Donington is Dead - Long live Donington [merged]

[terence]

Originally Posted by GORDON STREETER

Oh if only the "lower" public knew what I knew a fair while back Terry they would have been in the local betting shop sticking a few quid on this !

Likewise Gordon,but would that come under 'insider dealing'?

[VIVA GT]

Originally Posted by Lancsbreaker

Then again, you'd hardly expect JP to be waxing lyical about how cheap and easy it will be to start making money from the venue, in advance of any negotiations, would you......?

Cynical, moi?

Pretty much what I was thinking (but didn't have time to post).
(I have been known to be accused of being cynical too at times!)

[Tim Falce]

Originally Posted by GORDON STREETER

Al, I explained on the F1 thread that I can't divulge it. Otherwise it would cause lots of problems with confidentiality with one of my oldest mates, sorry !.

I thought that was Eric or did you mean mates you've known a long time.

[Peter Mallett]

Originally Posted by andy97

Do they? I'm no lawyer but I don't think that's right. Surely if DVLL goes bust, the lease returns to the Wheatcroft family and either they run it, lease it to someone else or sell the whole package for someone else to run. In the mean time, the creditors of DVLL have to chase Gillet & Co for their dosh & will finally be forced to right off ther own debt or come to some sort of arrangement, say 10p i n the pound, if he has any assets to claim against.

In my experience the receivers will try to get as much for the property as they can. The lessor is just one of the creditors and as possibly the largest they'll want a massive financial settlement. If they can't get that then they'll sell it to whomever will pay the most. So, if you want Donington to survive you'll need to cover the cost of the debt so that you can then rebuild it.

[Al Weyman]

RiP Donington, its gone.

[Piglet]

Originally Posted by Peter Mallett

In my experience the receivers will try to get as much for the property as they can. The lessor is just one of the creditors and as possibly the largest they'll want a massive financial settlement. If they can't get that then they'll sell it to whomever will pay the most. So, if you want Donington to survive you'll need to cover the cost of the debt so that you can then rebuild it.

It depends what happens. If the Administrators (not receivers) sell it off they may well want to get rid of some of the debt.

BUT if the lease is either disclaimed or it reverts to the landlord in some other way then it is up to the landlord to do another deal and that wouldn't include the debt.

[Peter Mallett]

Originally Posted by Piglet

It depends what happens. If the Administrators (not receivers) sell it off they may well want to get rid of some of the debt.

Same thing different name.

Originally Posted by Piglet

BUT if the lease is either disclaimed or it reverts to the landlord in some other way then it is up to the landlord to do another deal and that wouldn't include the debt.

The landlord being the lessor(?) will want a big slice of any equity which was my point really. They were owed many months rent before all this went tits up.

[Peter Dunne]

Originally Posted by Al Weyman

RiP Donington, its gone.

Sounds like you heard something pretty concrete there Al. Care to share?

[GORDON STREETER]

I wouldn't have thought that anyone would want to have anything to do with Donnington as the investment would be long term just for a race circuit. A leisure company could do it but it would probably restrict the circuit use as it would have to make it a multi venue (theme park etc)
OK someone with amazing amounts of spare cash could do it if they are interested enough in motorsport.
Even multi billionaires that could be interested are first and foremost businessmen because that's how they got there in the first place.

[Piglet]

Originally Posted by Peter Mallett

Same thing different name.

Nope, different in my opinion, the Administrators will usually try to sell the whole shebang as a going concern. Receivers are much more likely to asset strip and flog it all off piecemail.

If the Administrators try to assign the lease to a new tenant (if it's permitted by the lease) then the Administrators and/or the LL MAY want some of the arrears paid as part of the deal. However, the LL is likely to be so bleeding relieved that there is a prospect of someone taking on the smoking wreckage that they will take a pragmatic view re the arrears.

Originally Posted by Peter Mallett

The landlord being the lessor(?) will want a big slice of any equity which was my point really. They were owed many months rent before all this went tits up.

The LL's claim is against DVLL limited (in Administration) and any guarantor that there may have been. If the lease is forfeited or disclaimed then all the LL def get's back is possession of the property. They are free to do another deal with another party - they are also free to go after DVLL for the arrears but these are seperate transactions.

They do not have the right to try to claw back any outstanding arrears from the other party.

Equity? I doubt there is much of that...

[andy97]

Its also worth bearing in mind that since the original deal was done between DVLL & the Wheatcrofts, the circuit has lost the Moto GP round, WSR & Super League, probbaly 3 of its biggest pay days. On top of the restoration work thats required to be paid for, the lease isn't worth anywhere near the rumoured £2M that Gillett agreed to pay. The business pln just wouldn't stack up on a diet of UK Club racing, Track days, the Download concert and a single BTCC round as its one high(ish) profile event. Personally, I hope that the Wheatcrofts sell the freehold (inc the Donington Collection) to Dr JP. I think thats the only hope.

[Peter Mallett]

Having been there I'll have to agree to differ.

[Greem]

Originally Posted by Peter Mallett

Having been there I'll have to agree to differ.

Recently? As in, during the last few days (or weeks)?

[Tim the Grey]

Equity? I doubt there is much of that...[/QUOTE]

Nor Goodwill!


As I understand the law, The Wheatcrofts' still own Donington, regardless of what DVLL did, or have done to them. No one can chase them for money owed by DVLL. No one can chase a new operating company for money owed by DVLL, unless they sign an agreement to that effect.

That is good news. The bad news is, it won't be back next year. No way. So whoever spends out, sees no income for 12 months plus. That philanthropy, not business.

[Peter Mallett]

Originally Posted by Greem

Recently? As in, during the last few days (or weeks)?

Lol I was responding to Piglet.

[Dave 455]

The Donington Grand Prix Collection has been closed down today, staff layed off and the collection is in the hands of the administrators.

What a sad day for all!

Just hope you all recently paid a visit before this very sad occasion for all.

[Al Weyman]

Originally Posted by Peter Dunne

Sounds like you heard something pretty concrete there Al. Care to share?

Just a hunch Peter from a well worn 61 year old that has been self employed since his teens and has seen seen things like this many times in the past. And the above post about the collection confirms to me that my hunch is correct.

[Tim Falce]

Originally Posted by Dave 455

The Donington Grand Prix Collection has been closed down today, staff layed off and the collection is in the hands of the administrators.

What a sad day for all!

Just hope you all recently paid a visit before this very sad occasion for all.

Sorry if I've missed it but did the collection belong to Gillett and if not how can the administrators seize it?

[Al Weyman]

I was wondering that Tim? Mind you I have also known of a third parties goods on a premises of a company that has gone into liquidation that have been seized and held until everything was resolved, it does happen.

[redshoes]

The land DVLL leased extends beyond the concrete wall so could include the buildings used by the collection but the Collection itself still belongs to the Wheatcrofts

[Al Weyman]

But the liquidators don't know that yet so presumably would cease the lot till title prooved, no?

[Dave 455]

The administrators realised yesterday that DVLL was running the Donington Collection as part of the 150 year lease and DVLL were in fact in full control of the collection.

As such, all Grand Prix Collection staff were layed off this morning, the whole collection was closed and possesion of the cars was seized, and legally all cars that were not loaned to the collection, may be auctioned off sooner, rather than later, depending upon legal documents coming through, expect more news early next week.

This may be the most tragic event to hit British Motorsport in a long time!
Mr Gillett has questions to answer!

[Alex Hodgkinson]

I don't know how to react to that news. That's just terrible...

[Steve Tarrant]

Dave 455, not only Mr Gillett but a certain Mr Ecclestone who's greed started this whole process. I trust he's sleeping well tonight.

[JimW]

Originally Posted by Dave 455

The administrators realised yesterday that DVLL was running the Donington Collection as part of the 150 year lease and DVLL were in fact in full control of the collection.

As such, all Grand Prix Collection staff were layed off this morning, the whole collection was closed and possession of the cars was seized, and legally all cars that were not loaned to the collection, may be auctioned off sooner, rather than later, depending upon legal documents coming through, expect more news early next week.

This may be the most tragic event to hit British Motorsport in a long time!
Mr Gillett has questions to answer!

Interesting; I'd like to see chapter and verse on that.

I'd be very surprised to find that Tom had given anybody ownership of any of his cars. I understand that DVLL had the rights to run the Museum with all the cars but not ownership.

Sure the administrators may have woken up to the running and taken steps to secure that operation (sounds a bit dozy to me if they have only just realised?) and they may have stated a position over the cars but, as I say, I'd be surprised if they get them.

Regards

Jim