Tony’s Statement.

[Risso]

There was a £50m loan due back to the parent company.  I wonder if it is swapping debt for equity if it includes that, or if it's a new injection of cash altogether?

[SO Villa]

I’m re-reading the FT article on Xia from May 2016, questioning his, background, credentials, lies etc. The clues were all there in the article.

The "Champions League in 5 years" bollocks, or whatever it was, was all I needed to hear to set major alarm bells ringing.

[john2710]

Whatever the final outcome of all this, Tony Xia should hang his head in shame that an institution like Aston Villa should ever get into the mess that it currently is.

[GarTomas]

There was a £50m loan due back to the parent company.  I wonder if it is swapping debt for equity if it includes that, or if it's a new injection of cash altogether?

I see it as a conversion given it’s both back dated and not being widely reported that we are more stable financially.

[Chico Hamilton III]

I’m re-reading the FT article on Xia from May 2016, questioning his, background, credentials, lies etc. The clues were all there in the article.

The "Champions League in 5 years" bollocks, or whatever it was, was all I needed to hear to set major alarm bells ringing.

And that he controlled 5 publicity listed companies. And that he helped build the Bird’s Nest stadium. Both of which claims were shrugged off as “miscommunication”. Or “bullshit” as we like to call it. I wonder what other miscommunications he’s made?

[UK Redsox]

Unpaid shares showing as 0. Therefore, this is either debt for equity or new funds.

I suspect the former

Link

[achilles]

Excuse my ignorance but how can you convert debt to equity?

[GarTomas]

Excuse my ignorance but how can you convert debt to equity?

Companies are either funded by debt or equity (or a combination of both)

So if you can have a company worth £50 that is backed by 50 shares with a value of £1 each or a loan of £50 from an individual or company to the company of £50.

Given Xia is the owner of the club entirely then it makes little difference whether he funds it entirely with debt to him personally or puts the same money into the club and issues shares that he owns.

Except now he’s looking for investment it would be easier to sell the shares rather than the debt as the owner of the shares and not the debt ultimately decide how the company is run.

[UK Redsox]

Excuse my ignorance but how can you convert debt to equity?

Wiki

In a debt-for-equity swap, a company's creditors generally agree to cancel some or all of the debt in exchange for equity in the company.

Debt for equity deals often occur when large companies run into serious financial trouble, and often result in these companies being taken over by their principal creditors. This is because both the debt and the remaining assets in these companies are so large that there is no advantage for the creditors to drive the company into bankruptcy. Instead the creditors prefer to take control of the business as a going concern. As a consequence, the original shareholders' stake in the company is generally significantly diluted in these deals and may be entirely eliminated

[achilles]

Cheers for those explanations.

[ChicagoLion]

A slight problem with the above explanation.
Not all Debt Equity swaps result in the creditors gaining control of the company

[mr underhill]

must be the heat because I don't get this - Tone owns the club debt and equity so who are the creditors other than HSBC?

[Des Little]

Can we make this like Janet & John please?  Are we looking safe from admin or not?

[Nev]

Can we make this like Janet & John please?  Are we looking safe from admin or not?

Amen brother, the fact that something happened on the 25th May before we failed to reach the land of Milk and Honey leaves me even more confused.

[ChicagoLion]

We don’t know who the real sources of the funds that have leant to and purchased the club.
Because there is no way of establishing sources of capital in relation to Chines Individuals or entities.
These filings as far as I understand represent changes to the share structures only, this may be the precursor to new capital being introduced and or a change in ownership of shares but we don’t know that.