Dunfermline Athletic Football Club Limited Additonal Due Diligence Questions 20 March 2013
1. Dunfermline Athletic Football Club Limited & companies within the
same group – Some Additional Due Diligence Questions (not
exhaustive) – 20 March 2013
1. Has DAFCL already drawn down any future income which will become due from Scottish
Football authorities?
2. If so, how much and what proportion of the total eventually due does this advance draw
down represent (approximately)?
3. In your opinion, is there a reasonable prospect that, in the foreseeable future, EEPL could be
unable to fulfil the terms of the proposed new commercial lease between EEPL and DAFCL
eg due to solvency issues within EEPL or CHL?
4. Are there any possible financial implications for DAFCL in the loan and other arrangements
described in the first paragraph of Note 28 to the 2011 audited accounts of CHL? For
example, is loan interest up to date; what are the implications in GM reducing the CHL
shareholding in DAFCL to nil; have the CHL SSAS pension trustees given their agreement to
this proposal?
5. Are there any security arrangements affecting the lease which TPT has on the Pitreavie
training ground?
6. Are the proposals which the Steering Group is currently considering regarding the injection
of fresh funding into DAFCL to be implemented via a new share issue or via a donation or via
some other means? Please provide clarity.
7. Are there any 'contra' type arrangements affecting any element of the proposed new
funding eg offset against future hospitality or stadium repairs, which by their nature could
affect the true 'value' of the new funding?
8. What contractual arrangements (including fees, remuneration or equivalent) have been/are
to be entered into with the new directors of DAFCL?
9. When will the existing directors of DAFCL resign?
10. When will the new directors of DAFCL be appointed and who are they?
11. What is the actual amount of additional funding being provided to DAFCL by new 'investors'?
12. What are the names of the new 'investors'?
13. Has GM obtained the written, legally valid agreement of all other existing shareholders in
DAFCL to dilute their existing 6.4% shareholding entirely?
14. If not, when will this agreement be sought and how?
15. What are the implications for DAFCL's solvency if the existing minority shareholders in
DAFCL do not agree to the new investment proposals and the complete dilution of their
existing shareholdings?
16. What are the implications for DAFCL's solvency if the existing (non CHL related) long term
creditors of DAFCL do not agree to the new investment proposals and the necessary
amendments to their loan or equivalent agreements with DAFCL.
