Even a loss making business can make a nice tidy profit for someone willing to lend the money.
The principal amount is say £1 million, interest rates at 10% meaning an annual interest (aka profit) of £100,000 - but that is on the basis that the principal amount is not paid back. Now if the facility is a revolving facility then that £100,000 is then pumped back into the club thus then saying that the next annual interest is £110,000 and so on - therefore the amount being owed does indeed increase but also the amount of interest payments is also increased, whilst all the time there is no repayment on the principal amount!
Now, we all know that the contract seems to have a 10 year repayment plan as soon as Moonshift/Eddie decides to call it in, thus meaning the club has 10 years to repay the principal amount - but that means that the revolving facility ends and no more money is ploughed back into the business. So say the loans were recalled today which means we have 10 years to fully repay the loan and continue to pay the interest payments which means:
160million over 10 years is £16,000,000/year or £1,333,333.33/month (excluding interest)
But the monthly repayments (including interest) will be £2,114,411.79 - therefore annual repayments will be (including interest) £25,372,941.48 on a basic repayment plan. Thus meaning after 10 years total repayment (including interest) will be £253,792,414.80 meaning a nice tidy profit of £93,729,414.80 - now if the interest was just repaid then that would be a shortfall of £66,270,585.20 (although in reality the amount initially invested will have been recouped with a profit with the rest being the money that was re-invested through the revolving facility) and that is more than covered enough in the security/assets which is held for the loans (which according to the last accounts were in the estimation of £200million and after a depreciation value would take it down to approximately £100,000,000 thus covering the loss - and that is if the security/assets had to be sold off. As it is £66,270,585,20 is a manageable debt which most banks and finance companies would consider - especially with the security/assets involved and the value of the security/assets.
When a business buy-out happens it is normally very rare that the business debt is cleared, in fact it is normally taken onboard with the sale - most notable exception being Chelsea football club where the debts were cleared after the club was bought for £1 an was only hours away from going into administration! Whilst the biggest disaster of a company buying another company with debts has to be RBS when it bought ABN Amro and almost destroyed RBS, which had to be bailed out with tax-payers money, due to the book not being through reviewed before the purchase!!!
If it is true that Hilary Devey is serious about buying Burnden Leisure then, with the amount of assets and the claw-back clause could swing it in her favour - especially if she uses her other businesses as security via Cross/Company Guarantees and through the use of Debentures, Letters of Credit, Sale & buy-back leases and various Undertakings.
As for the various ventures of Eddies through Burnden Leisure Limited - Burnden Leisure seems to be a Holding Company that encompasses other companies such as:- (including but not all)
Bolton Wanderers Community Trust
Bolton Whites Hotel Limited
Bolton Wanderers Football and Athletic Club Limited
Bolton Sports Village Limited
Fronesis Learning Limited
The Eddie Davies Educational Trust
And as such each of these separate companies are a separate cost-centre and each are linked via Cross/Company Guarantees, etc etc etc - so if he did want to sell one part it is easy enough, through good accountancy, to move money around to make it more viable to sell. Lets not forget that it is Burnden Leisure Limited that has the debt and not Bolton Wanderers Football and Athletic Club Limited
Therefore if Hilary wanted to buy solely the club, it could be that the club could be sold debt free (although very much doubt it and would possibly sell with between 50-60% of the total debt).
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