—– Original Message —–
From: “Lance Lee” <@tac-club.org>
Sent: Monday, July 12, 2010 11:21:02 AM GMT +09:00 Japan
Subject: President’s TWG Update
Dear Members,
On behalf of the Board of Governors, I would like to thank all members who voted on the recent proposal for a special assessment, as well as those who took the time to attend and share their concerns in the Special General Meeting (SGM) on June seventh . We on the Board are committed to addressing all concerns expressed with dispatch. At the same time, we are looking forward to an increasing number of members becoming actively involved as we work towards our shared vision — superior member service and satisfaction with sound financial management.
In this spirit, the Board passed Resolution #3649 which creates a team to spearhead action plans in resolving many difficult issues raised at the SGM giving top priority to the financial issues. This new nine-member team is returning to the work of the original “Transition Working Group” (TWG) established in 2009 to analyze and plan an optimal strategy for ensuring earnings before income tax, depreciation and amortization (EBITDA) in conformance with the debt-service coverage ratio (DSCR) called for in our loan covenants. The members of the TWG include four members of the Board of Governors (BoG) and five non-Board members. The TWG Chair is Mr. Dieter Haberl who is not on the BoG and the vice-Chair is Ms. Barbara Hancock who as Women’s Group President has Board status. The other Governors on this reconstituted TWG are Mr. Brian Nelson, Mr. Dan Stakoe, and Mr. Per Knudsen; the other non-Governor members are Mr. James Ashley, Mr. Bryan Gould, Mr. Takashi Maruyama, and Mr. Terry White.
The full text of Resolution #3649 will be found on the TAC web site.
The Board further resolved to thank the original members of the TWG for their intensive efforts to date.
Members will be regularly apprised of the work of our reconstituted TWG and we hope they may have your support as they progress in their complex undertaking.
Lance E. Lee
President
Clearly there is still no clarity!
The ‘Key Conditions of the JPY 11 Billion Loan’ document referred to states that this is no 25 year loan as sold to the members.
It is in essence a 100year loan.
After the first 25 years the Club will have paid JPY 9.8 billion in interest to reduce the loan to JPY 8.9 billion.
In round figures the members will have paid USD 100m in interest to reduce the principal by USD 20m.
Over 100 years the interest paid is equivalent to USD 270 million.
Whilst this may seem like Monopoly money to some it is very much the elephant in the room that no amount of obfuscation can hide.
Lance’s email refers to Article 3649 (see BOG downloads)which inter alia states that the debt service of the mega loan is Y550 million in year 2011 and Y660 million in 2012. This is contradicted by another BOG download re the laon terms which states that in 2012 the debt service will be less than that of 2011. It states that the amortization is 1% . Conclusion: at year 25 of the loan will leave members at that time with a whooping debt of Y8 or Y9 billion. Let’s call in the heavy-hitters, the corporate members Goldman, Morgan et al. who have hospitality divisions that can offer expert advice to the ER patient. Resgards greg carley