Malaysian and Cardiff City talks underway but tomorrow is the key day

With Paul Guy back from Australia, T.G. flying in from Malaysia and Steve Borley acting as go-between, all parties met at Cardiff City Stadium this afternoon for preliminary talks with regards to the intended Malaysian investment.

This was a cordial session, the parties believed to be sharing a meal tonight but real business is conducted with the Cardiff City Board tomorrow but no firm news is expected until after the weekend.

Mark Watkins of Cardiff City Supporters Club commented about rising speculation that a deal is close, why they issued the press statement today and their expected developments, it's an interesting read.


To clarify a few points. Despite recent claims on the various messageboards, a deal with the Malaysians is far from done.

The details quoted in our joint statement were gleaned from several sources and we have also been in direct contact with the Malaysians, Steve Borley, etc. We wouldn't have gone to press with this statement if we weren't 100% sure of its accuracy.

The Malaysians have indeed made a formal offer, much of which will involve the purchase of shares to make them the largest shareholders in Cardiff CIty. There are a number of hurdles and conditions attached though, which whilst not insurmountable, are unlikley to be agreed overnight. Claims that things will be done and dusted by the weekend are we believe far fetched, but in our current plight time is indeed of the essence.

Ridsdale is now no more than a fly in the ointment - the Malaysians don't want him and whether he goes quietly or tries to claim his full compensation through the courts is neither here nor there. The real issue is that the Malaysians will not become major shareholders and saddle themselves with £40m of debt. In a couple of weeks the club will be in Admin and they could pick the club up for a lot less.

The whole deal hinges on the Malaysians coming to a deal with the many creditors. For unsecured creditors, it's fairly straightforward - if the club goes into Admin they will get far less (if anything) of what they are owed. We understand that a large proportion of the smaller creditors have already shown a willingness to negotiate - whether that's in the form of reducing what's owed or increasing payment terms is unknown.

The real crux of the matter here is the only secured creditors - Messrs Guy and Hall - PMG. For them, coming to an agreement with the Malaysians may reduce their pay off by more than what they think they can recover via the Admin route. In other words, they can make or break any deal and are the key players in all this.

CCSC and the Trust felt the time was right to exert some pressure on PMG. As local businessmen, they need to do the right thing by Cardiff City, as any other form of action would tarnish their reputation in South Wales. With Cardiff City only a couple of weeks from oblivion and a chance to be saved, we felt it was worth reminding them of this.