IF all the money is owed to Davies then we will NEVER go into administration.
This is for two reasons.
The first is that only the people who are owed money (creditors) can invoke administration - so only Davies can actually take the club into admin.
Administration basically means an agreement to repay the creditors at what the business can actually afford - so instead of getting a pound back for every pound they owe, they get a percentage of what can be repaid - ie 'so much in the pound' say for example 10p in the pound. So someone is owed £1000 pounds agrees to accept just a £100 to settle the debt.
The second reason we will never go into admin is because Davies can simply simply work out what he can realistically be repaid by the club he owns and do it himself and 'write off' the debts on the accounts - he could for instance change the debt he will never get back into equity (ie in simple terms he changes it to an investment in to the club rather than a loan to be repaid).
If a club goes into admin, then they have to pay the Administrators (which is not cheap) and also take a 12 point penalty.
It's a no brainer really.
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