So think this deserves a thread of its own as it has now become clear Lai is not going to be funding the club infact refuses to pay a debt back , the reasons he has given have been shot down on Twitter as blatant lies, from finacial Experts including Business men who run firms in China.
Blelow you will see comments off twitter , not mine but from people who know more on this Subject than myself.
There is also a rumour he has sold shares in his ECO business raising 20 million from this venture, all in all its fair to say after these findings he has managed to become more unpopular before, I would go as far as saying he will be taking from our club before long...
This guy has to sell before he ruins us, People believe there are investors willing to buy our club, yet he is rufusing, so what does this guy actually want from us ?
When the parachute payments have gone guys .......
WORRY !!!
Mattwilson@expressandstar
Owner Guochuan Lai has told #wba restrictions into foreign investment from the Chinese government are stopping him paying the £4.1m debt he inherited from Jeremy Peace https://t.co/rFpkTDbhfT
Surely the £4.1 million is classed as a debt owed and not a new investment?
Huge stink on Twitter,
This is what Lai claims yet financial investors on Twitter say it's not a new interest so there is no restriction to pay, it's a obligation to pay the debt !!
Here's one take on it off Twitter
Good job I was sitting down when reading this. Part of me wanted to roll around on the floor laughing at the sheer brass neck and audacity of it. Another part wanted to hit the ceiling in fury.
Let's remind ourselves just how serious this is: Jeremy Peace in 2014 took a secret £3.7 million loan (now £4.1 million, with interest) from West Bromwich Albion Group (currently owned by 12% of us shareholders) to his solely owned company West Bromwich Albion Holdings. Shareholders were then offered £3,000 for each of their shares, which many accepted. It took Mr Peace to above 75% ownership of our club - enabling him to sell. He sold to Palm for approximately £20,000 a share two years later. Surely, he has not used the loan money to actually finance his majority purchase of the club? This would be illegal.
If that was not bad enough - and yes, it's as bad as it sounds - he then refused to pay back the debt, leaving it with the new "owners" who posses 88% of our club. This business of "accruing interest" is also nonsense. Not a single penny of interest has been paid. Can any of us think of a single loan which we've had for five years during which no interest is paid, either monthly, quarterly or annually?
So now Palm come up with this scam...that they are not allowed to pay back a debt because it is linked to a Chinese government directive. What utter nonsense. Mr Lai-Low and his operative in the UK, Mr Li-Lower, (not to mention another Chinese penny pincher, with the cosy nickname of Ken, who is based at the training ground, going through the small change) need to start delivering answers - and fast. The Chinese government is not ordering Mr Lai to avoid a legally due debt. We all want to know what - exactly - Mr Peace did with the cash. What a shower!
Remember: This whole business is not a result of anyone at West Bromwich Albion coming clean about the debt. It is down wholly to forensic work in to past accounts by one of our shareholders, top legal expert and Albion fanatic, Peter Wall - a man who is, quietly and determinedly, demanding answers to a series of key questions. This is an on-going scandal.
And is it true that Mark Jenkins was the Financial Director when the loan was taken out?
Usual pre transfer window PR spin machine is in full force I see...
Fact - Chinese outbound investment has historically fallen into three groups...Encouraged, Restricted and Prohibited. Outward cashflow to sports clubs went from 'Encouraged' to 'Restricted' last year to regulate large outflows. If the outflow is below a certain limit (dont recall the exact figure, but it's in the hundreds of millions) the transaction has to be recorded prior at a local level for approval, anything above has to be ratified and approved centrally by the Chinese government.
It may take a couple of months due to the red tape now in place, but it is completely legal to move funds out of China to facilitate ongoing servicing of initial investment.
Remember, investment is not Prohibited just restricted. I have seen working examples so this is not theory.
Blelow you will see comments off twitter , not mine but from people who know more on this Subject than myself.
There is also a rumour he has sold shares in his ECO business raising 20 million from this venture, all in all its fair to say after these findings he has managed to become more unpopular before, I would go as far as saying he will be taking from our club before long...
This guy has to sell before he ruins us, People believe there are investors willing to buy our club, yet he is rufusing, so what does this guy actually want from us ?
When the parachute payments have gone guys .......
WORRY !!!
Mattwilson@expressandstar
Owner Guochuan Lai has told #wba restrictions into foreign investment from the Chinese government are stopping him paying the £4.1m debt he inherited from Jeremy Peace https://t.co/rFpkTDbhfT
Surely the £4.1 million is classed as a debt owed and not a new investment?
Huge stink on Twitter,
This is what Lai claims yet financial investors on Twitter say it's not a new interest so there is no restriction to pay, it's a obligation to pay the debt !!
Here's one take on it off Twitter
Good job I was sitting down when reading this. Part of me wanted to roll around on the floor laughing at the sheer brass neck and audacity of it. Another part wanted to hit the ceiling in fury.
Let's remind ourselves just how serious this is: Jeremy Peace in 2014 took a secret £3.7 million loan (now £4.1 million, with interest) from West Bromwich Albion Group (currently owned by 12% of us shareholders) to his solely owned company West Bromwich Albion Holdings. Shareholders were then offered £3,000 for each of their shares, which many accepted. It took Mr Peace to above 75% ownership of our club - enabling him to sell. He sold to Palm for approximately £20,000 a share two years later. Surely, he has not used the loan money to actually finance his majority purchase of the club? This would be illegal.
If that was not bad enough - and yes, it's as bad as it sounds - he then refused to pay back the debt, leaving it with the new "owners" who posses 88% of our club. This business of "accruing interest" is also nonsense. Not a single penny of interest has been paid. Can any of us think of a single loan which we've had for five years during which no interest is paid, either monthly, quarterly or annually?
So now Palm come up with this scam...that they are not allowed to pay back a debt because it is linked to a Chinese government directive. What utter nonsense. Mr Lai-Low and his operative in the UK, Mr Li-Lower, (not to mention another Chinese penny pincher, with the cosy nickname of Ken, who is based at the training ground, going through the small change) need to start delivering answers - and fast. The Chinese government is not ordering Mr Lai to avoid a legally due debt. We all want to know what - exactly - Mr Peace did with the cash. What a shower!
Remember: This whole business is not a result of anyone at West Bromwich Albion coming clean about the debt. It is down wholly to forensic work in to past accounts by one of our shareholders, top legal expert and Albion fanatic, Peter Wall - a man who is, quietly and determinedly, demanding answers to a series of key questions. This is an on-going scandal.
And is it true that Mark Jenkins was the Financial Director when the loan was taken out?
Usual pre transfer window PR spin machine is in full force I see...
Fact - Chinese outbound investment has historically fallen into three groups...Encouraged, Restricted and Prohibited. Outward cashflow to sports clubs went from 'Encouraged' to 'Restricted' last year to regulate large outflows. If the outflow is below a certain limit (dont recall the exact figure, but it's in the hundreds of millions) the transaction has to be recorded prior at a local level for approval, anything above has to be ratified and approved centrally by the Chinese government.
It may take a couple of months due to the red tape now in place, but it is completely legal to move funds out of China to facilitate ongoing servicing of initial investment.
Remember, investment is not Prohibited just restricted. I have seen working examples so this is not theory.
2x Premier League Champ 1x Championship Winner and World cup Winner