Smolenski's offer to the administrators - allegedly
Discussion
I heard yesterday that Smolenski allegedly offered the administrators for BA £100k more than the highest offer from the other bidders - allegedly. That is, Smolenski did not offer a specific sum for BA. As such, Smolenski's bid beat Al Melling's bid by £100k. This would presumably and allegedly be highly suspicious in a closed bidding process (which I thought it was - allegedly).
Interestingly, I also heard a week or so ago that DO was allegedly 'boasting' to people ONE WEEK BEFORE the announcement from the administrators that Smolenski had won the bid. Allegedly.
I assume that the bidding process, and hence whether there is any truth in the above, will be investigated by the DTI (assuming this investigation gets off the ground).
Anyone else heard anything interesting about the bidding process? Allegedly?
Note for the avoidance of doubt that the above is what I heard in good faith and in no way may represent the truth - allegedly.
Julian
Interestingly, I also heard a week or so ago that DO was allegedly 'boasting' to people ONE WEEK BEFORE the announcement from the administrators that Smolenski had won the bid. Allegedly.
I assume that the bidding process, and hence whether there is any truth in the above, will be investigated by the DTI (assuming this investigation gets off the ground).
Anyone else heard anything interesting about the bidding process? Allegedly?
Note for the avoidance of doubt that the above is what I heard in good faith and in no way may represent the truth - allegedly.
Julian
Does it really matter.
The administrators (PKF) have accepted the best bid on behalf of the creditors. 
They were required by law to do this and not compassion. 
As for Oxley; is it not also rumour that he is out of work in the not to distant future ? 
If it is true is there actually anything illegal/wrong about that?
Surely the job of those selling is to get as much as possible from the person least likely to jerk them around financially?
He was always going to get it if he wanted it otherwise he would have cried and cried until he was sick and daddy would get his wallet out.
So, all we are debating here is how much he has had to pay for it(who cares?), the words 'right' and 'fair' very rarely crop up in business.
Personally I would rather someone(anyone other than NS) UK based had bought it but they didn't.
TVR is finished - game over.
Surely the job of those selling is to get as much as possible from the person least likely to jerk them around financially?
He was always going to get it if he wanted it otherwise he would have cried and cried until he was sick and daddy would get his wallet out.
So, all we are debating here is how much he has had to pay for it(who cares?), the words 'right' and 'fair' very rarely crop up in business.
Personally I would rather someone(anyone other than NS) UK based had bought it but they didn't.
TVR is finished - game over.
it is all very strange, pkf keep claiming to be officers of the courts. whiter than white and only involved to get the best deal for the creditors, but it turns out ns called them in on the 30th of november, they will not say what for, then it gets sold on the 12th december and went into administration on 22nd december with the same company, it dosent sound right to me.
FUBAR said:
AFAIK PFK were not duty bound to take the highest bid (well, it certainly works this way with property sealed bid tenders) but what the reason to be the 'best' bid (as I said, not always one and the same)
How do you know that?
Administrators have a legal duty to accept the highest bid on behalf of the creditors. Their only interest is to secure the maximum funds for those creditors.
unrepentant said:
Administrators have a legal duty to accept the highest bid on behalf of the creditors. Their only interest is to secure the maximum funds for those creditors.
That's what I thought, but this process was AFAIK supposed to be a sealed bid process, not an auction; the alleged process that I described seemed to be a variation on an auction where NS was sure to win. Doesn't sound right. If the process used is proved to be dodgy, then presumably NS doesn't get BA and the sale to the Americans is invalid. Therefore this may be significant?
Julian
julianc said:
unrepentant said:
Administrators have a legal duty to accept the highest bid on behalf of the creditors. Their only interest is to secure the maximum funds for those creditors.
That's what I thought, but this process was AFAIK supposed to be a sealed bid process, not an auction; the alleged process that I described seemed to be a variation on an auction where NS was sure to win. Doesn't sound right. If the process used is proved to be dodgy, then presumably NS doesn't get BA and the sale to the Americans is invalid. Therefore this may be significant?
Julian
More likely it was "best offer" rather than sealed bid. And if your best offer is any other offer plus £100k then that's the best offer.
unrepentant said:
julianc said:
unrepentant said:
Administrators have a legal duty to accept the highest bid on behalf of the creditors. Their only interest is to secure the maximum funds for those creditors.
That's what I thought, but this process was AFAIK supposed to be a sealed bid process, not an auction; the alleged process that I described seemed to be a variation on an auction where NS was sure to win. Doesn't sound right. If the process used is proved to be dodgy, then presumably NS doesn't get BA and the sale to the Americans is invalid. Therefore this may be significant?
Julian
And if its in a sealed envelope then it complies with all points.
Old Oxo would have known that NS had rather than put a specific figure had put best price +£1 so known that they would have won. That could explain why he could boast so knowingly.
More likely it was "best offer" rather than sealed bid. And if your best offer is any other offer plus £100k then that's the best offer.
unrepentant said:
FUBAR said:
AFAIK PFK were not duty bound to take the highest bid (well, it certainly works this way with property sealed bid tenders) but what the reason to be the 'best' bid (as I said, not always one and the same)
How do you know that?
Administrators have a legal duty to accept the highest bid on behalf of the creditors. Their only interest is to secure the maximum funds for those creditors.
I was going on the presumption that, as with property, the highest bid is not always the best deal. I could have offered £5m subject to this and that, or on a long timesclae and NS could offer £2m without any conditions attached and funds readily available. My offer isnt necessarily the 'best' offer just by being the most.
FUBAR said:
unrepentant said:
FUBAR said:
AFAIK PFK were not duty bound to take the highest bid (well, it certainly works this way with property sealed bid tenders) but what the reason to be the 'best' bid (as I said, not always one and the same)
How do you know that?
Administrators have a legal duty to accept the highest bid on behalf of the creditors. Their only interest is to secure the maximum funds for those creditors.
I was going on the presumption that, as with property, the highest bid is not always the best deal. I could have offered £5m subject to this and that, or on a long timesclae and NS could offer £2m without any conditions attached and funds readily available. My offer isnt necessarily the 'best' offer just by being the most.
In a fire sale im pretty sure its cash on the table and you have to prove you have it before you are allowed to bid. Conditions dont come into it.
Why are we even talking about this
Alleged Conversations
Alleged Boasting
Alleged DO out of a job
Alleged 100k on top
Alleged oh wtf I can't be bothered
Note to PetrolTed - could you change the blue banner at the top of the page to a red one please.
If we're going to behave like a tabloid then we might at least look like one!
Anyone fancy a fact or two?
Edit: cos allegedly I can't spell
Alleged Conversations
Alleged Boasting
Alleged DO out of a job
Alleged 100k on top
Alleged oh wtf I can't be bothered
Note to PetrolTed - could you change the blue banner at the top of the page to a red one please.
If we're going to behave like a tabloid then we might at least look like one!
Anyone fancy a fact or two?
Edit: cos allegedly I can't spell
Edited by dodgyviper on Thursday 8th March 16:59
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