Bolton Wanderers report reveals more details of administration
THE procedure of dissolving a long-standing associated Wanderers company continued today with the publication of an administrators’ report on Companies House.
The Bolton Wanderers Football and Athletic Company Limited, which first came to be at the turn of the 20th century, is going through the process of liquidation after Football Ventures assumed control of the ‘golden share’ which confirms membership of the EFL as part of August’s takeover.
It is expected that liquidation will begin in the next couple of months.
As part of his duties, administrator Paul Appleton, working on behalf of Rubin and Partners, issued a statutory six-month progress report to the High Court which revealed several financial details associated with the sale of the club.
A total £1,200,000 will eventually be paid to administrators and their advisors.
The sale of Luca Connell, to Celtic, and Josh Magennis, to Hull City, raised a total £502,008.
Just over £700,000 was paid out in solicitors’ fees, including £27,500 to Walker Morris to cover legal costs for former owner, Ken Anderson, in his court battle against Laurence Bassini, who had taken out an injunction which halted the sale of the club.
“Clearly, the setting aside of the injunction was necessary to ensure a successful outcome of the sale of the business and assets,” the report detailed. “This required Mr Anderson’s assistance, which he was reluctant to provide without having his legal costs covered.”
Anderson also walked away with a £237,000 pay-off as part of the sale. Company records disclose that £1,578,042 was left outstanding to the Monaco-based businessman, but the report adds that “Mr Anderson believes the sum outstanding in this regard is circa £7.5m.”
Fildraw Limited, the company responsible for the trust of late owner Eddie Davies, continue to hold a charge over assets and are, according to records, owed just over £10m – although the report continues: “Fildraw believe the sum outstanding in this regard is circa £17m.”
Consulting Logistics Limited, the company hired to undertake discussions with the playing staff, negotiation of contracts and player sales were guaranteed a fixed £30,000 a month for their services, plus bonuses depending on performance.
At present £160,248 has been paid out to the company, whose directors include former Rushden and Diamonds owner, Keith Cousins, with another £510,800 still to be paid.
The report added that CLL was selected on the basis of “their experience, expertise and knowledge in the football industry,” adding that they were “instrumental throughout the sale process.”
Administrators, who had initially felt confident of a quick sale, also noted that “seemingly endless” delays placed massive pressure on the available cash reserves.
“With the new season approaching rapidly, a decision in respect of funding was required,” the report read. “There was simply insufficient funding available to discharge payments due to a number of parties, perhaps most importantly, the playing staff, who would be asked to participate in the first game of the season, due to take place on August 3, 2019.
“As a result, the majority of the funds held in the estate bank account were utilised to discharge the salaries of the playing staff, most of who had refused to participate unless their salaries were paid.
“This placed significant strain on the administration funding, which was exacerbated further by the inability to secure any significant income from other sources.” [You must be registered and logged in to see this link.]