NU: An Utter Disgrace!

[First Wizard 0]

One of the city''s oldest employers, Norwich Union, have effectively, ''gifted'' the scum 20 million quid!.

http://www.eveningnews24.co.uk/content/news/story.aspx?brand=ENOnline&category=News&tBrand=ENOnline&tCategory=news&itemid=NOED23%20Feb%202007%2010%3A00%3A25%3A667

When its own ''home town club'' is in the financial do do''s, it makes me spit blood.

So much for our damn prudence Doncastor!.

[ron obvious 1,502]

Pretty indicative of what''s happening in society generally.

Plus the old adage: "owe the bank £100, you''ve got a problem; owe them £1,000,000, they''ve got the problem." (These figures should be adjusted for inflation).

[The Voice of the Thorpe Area 0]

I am actually lost for words on this one!

[Salopian 1]

Were NU not generous after the stand fire and in rebuilding the stand, admittedly perhaps not in the same class of generosity?

[ricardo 7,384]

[quote user="1st Wizard"]

One of the city''s oldest employers, Norwich Union, have effectively, ''gifted'' the scum 20 million quid!.

http://www.eveningnews24.co.uk/content/news/story.aspx?brand=ENOnline&category=News&tBrand=ENOnline&tCategory=news
&itemid=NOED23%20Feb%202007%2010%3A00%3A25%3A667

When its own ''home town club'' is in the financial do do''s, it makes me spit blood.

So much for our damn prudence Doncastor!.

[/quote]

Its just a rehash of the story in yesterdays E.A.Daily Times. Archant have to sell newspapers.

If you read that story you will see nothing much has happened and I can''t really see N.U. writing off 20 mil

[Stevie 0]

All that is happening is that another company is buying the debt from Norwich union.  Yes it will disappear from the S**m''s balance sheet but they will still be charged interest on the amount (probably more than they are now!).  Just a quirk of sorts to make their balance sheet look healthier.  Bit like all the PFI deals that the government seems to be doing at the moment.

[a1canary 0]

[quote user="1st Wizard"]

One of the city''s oldest employers, Norwich Union, have effectively, ''gifted'' the scum 20 million quid!.

http://www.eveningnews24.co.uk/content/news/story.aspx?brand=ENOnline&category=News&tBrand=ENOnline&tCategory=news&itemid=NOED23%20Feb%202007%2010%3A00%3A25%3A667

When its own ''home town club'' is in the financial do do''s, it makes me spit blood.

So much for our damn prudence Doncastor!.

[/quote]I have to confess wiz, when i saw your post header i thought, ''oh no, what''s the old fella on about now?'' But reading this article at face value, rehash of a previous one or not, you are entirely justified in your outrage. This seems extraordinary to me. Looking at it from a business point of view, it makes even less sense for NU. The club still generates money and it could still take interest payments (£1.5m/year) that would eventually pay them back their original 25million and then some. As it used to do. Yet you read further on to find ITFC ''struck a deal where it paid no interest.'' Eh? A deal? That''s not a deal - that''s some kind of trickery! Does Sheepsh***er have some compromising photographs of Richard Harvey (Aviva CEO) in a binner''s strip?I''m off to the bank tomorrow to "strike a deal" to pay no interest on my mortgage. Oh and while i''m at it i''ll strike another deal to write off all my loans.All this tells us is that NCFC should go out and double our debts and then strike similar deals. None of it makes any sense! Someone make it make sense!

[ricardo 7,384]

[quote user="a1canary"][quote user="1st Wizard"]

One of the city''s oldest employers, Norwich Union, have effectively, ''gifted'' the scum 20 million quid!.

http://www.eveningnews24.co.uk/content/news/story.aspx?brand=ENOnline&category=News&tBrand=ENOnline&tCategory=news&itemid=NOED23%20Feb%202007%2010%3A00%3A25%3A667

When its own ''home town club'' is in the financial do do''s, it makes me spit blood.

So much for our damn prudence Doncastor!.

[/quote]I have to confess wiz, when i saw your post header i thought, ''oh no, what''s the old fella on about now?'' But reading this article at face value, rehash of a previous one or not, you are entirely justified in your outrage. This seems extraordinary to me. Looking at it from a business point of view, it makes even less sense for NU. The club still generates money and it could still take interest payments (£1.5m/year) that would eventually pay them back their original 25million and then some. As it used to do. Yet you read further on to find ITFC ''struck a deal where it paid no interest.'' Eh? A deal? That''s not a deal - that''s some kind of trickery! Does Sheepsh***er have some compromising photographs of Richard Harvey (Aviva CEO) in a binner''s strip?I''m off to the bank tomorrow to "strike a deal" to pay no interest on my mortgage. Oh and while i''m at it i''ll strike another deal to write off all my loans.All this tells us is that NCFC should go out and double our debts and then strike similar deals. None of it makes any sense! Someone make it make sense![/quote]

Read the original article and all will be revealed.

http://www.eadt.co.uk/content/eadt/sport/story.aspx?brand=EADOnline&category=IpswichTownFC&tBrand=EADOnline&tCategory=zSport&itemid=IPED22%20Feb%202007%2008%3A55%3A48%3A487

[Niche 0]

Complete non-story (at least as currently presented).

All that currently has happened is that NU seem to have taken a view on the net present value of their debt, factored in the risk of default, and come to a figure of c£5m. NU are taking a bad debt hit themselves of £20m, but this does not affect Ipswich, other than their debt is now held by the third party. The debt is still £25m, it''s just that it''s value to NU is deemed at £5m.

Two main scenarios then: either someone is taking a punt that they''ll be able to recoup more than the £5m they''ve just paid, which will mean they will seek to screw as much out of Ipswich as possible, or someone is using it as leverage in purchasing the club, later exchanging the debt for equity.

Be interesting to find out....

[First Jedi 0]

All NU have done is securitize the loan to another firm. I''ll spell this out to you;

IPSWICH STILL OWE THE DEBT!

Another firm is not going to buy Ipswichs liability without seeing return on it. They won''t reduce the debt, they''ll probably do their best to stretch it out over a longer period, if anything. NU have taken a long term gain, and turned it into a short term (lesser) gain. This sort of thing happens ALL the time in banking. In fact, many of your mortgages and loans that you have with certain bank are actually owned by another bank. The original bank still administrated their original loans/ mortgages so it still seems that nothing has happened from your perspective. Since the deal with the client never changes, you don''t even know it''s happened.

It kind of rediculous story, because the implication for Ipswich isn''t good at all. NU have decided that they are too much of risk, might go in administration etc, and hence the risk is too high. So they decide to pass the risk on to another bank or investment firm who is willing to take the gamble - the buyer is looking at getting £25million (plus interest) for a cut price of £5million. Bargin! *If* you are willing to risk it over a long term with such a dodgy prospect of Ipswich....

[First Jedi 0]

Sorry to keep banging on... but basically NU don''t think that Ipswich will last long enough to recoup as much money as what they''ve sold the debt for.

So; Good news all round! :)