Derby owner Morris cancels £ 100million loans as directors reveal expressions of interest
Derby owner Mel Morris cancels £ 100million in loans as administrators reveal they have received ‘seven or eight credible expressions of interest’ for the Championship club
- Derby County owner Mel Morris cancels £ 100million soft loans
- Directors received “seven or eight credible expressions of interest”
- Some potential bidders are UK based and there is interest from overseas as well
- There are three months of panic-free leeway, then the transfer window will open
Derby County administrators have already received “seven or eight credible expressions of interest” for the purchase of the crisis-stricken Championship club and they are expected to receive an official “teaser document” with terms of sale by the next. weekend.
Some potential bidders are based in the UK, while there is “substantial” interest from the US and at least one bidder from Continental Europe and Asia.
“The likely timeline is that interested parties will be contacted next week with the teaser document,” administrator Andrew Hosking of restructuring firm Quantuma told the Mail on Sunday.
Well over £ 100million is owed to Derby owner Mel Morris in low interest loans, and he won’t seek a dime
Derby County administrators have already received ‘seven or eight credible expressions of interest’ for buying the club
Potential owners will then need to sign nondisclosure agreements and provide proof of funding of at least several million pounds before more substantial talks.
Derby owner Mel Morris has spent years – and around a quarter of a billion pounds – trying to promote the club. But he and his board reluctantly decided that administration was the only way to clear the bridges to allow new custodians to enter.
The club are at the bottom of the championship with minus two points after being deducted from 12 points by the EFL for entering administration. An additional nine point penalty for breaking EFL Financial Fair Play rules is likely, as is relegation at the end of this season.
But beyond that, from next season, debt-free and with a clean slate at the EFL, a new investor can potentially restart the club.
The Department of Health understands that Quantuma is still assessing the extent of Derby’s financial problems, but that there is enough money in the bank to underwrite a “cash flow plan” for 100 days. Or in other words, there is three months of panic-free wiggle room, and beyond that, the January transfer window would be open if player sales were needed for additional funding.
Three months ago without panic, and beyond, the January transfer window will be open if player sales are needed for additional funding.
Wayne Rooney’s team are at the bottom of the championship with -2 points and an additional deduction of nine points is likely
Sources with knowledge of the situation claim that overall debts are both much worse than reported to date (closer to £ 200million than £ 60million), but at the same time less worrying, as well over Morris is owed £ 100million in soft loans, and he won’t be looking for a penny.
The extent of this subsidized loan debt is not public because the club has not published any accounts since the end of the 2017-18 season.
Derby’s other biggest creditor is HMRC (£ 28million), then MSD Capital (almost £ 19million, but this is secured separately against Morris’ personal assets), while Football’s secured creditors ( mainly Arsenal and former manager Philip Cocu) owe around £ 6.5million, and unsecured creditors (suppliers, contractors etc) are collectively owed between £ 8million and £ 12million.
A legal expert said the IRS would inevitably get more from a sale that keeps the club alive than a liquidation.