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Has The Herald Highlighted A Deadly Clause In Sevco’s Close Brothers Loan Deal?

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The first newspaper to break ranks and start looking into the Close Brothers loan deal with Sevco has emerged; it’s The Herald.

And as Joe over at VideoCelts has noted, their report appears to highlight a serious issue with the agreement itself.

The loan agreement stipulates that Sevco must keep the properties involved in it in good condition; as The Herald points out, Edminston House is not in anything like good nick. The club has talked repeatedly about renovations and upgrades but none appear to have been done. Edminston House is a dump, and I would be amazed if Close didn’t know that.

Why is this important?

A mortgage agreement would stipulate much the same thing; that your house had to be maintained at a certain value, or the loan would be voided. The thing is, banks don’t usually lean on lenders over that stuff because they are not normally predatory organisations.

But Close Brothers are.

And as old friends of Green who knows what their intentions are here?

If they so desired it, they could force Sevco to spend money bringing that property up to par.

The relevant part reads; “A list of conditions that have to be met include ensuring that the properties are in “good and sufficient repair to the reasonable satisfaction of the lender”.

And if the club doesn’t do it, they could foreclose.

It’s there, in the contract.

And as we know the club doesn’t actually have the money to do those upgrades – or they wouldn’t be talking to Close in the first place – then Sevco has handed over all power to them.

Sevco couldn’t even challenge the issue in court; Close’s agreement also means that any fees they incur in pursuing their own rights in relation to the deal have to be paid by the club; Sevco would be incurring even greater risks, at even greater cost.

Look, I’m not saying this would happen or that Close intends to do it … but the possibility of it is there, and the club has clearly overlooked it.

How much else are these Peepul missing?

How much more peril are they putting themselves in with their stupidity?

The people running that club would be described as rank amateurs if you didn’t want to insult amateurs.

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