Often Partisan

The Carson Summons – an OP Video Podcast

Today the High Court heard the summons issued against the Receivers of Birmingham International Holdings by the “Carson faction” within BIH.

Key points:

  • Carson’s legal team claims he has HK$100million (about £9mil) available from third parties to invest in BIH to fund the club next season – this is about half BCFC’s turnover and would keep it afloat and not much more
  • Receivers claim sale of the company or the club is necessary due to parlous state of the company
  • The judge has adjourned the hearing for 28 days to allow both sides to file affadavits
  • An announcement will be made to the Stock Exchange

Edit 16:00 01/04 HKSE Announcement here

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68 Responses to “The Carson Summons – an OP Video Podcast”

  • asif says:

    and so it continues. could be good news as it gives 28 days to find a buyer

  • ChrisG says:

    So during the next month are the interested parties able to do any due diligence in respect of buying the club or is everything on hold for the next month or so?

    • almajir says:

      Don’t actually know. I suspect that there will be some progress but I think it would be more to do with sorting things out with the HKSE than with respect to due diligence – no okay from the HKSE, no sale regardless of how much due diligence is done

      • ChrisG says:

        Thanks Dan

      • Adam True Blue says:

        I assume that if we lose HKSE listing then the HKSE will no longer have a vice like grip over us and there would be nothing preventing a sale? To be no longer on the HKSE would be best all round for BCFC wouldn’t it?

        • almajir says:

          It would, but it would mean shareholders lose everything – which is the antithesis of what EY’s remit is.

  • AndyW says:

    If Goldin Financial are responsible for the solicitation of these bids, then I think it’s safe to assume Carson will know all about them? And I wouldn’t be surprised if he was directly involved with one or more of the bidders. The next 28 days could be quite interesting?

    • almajir says:

      why would it be safe to assume Carson will know all about them?

      • AndyW says:

        Well, given that Carson is a major shareholder in BIH, and BIH have requested that Goldin Financial solicit the bids on their behalf, then it seems a reasonable assumption that he is going to know something about them? If Goldin Financial haven’t had anything to do with the bids then he obviously won’t.

    • Mickey07 says:

      (Holds head in hands) unbelieveble jeff,the most bonkers thing I’ve ever read on here.jeez.

  • Agent McLeish says:

    So I’m assuming that the current court order that the receivers were appointed under is unchanged and remains in force?Therefore they still retain the powers that they were originally granted for at least the next 28 days.

  • Blue Steve says:

    I am surprised you think that Carson will eventually give share holder approval given all the moves he has made to not sell the club. Or do you know something I don’t.

    • almajir says:

      If things keep failing he has to compromise sooner or later, doesn’t he?

      • Mezz says:

        Lets be honest, he is a gambler and suddenly doing a compromise to me would seem out of character

        • almajir says:

          Why?

          Any good gambler knows sometimes you have to walk away from the table with enough of a stake to play again.

          • David says:

            That is assuming he is a GOOD gambler.

          • Ted says:

            That’s not a very Chinese approach though is it Dan? Carson would prefer to save face than save money. The Chinese ethos is business is NEVER give up or walk away. This whole stupid farago is all down to pride, namely Carson’s and Pannu’s.
            Full disclosure here: I worked and lived with/for Chinese people for many years and mean no respect to them. Quite the contrary. Just don’t expect CY to walk away easily.

          • almajir says:

            You prove my point Ted.

            Give him a reason to walk away which saves his face…

  • Bluenosesol says:

    Slightly confused in so far as we have comforted ourselves by reports including a statement from GR, that the club are not dependant on cash support from BIHL. I.e. the club can match income versus expenditure within the confines of BCFC operations. (Assume £20m to run the club on approx. £20m of income). If that is the case, then surely a 9 million cash injection is not 50% of the operating funds but is potentially a surplus cash injection? That could be the difference between a team treading water and a team competing for the play offs?

    • almajir says:

      Simple statement of fact – there is a 4.4million hole in BCFC’s accounts (as per the account published by the football club in December). The club requires investment to be able to compete next year – 9million would fill the hole for this year, and pay off next year at the current level.

      Make no mistake, we’ve got money now but the club DOES need investment soon. EY made it clear that they have to sell due to the parlous nature of BIH.

    • chris says:

      There will be an £8 million reduction in turnover as the parachute payments have now finished, so unless someone makes the difference up it means no improvement of the £5k wage cap and maybe even more cost cutting

  • RednalBlue says:

    Good morning Dan and thanks again for the latest update.
    Do you think E & Y could approach Mike Wiseman in an advisory role regarding potential bidders due to his knowledge of football and love of Birmingham City Football Club, as he would look after the interests of the club on behalf of the fans?
    Also, is it possible to have a section on here dedicated to match days where us fans can chat before/during and after that days game?
    Kindest regards as always,
    Sam. KRO.

    • StaffsBlue says:

      I can almost hear the answer now… This is not a forum, there are a few good forums around if you want to chat. :)

    • almajir says:

      a) no idea but maybe someone is advising them as it stands… I believe Panos is in HK right now.

      b) Absolutely not, sorry. I have no time or inclination to run a forum – I’d recommend SHA or BCFC Freeforums

      • Bluenosesol says:

        Hope Dan doesn’t mind me observing that people tend to use the last posting by Dan on whatever subject as a place to muse over the next match and then discuss the game post event.

  • Tony E says:

    CY could come forward with £90m and I would still want rid. The thought of Pannu lording over my club again, for me, would be a nightmare.

  • paul from Oz says:

    From a share holders point of view, this is good new, with in the next 28 days a plan to float BIHL and be viable to trade will be required, CY and his side does not have the money or he would have brought more shares, it’s just a way of extending time till all options are look at. EY number one option will be BIHL to be sold to a group with a majority holdings, EGM of share holders to put all options to, majority vote wins the day. I would think only the China group have the money and use of the stock listing, can see them put money into the club, bad side, the club with be promoted in China to sell merchandise and may see a few Chinese players, weather or not this is a good thing for Blues only time will tell, still say new owners by next season.

  • chris says:

    At what cost will Yeung’s mates saddle OUR club with more debt.
    If we are struggling to pay back £4 million why the hell do we want another £9 million debt dragging the club closer to extinction.
    I suspect whoever is loaning this money may well take the loans back as shares meaning Yeung and his mates will then own over 50% of the club and will once again have full control, even from his prison cell.

  • David says:

    So, if Ernst and Young win this case, bids will go in and someone will come out on top, and in the end, Carson will have to agree to sell.
    If Carson wins, he will invest £9million which will fill the holes and BCFC can continue in a scraping and saving way next season.
    Both of these are not the absolute disaster of insolvency or bankruptcy, so yes it is all up in the air, but it seems that either way, BCFC will exist next season.

    Is that basically right?

  • Blue1973 says:

    It’s probably going to end with Yeung having to compromise eventually. Ultimately, we need BIHL to be taken off the HK stock exchange once sold as a whole, re – structured and then either returned to the AIM in the UK or owned completely by a new owner.
    The sooner all links are severed with Yeung and HK the better.

  • zxcv says:

    Dan thanks for a excellent summary of the hearing this morning. I think the actions and words of the court tell us a lot more than just the adjournment, be interesting to read what comes out of the announcement later on. I think giving both sides just 28 days to file their case indicates that the judge thinks that not much time is needed and in all honesty probably wanted to dismiss it right there and then. I think if this guy wants to keep throwing his money away like this on what I think is frivolous appeals then his 9 million won`t be taking that long to dwindle considering his other appeals going on and any more in future that he may need. But the main thing for is this will leave CY in no doubt at all as to the courts siding on the sale of the club and surly his legal team must now tell him as much.

    • Adam True Blue says:

      CY dismisses any people / parties that do not go along with what he wants, lets see how long his current legal team survive!

  • neil says:

    Hi Dan thank you for pod cast your soon be making films/ Dan do you have any ball park figure approx what would be the the fees for Ernst and Young with all court cost and so on surely there fees would eat in to 9 million of investmest and for sure they will want to be payed.?.

    • almajir says:

      Will and Steve reckoned £2mil to £3mil for them up to the summer

      • DoctorD says:

        Dan — I thought there were just three people from E&Y doing this work? In which case that’s more per head than Pannu was paying himself as director. Or is there a whole massive E&Y team in addition behind the scenes?

        • almajir says:

          Three Receivers yes – and a veritable army of admin clerks, solicitors, barristers etc etc

  • zxcv says:

    I think a lot now is going to depend on Carson Trial appeal, lose that then I think that’s game set and match as his funds will remain frozen for at least around 18 months if he goes to the court of final appeal. and altogether if he accepts his sentence. There must come a time when he accepts the club has to be sold and that time for me is when he loses this appeal, and imo he will.

  • SuperKRO says:

    Dan, once again thank you for a concise and sensible summary. It just seems that these next 28 days will be critical in what seems to be a roller coaster of a ride for our beloved club. KRO.

  • Oliver says:

    What I don’t understand is, if CY is in jail for 6 yrs how can he have any influence on the day to day running of BIH?? I get he’s the largest shareholder but surly he can’t run a club from jail and with his assets frozen!! The sooner we get rid of him the better, it’s been 1 hell of a roller coaster ride since he brought our club!! KRO

  • Bluepenguin76 says:

    Great stuff Dan..makes it a lot clearer to me. Still a long waayyyy to go.

    KRO

  • nigel sale says:

    How will blues be able to be sold if holding company shares are still frozen?

  • Oldbluenose says:

    Daniel;, I asked yesterday, but you probably did not see it,?.

    Carson is the largest shareholder, and with his ” common-law ” wife, together hold 40 odd %, of BIH shares, — but — that still is a minority shareholding if it comes to a vote on a possible sale of the club,

    Is my summation correct,??.

    • almajir says:

      No, it’s not.

      1) it’s his brother in law, not his wife that owns the shares.

      2) while it is, most shareholders don’t vote. Carson is very very hard to beat without his agreement.

  • Stevie W says:

    Dan good podcast where the message is more important than the delivery which by the way is good on both counts.

    Where does CY get the idea 9 million will keep the wheels turning?

    What happens after that 9 million has run out?

    Where is the business plan to stabilise and indeed grow the business to the benefit of all share holders?

    I don’t see anything but a me me me coming out of the CY camp.

    Now EY have that snippet of information officially, they can continue with the Plan A and Plan B demonstrating that anything they have is far superior to that and will be to the benefit of all shareholders.

  • zxcv says:

    Interesting that the receivers have presented the court with documentation of the state of bih up to 30th march 15. Also The summons taken out by the receivers against the first summons from the so called new board. I wonder how many will apply for an application to join CY to get them removed, suspect he is flogging a dead horse.

  • Blue Lizard says:

    Waits another 28 days and guess what…..another delay for something else,they aren’t going anytime soon unless E&Y can pull a rabbit out of a hat (not the battery type)

    • zxcv says:

      Like Dan said Its only 28 days could have been worse, but I take that as saying to Carson ” your mates have 28 days to join you by declaring to intervene also just to comply with the Law.

  • zxcv says:

    Stevie W. Looks like your April prediction is not quite on the money matey, hard to say but I think around June/July time.

    • zxcv says:

      Tbh after todays tussles, I think it could actually proceed quite a bit quicker now so maybe late May early June.

    • Stevie W says:

      Yep have to agree that April is now looking quite a long way off. However the paragraph at the end of the latest announcement leads me to believe that no matter what EY are continuing Ops normal so to speak. So Plan A and B will still roll on.

      “In the interim, the Receivers continue taking all necessary steps as they consider appropriate to
      preserve the value of the Company and protect the interests of the Company and the Shareholders
      as a whole. Further announcement(s) will be made by the Receivers as and when appropriate or as required by the Listing Rules.”

      • zxcv says:

        Think they end all announcements with that paragraph, scud, standard practise. But whatever happens imho they will sell however many plans it takes could be plan d,e,or f. even plan insolvency the last resort one, that’s why Carson can`t win.

  • Hillfied Blues says:

    Well done Dan and great coverage over the last couple of days. I had hoped that the summons would be thrown out but 28 days to put their cases foreward is the next best thing and is a clear message from the court that they are not giving CY much sympathy. I think this sets the tone for his appeal hearing and hopefully the court will be equally unsympathetic.
    Another thing the summons hearing did was exposed CY’s perilous financial situation and also EY’s clear intent to sell when it was a “last resort”a few weeks ago.

  • Harbsbleu says:

    Anyone got an idea what EY have racked in costs so far, they must be rubbing their hands in glee! Talk about a lucrative gravy train

    • Hillfield Blues says:

      Dan mentioned it could be 2 to 3 mill by the summer mate

    • StaffsBlue says:

      As I said the other day, if E&Y can rid of the BIHL disease, they will have earned every penny. Fingers crossed.

  • Sean Thomas says:

    Your solicitor friend in HK on company law is probably rated on a scale from 1 – 10 Is say 1-2 and Carsons legals are 9-10 would that be a fair statement?

    • almajir says:

      Whats the top end and the bottom end?

      Will is good at what he does, he’s been doing for nigh on a quarter of a century.

      Carson’s lawyer Mickey Bough is that high profile his company doesn’t even have a website. He’s not great from what I’ve seen.

    • swissjonny says:

      Sorry to disappoint you mate but Will has acted on the winding up of over 70 companies and is held in high regard by many in Hong Kong.Furthermore as a Spurs fan he has given up a lot of time-for free to try and help Daniel and our mutual cause.What have you done-bet you havent even purchased a book!!!

  • Jazzzy786 says:

    Where on Earth has Carson got his hands on £9m? He must be charging a lot for prison haircuts or does this mean his assets are no longer frozen.

    • Adam True Blue says:

      I was thinking much the same, and has he got to document where these funds came from? Here we go again! Kro.

    • Agent McLeish says:

      Saying you have £9m and having £9m is very different. Remember Judge Douglas described CY as a habitual liar.

  • Smudge says:

    Thanks Dan, as always good insight. It seems that the court was critical of E&Y for late filing of their affidavit. that seems to me slightly worrying as they have a large team working to sort this mess out. What is the likelihood of Carson being able to further railroad them during the next 28 days. From where I am sitting I guess he may well try to discredit them through the courts with more summonses.
    This seems to be further proof that this will be a long drawn out and expensive mess, also if Carson can further discredit E&Y then could they be removed as he wants. I don’t wish to pour cold water on any good news but I am rather cynical and suspicious of this whole BIHL affair. I look forward to being proven wrong. KRO

  • zxcv says:

    It wasn`t E&Y the judge criticised, It was the council for being late with Affidavit. its the lawyers who represent E&Y. The court threatened to report them to the Bar which E&Y have no beholding to but the lawyers certainly do.


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