Analysis of Bolton Wanderers' Financial Situation Part Two

In this second part of his look at Bolton Wanderers' unique financial situation, long-time reader and contributor BlackpoolWhite has the following to say:

It's no great secret that ED and PG have been touting the club for some kind of investment from any source possible. At nearly 170 million in debt it doesn't look like an attractive investment does it ?

Because of the company being a Private Limited Company as opposed to a Public Limited Company there seems to be more of a privacy issue with the publication of accounts.

As previously stated we lost nearly 25% of our fixed assets but we will probably not know what percentage has been moved across to another company or privately sold for a pittance. This I suspect has happened in the last six months, outside the "fixed asset" period of accounting for last financial 12 month period.

Here goes.... BL debt stands at 170 to which most is owed to ED/Moonshift Investments as our public knowledge repeatedly stated by our chairman...

Now, no mug in the world would write off completely 170 million even if you ate breathed slept inside The Macron and had watched/suffered the years of our pain that sometimes can be supporting Bolton Wanderers. One thing must be said about ED, at least he put his money were his mouth was.

To me it would make sense to verbally propose to offer a debt for equity swap.

That would be fixed assets (Land) in my opinion to ED to cover part of the debt. You now have to look at the bigger picture this land may now be worth 30 million, put a proposed school or academy on it linked to BW then it could be worth 300-400 million.

Does that not then mean for all the financial hardship ED may have encountered he would nearly more than covered his 100 and odd debt owed from Burnden Leisure. Now, BLs debt has decreased by 30 million so to speak but we have lost an asset so the debt to asset ratio is still unsustainable.

Similarly this could apply to any other debtors we have. They get a piece of a pie for a nominal amount against debt owed. So should there be no oppositions to the striking off, our current debtors would write off losses against their tax liabilities. So everyone's a winner except HMRC.

Should this go through, Bolton Wanderers could then be sold as a going concern to a more interested foreign investor or even Irish consortium who I think it will be the latter who will come aboard.

Again I suspect behind the scenes ED and PG will retain some kind of interest be it land owners gathering a rental income for the stadium and Bolton Wanderers will just be a name and own nothing....

As for any Football League implications this is way beyond me but I assume it is Burnden Leisure who is a fault and not Bolton Wanderers although they own us so we could escape a fine or points deduction. Administration would cost us dearly though..

It wouldn't surprise me if Bolton had already been sold verbally on the provision they lose their debt and the simple way is to strike off having " looked after preferred debtors." Once this striking off is approved, Wanderers is officially sold and the we have a new clean fresh faced Bolton Wanderers and the new era begins.

This could possibly be the best thing certain people could have done for the club while ensuring their own financial futures.