Club Future - Administration or bust?

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Simon Jordan

@Sjopinion10
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[ltr]Whilst sad to hear [You must be registered and logged in to see this link.] going into administration ... I did tell say this weeks ago!This lies squarely with the current owner. frankly whilst tragic administration was the only answer ... it will now be bought out via a cva don’t be surprised if it’s Laurence Bassini[/ltr]


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Were not in administration but he's right about Bassini. He will again be the only interested party post admin.

H? Have you been watching Line of Duty?

rammywhite wrote:

boltonbonce wrote:Does anyone know how it will affect season tickets. I pay for mine with a roll on Direct Debit, so I'm assuming it'll roll on as usual to next season.
Or would administration be a problem?

I imagine the bank will keep on paying it until either you stop it- or the bank itself stops paying it.
The appointment of an administrator shouldn't really affect it. He or she will prepare the business to either solve its problems and become a going concern and leave administration with new owners ( i.e. be sold out of administration) or if its a real basket case just wind it all up. The next couple of months will tell. However I think it will re-emerge as a going concern with all the creditors accepting a low payout. I imagine that by the end of June they'll be looking for season ticket sales again. Many of us pay in one lump sum and that's one of the big cash inflows in a short period of time. So its something that the administrator will be looking to get off the ground asap

Thanks Rammy.

rammywhite wrote:H? Have you been watching Line of Duty?

YES.


Not anymore though.

The last series was one too many for me.

Leeds_Trotter wrote:Can someone confirm who are the secured lenders?

Michael James £5.5m, Ken £5m and Warburton £2.5m.

Eddie left money in the club which as I understood it prevented asset stripping, as a floating charge - which I believe is the first priority creditor.

I'm sure Rammy will set me right if I've not understood this properly.

Cajunboy wrote:

Sluffy wrote:

Nigelbwfc wrote:

terenceanne wrote:I don't think its totally fair to punish the club with 12 points in this case. If new owners take over how is it their fault what the old owners did. Who is getting punished exactly.
That being said if enough actual cash is spent on players and management then that deficit can be overcome IMO......it's only league 1 for fooks sake.

Except it's not likely to be 12. 12 is for admin, another 8 points for not playing a game, makes that minus 20.

We will be lucky to stay in league 1 with no players. You now have to hope and pray someone has the funds, before administration, because -20 means relegation to league 2.

The EFL have discretion on what they do.

Blackpool didn't complete a game a season or so ago when the crowd invaded the pitch and had a sit down protest against their owner - they didn't get any deduction for that, neither did they get any points for going into receivership (when the winders judge put them into Admin)

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That's very interesting, let's hope the EFL are just as lenient with Bolton.

20 points off punishes the hard working folk of Bolton not the owners who are long gone with whatever they could pocket. It's just wrong in this case IMO.

Sluffy wrote:

Leeds_Trotter wrote:Can someone confirm who are the secured lenders?

Michael James £5.5m, Ken £5m and Warburton £2.5m.

Eddie left money in the club which as I understood it prevented asset stripping, as a floating charge - which I believe is the first priority creditor.

I'm sure Rammy will set me right if I've not understood this properly.

I've not had a chance to look at the Register of Charges but this sounds about right. However it wouldn't surprise me if the register wasn't up to date. All fixed and floating charges stay in place during Admin so the pre-preferential creditors ( the football creditors) will get paid first ( after the Administrators fees and any ongoing business expenses). If loans secured by fixed charges are not paid back , then the charge crystallises and the creditor can take possession of the asset and may be invited to do so. Then the floating (secondary) charges kick in and they will either be paid or will be offered any asset on which the charge is based- whether they really want it or not. A car park is worth having as you can build on it ,if local authority building regs allow it. But who would want a football stadium with a bankrupt hotel stitched on to one end?
Unsecured creditors will get what's left. It might be an offer of a certain amount in the £, or they might wait until Admin is finished and try for a larger amount. But almost certainly a Newco will be set up transferring any remaining assets but leaving the liabilities behind in a shell company-  so they're over a barrel to accept and then disappear with no further claim.
The shareholders typically will get nothing as they will remain as shareholders in the old company but their holdings will be worthless.  They may not get any shares in the Newco as these will go to the new owner (who hopefully isn't the old owner in different clothing)
Some creditors may be offered shares in the Newco in exchange for their debt- a debt for equity swap. But that gets more complicated
That's my understanding of the current insolvency rules.

So what will happen with our assets, are they to be sold off or if someone was to purchase the club in admin, could they then pay off the money owed and us keep the assets?

Sale sharks AND the rfl want the Macron 

True story

y2johnny wrote:Sale sharks AND the rfl want the Macron 

True story

I think the talk is about buying it, then renting it out to us.

Bloody cheek.

That would never work, look at the mess Coventry are in with the same issue.

Club Statement

The Club would like to update supporters on the current situation in respect of the proposed administration process and the events at court yesterday given some of the misleading reports surrounding the matter.
Ken Anderson filed the Notice of Intent to appoint an administrator forms with the court yesterday morning for both Bolton Wanderers Football Club and Bolton Whites Hotel in his position as a qualifying floating charge holder on both companies. Later in the day Flidraw Limited, on behalf of the late Eddie Davies's Trust, also filed similar documents for both Burnden Leisure and Bolton Wanderers Football Club having served demand notices on both companies earlier in the day.
Although the procedure of formally appointing the Administrator can take up to ten days the hope is that this matter will be finalised very shortly allowing the work to commence immediately on the process needed to be undertaken.
The long term security of the club, its supporters and the loyal staff is paramount in the hope of a speedy resolution to the process.

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“The long-term security of the club, its supporters and the loyal staff is paramount in the hope of a speedy resolution to the process.” 

Anderscum said this ??? 

Seriously ???

They're polishing his brass neck as we speak.

boltonbonce wrote:They're polishing his brass neck as we speak.

Well better than polishing his love length.

karlypants wrote:

boltonbonce wrote:They're polishing his brass neck as we speak.

Well better than polishing his love length.

He wouldn't polish that. He'd be too cheap to pay a finders fee.

boltonbonce wrote:

karlypants wrote:

boltonbonce wrote:They're polishing his brass neck as we speak.

Well better than polishing his love length.

He wouldn't polish that. He'd be too cheap to pay a finders fee.

Leeds_Trotter wrote:So what will happen with our assets, are they to be sold off or if someone was to purchase the club in admin, could they then pay off the money owed and us keep the assets?

Its quite a complicated picture. If BWFC have defaulted on paying 
either the capital or interest on loans on which the lender has a fixed charge and chooses to exercise that charge then they can claim the asset as theirs and the asset leaves the club. So if someone has lent and the collateral (the security)l is a fixed charge on the car park, then the car park belongs to them. Hopefully they would lease it back to us if we survive at the Unibol. If there is a floating charge (i.e. not fixed on any particular asset and the club has defaulted on payment of capital ( the amount lent) or interest, then the charge crystallises and the lender can have their choice of any remaining assets covered by the charge. They don't need to exercise their right to 'receive 'or claim the asset- they could renegotiate the loan.
So, in answer to your question, virtually all the assets could end up in the hands of the lenders in settlement of their loans, and we end up with nothing.
I should add that this can't happen until the Administrator has produced the Statement of Affairs and that can take up to 8 weeks from the date of their appointment

Sluffy wrote:Club Statement

The Club would like to update supporters on the current situation in respect of the proposed administration process and the events at court yesterday given some of the misleading reports surrounding the matter.
Ken Anderson filed the Notice of Intent to appoint an administrator forms with the court yesterday morning for both Bolton Wanderers Football Club and Bolton Whites Hotel in his position as a qualifying floating charge holder on both companies. Later in the day Flidraw Limited, on behalf of the late Eddie Davies's Trust, also filed similar documents for both Burnden Leisure and Bolton Wanderers Football Club having served demand notices on both companies earlier in the day.
Although the procedure of formally appointing the Administrator can take up to ten days the hope is that this matter will be finalised very shortly allowing the work to commence immediately on the process needed to be undertaken.
The long term security of the club, its supporters and the loyal staff is paramount in the hope of a speedy resolution to the process.

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Seems like the problem is who has the primary right to appoint the Administrator. They'll all want to appoint their own man. Perhaps it will end up with joint Administrators