As most CCFC fans are aware, in February this year Tan Sri Vincent Tan made a public announcement that he would immediately be converting £68m of the debt due to him by the club into shares and would subsequently be carrying out further conversions over a 5 year period which would convert the balance due to him of approximately £40m. This announcement, at a meeting attended by Trust board representatives, would mean that the club would return to balance sheet solvency for the first time in many years and put the club in a far healthier financial position. The announcement was warmly welcomed by the Trust at the time.
Since February, the Trust board has been in regular and frequent contact with the club’s CEO and Chair in meetings and via email and telephone conversations, and this matter has formed part of that agenda. To help prevent any misunderstanding or misinterpretation of the current position, the Trust can report as follows.
The change of such a large sum of money from debt to equity by TSVT requires the approval of the Malaysian regulatory authorities and the process can be slow. Therefore, although this approval continues to be pursued and the club board are entirely confident that the matter is being positively progressed, it is not yet formally complete and so the £68m conversion has not yet been finalised. However, the first of the expected £8m conversions has been approved and put in place and will be reflected as a note to the 2015/16 audited accounts when they are submitted to the football authorities and Companies House.
The Trust will continue to liaise with the club at its board meetings on this matter and provide updates as appropriate.