, whereas the support from Parker and Mullen were via shares (and Mullen also contributing towards OP). As such, I believe those Director loan repayments have gone to Fenty.

Fair enough and I suspect you may be right. Be nice to know though

Your little conservative calculation is quite revealing though.

I wonder if any other potential owner over the years, Mike Parker and all, would have been prepared to forgo that amount of interest income had they have hung around as long as Fenty has

People throw away the term too loosely that there wouldn’t be a Grimsby Town now if it wasn’t for Fenty. That quick calculation of zero interest charges alone put it all into a bit of perspective

When you think about it, when it comes to new owners we are actually looking for someone, or a consortium that are prepared to

A: buy the majority shareholders

B: put in £1.5 million of loans over the next three years, without expecting any capital sum repayments unless the business can afford it. And will not charge us a penny in interest.

If that is what they are willing to do, then that’s great. Welcome aboard.

That makes us just stand still though and maintains the current financial status quo. Is there anything else that they are prepared to bring to the table to take us forward. Because of they don’t, and if we don’t move any further forward, then there’s gonna be a lot of fickle keyboard warriors quickly giving them the same sort of treatment that they are giving John Fenty and the present board of directors

Quoted from KingstonMariner

Here’s a question for you El Noche:

How much of the loans were from Fenty owned companies and therefore could avoid on tax liabilities? That could save far more than any amount of interest.

You tell me ?