Bolton Wanderers are set to go into administration, meaning an automatic two-year transfer embargo and immediate 12-point deduction after chairman Ken Anderson confirmed that creditors Blu Marble Capital Ltd have rejected his offer to repay a £4m loan plus interest.
In a statement published on Bolton's official website, Anderson suggested that the decision to reject the repayment, taken by Stuart Wilson and Michael Henson of Blu Marble, can only have been made for 'personal reasons' by the pair as 'their actions do not make commercial sense'.
A report from The Bolton News revealed that when considering only debts currently due and outstanding bills, the funding gap for the next 12 months will be around £13m. The same report claims that Blu Marble are prepared to fund administration for 'several months' until a credible buyer is found. Anderson's view is that refusing the loan repayment will make that harder.
"As l understand it they are currently taking legal action against their own lawyers in respect of a negligence claim on the original transaction with Sportshield Ltd and are expecting to receive substantial compensation from the lawyers' PI insurance and this may explain their actions," Anderson said of Wilson and Henson.
"They will now need to fund the club administration going forward, which will take a minimum of three months and will automatically put the club in a two-year transfer embargo and a minimum immediate points deduction of 12 points.
"In my opinion, their actions will substantially reduce the value of the club in respect of any future sale and will make it far more difficult to find a future investor/buyer.
"I would like to take this opportunity to thank the three debenture holders who all agreed to make concessions in order to try and reach a settlement with Blu Marble, but unfortunately these were not accepted and they will all now play a major part in the administration discussions going forward.
"I will continue to do everything possible to help the club and have let the administrators know that l will do my best to assist them."
On the pitch, Bolton have started the Championship in good form and currently sit in early playoff contention after taking 11 points from their opening six games. The impending points deduction will ,however, send them to the bottom of the table with -1 point.