by Reading4eva »
14 Jan 2024 13:07
Lower West Reading4eva Anyone who knows financing, can they give a little input into what the figures here mean.
Believe this is the company who own the stadium (and training ground?)
If I'm right in thinking it's in £140m worth of debt but I might be wrong...
https://find-and-update.company-informa ... ng-history
The ultimate Holding company is in Hong Kong. As with all Chinese companies though this is via a company based in the Cayman Islands. The June 2022 accounts clearly state that all the assets are being used as security for loans. The Bearwood training facility having a charge on it from the Bank of Bangkok.
Shortly the June 2023 accounts will have to be filed. Likely to show a far worse financial position.
Suspect that any sale of the club is being made more complex by what's invisible to the eye. Dai's own personal money can be written off. Other creditors whose loans are secured to the company's assets will either require repayment or the new owners taking on the debt. Which potentially makes the club worthless as it stands, Investors might as well wait and buy the club from administrators . Than pay Dai money and be saddled with a load of debt. While stll requiring the capital to invest.
Might as well buy a "Wrexham" or "Gillingham". i.e. with far less debt. Then use the money at hand to take the club forward.
It's a grim picture and I am sure your spot on its going to be worse. Question is if they disqualify Dai (and Pang as well hopefully) which will, no doubt force administration will this be a standard point deduction as it will be forced by the EFL.
It's a unique situation. When I moved to Bournemouth in 2008, the club were absolutely potless. They had to rely on donations from their CEO to stop liquidation. Thing is, Dai has access to money. Problem is negligence on his part, asset stripping which includes the stadium and training ground to his own companies, list goes on...
I wonder if the EFL are sweating as they put this club in the situation. Hopefully things will begin to move faster but I have to agree based on what you've said, Admin might be relegation but it might also be the best way out of this and enable the club to survive.