- The debt due to Ken Anderson
- The security for the debt due to Ken Anderson.
Lets take the second first.
Blumarble's loan (£4m plus interest not £5m) was secured in several ways which are set out in the files of each of the relevant companies providing the security and setting out the nature of that security.
The BWFC file sets them out in charges numbered 58 and 59.
At or about the same time as BM were paid off, two new charges/securities were created in BWFC numbered 60 and 61 taking the total number of outstanding charges on BWFC to 9. The earliest dates back to 2002.
There's a similar situation in Burnden Leisure.
There are several assets involved in the charges and there will also be a pecking order where an asset is charged to more than one person. i.e. whose charge gets first dibs.
The security for Ken Anderson's loan is numbered 61 in BWFC, number 23 in Burnden Leisure, number 8 in Bolton Whites Hotel, number 15 in Bolton Sporting Ventures and number 13 in Bolton Sports Village.
All of these charges were security for the money KA had borrowed off ED to pay off Blumarble which, with discounted interest, would have been c. £4.5m.
But that wasn't all he borrowed off ED. KA says it was £7.5m and I believe him. I don't think he could have kept the club afloat without it prior to the sale of Gary Madine in January 2018.
I think ED had lent him £2.5m as part of an arrangement made with KA in March 2016 and handed over by ED between July and December 2017.
I also don't think the £4.5m came to the club but was settled direct to Blumarble, possibly via ED's lawyers. The figure of £5m may also include some other outstanding bills and expenses.
The administrator's explanation of all this is not satisfactory in my view and appears to rely on the fact that a journal entry had not been put through the books to reflect what had happened.
Whichever way you look at it, the amounts said to be owed to creditors in total or to KA individually do not stack up and only start to make sense when adjusted to reflect KA's claim, which incidentally is also borne out by what EDT claimed was owed to them.
Given that scenario, its easy to see why KA and his legal team brought the hotel into the equation.