It didn’t take the Co-operative Bank long to snaffle up the land the Glasgow City Council approved to be sold to Celtic on 12th December 2013. That’s our’s said the bank on the 24th December 2013.
Celtic PLC made a company posting on Christmas Eve which was spotted by pzj. It looks as if the Co-operative Bank have called for more security on Celtic’s low interest loan facility. See New Mortgage/Standing Charge below signed by CEO, Peter Lawwell. The Co-operative Bank look like they are getting heat on the generous terms of their loans to Celtic which are sure to be part of the Treasury inquiry to be announced early this year.
Celtic appear to be the only major football club that the Co-operative Bank loans funds to now according to the Co-operative Bank Financial statement 2012 page 65 :
The £33.2 Million matches Celtic’s loan facility and there are smaller amounts being unwound/written off but by far, Celtic’s stands out on it’s own. The Co-operative Bank cannot claim they have been offering the same terms to several clubs apart from their favourities.
Question: If the Credit Risk is so strong why are the bank asking for more and more land?
Co-operative Bank Standing Charges
Since 2001, when the Co-operative Bank gave Celtic the original loan and overdraft facility, the loan/overdraft amounts have not changed. Originally, in 2001, only Celtic Park was security. However, even when Celtic has been rolling in the money from the UEFA Champions League, the Co-operative Bank has requested more security and Celtic has fed them as much land as they could acquire:
2009 The Celtic Triangle
2011 Land South West of Glen Road Lennoxtown
2013 More Glasgow City Council land
Questions: If the original 2001 Co-operative Bank loan was kosher, above board and properly risk assessed then why has so much more security been demanded in the years since? And especially now, why when all the Champions League money is flowing too, at a time when apparently risk has been reduced?
New Mortgage/Standing Charge