[Archived] If we go into administration...

[Brian-Potter]

27 minutes ago, RV Blue said:

So the company that is listed on the stock market (Venky's India Ltd) isn't even their main business? Venky's India Ltd's share price has tripled since January interestingly.

I believe the increase in share price relates to new regualtions in India relating to farming and poultry industries and Venkys are the only compliant company in India which further strengthens their grip on the market.

[tomphil]

I've read a lot of Bolton fans going on about 'fake debt' created on their books by Davis and many reckon he was taking money out. No idea how that would work but makes you think.

 

[Dunnfc]

Just now, tomphil said:

I've read a lot of Bolton fans going on about 'fake debt' created on their books by Davis and many reckon he was taking money out. No idea how that would work but makes you think.

 

He loans the club money but takes it back in interest till the loans are covered by the interest paid from the initial capital provided but the "loan" still requires repaying as only the interest on it has been paid.

[joey_big_nose]

On 05/09/2017 at 09:32, Brian-Potter said:

The potential problem that stands out with any administration is that the bulk of the clubs debt is owed to the owners (well technically Venkys India Ltd) via Venkys London Ltd. Therefore there would be little benefit for the owners to place us into administration as this would impact directly upon them and there core business. Although you could argue that they are never going to get that money back it does however still appear as an asset on their balance sheet. There is then a knock on from this in that if a third party tried to force administration again the owners are unlikely let this happen due to the reason mentioned previously. Especially when we consider that the amount of external debt is relatively low and when backed into a corner they could easily raise funds to stave this off. Take into account that Venkys India Ltd looks set to break the £1bn barrier in terms of turnover for the current year with projected net profit of circa £200m (and yes I am talking pounds not rupees!) then the only reason we would enter admin is if the owners chose to let it happen and wanted out, bearing in mind that there are supposedly parties interested in buying the club then they would explore that route for exit rather than administration. 

On a side note I have quickly analysed the latest accounts for Venkys India (not easy as things are done differently than here) and as stated by another poster they have a number of fixed charge loans outstanding with various Indian Banks. These are all secured on land, property and assets based in India and the bulk of these are to fund expansion and working capital. The amounts borrowed are at a favourable interest rate and are in no way excessive when related to the company's performance.

Incompetent with no understanding of football or regard for our club, or the damage they have done to it - without doubt!

Idiots with no business acumen and short of money - I'm not so sure!

As much as I hate to say it, and I really hope I'm wrong, I think we are stuck with them. 

This is the best explanation of why Venkys treat us the way they do. It makes total sense, and consistent with all their behaviour to date. IE keeping us even if we are losing money is the lesser of two evils due to the balance sheet situation which I had never considered.

Depressing. But thanks Brian P for the succinct explanation.

[tomphil]

Yep in their tiny minds and the over all balance sheet Rovers is probably down as a 100 mill oversees asset / investment.  Also another reason why them or their empire being worth 2 billion should be taken with a pinch of salt as the books don't always tell the true story !

[AllRoverAsia]

Just now, tomphil said:

Yep in their tiny minds and the over all balance sheet Rovers is probably down as a 100 mill oversees asset / investment.  Also another reason why them or their empire being worth 2 billion should be taken with a pinch of salt as the books don't always tell the true story !

They kill chickens on behalf of 1.3 billion mouths at home. Bit difficult to mess up even for the Pune Rao cretins.

[tomphil]

Just now, AllRoverAsia said:

They kill chickens on behalf of 1.3 billion mouths at home. Bit difficult to mess up even for the Pune Rao cretins.

Amazing what you can hide in the books when the turnover of feathers is so vast and quick I bet.

[AllRoverAsia]

Just now, tomphil said:

Amazing what you can hide in the books when the turnover of feathers is so vast and quick I bet.

They have the advantage of being in Pune which has the distinction of being recently recognised as the most corrupt city in India.

http://m.timesofindia.com/city/pune/pune-pips-mumbai-as-corrupt-capital-most-babus-nabbed/articleshow/58528379.cms