As an employment solicitor I deal with a lot of insolvencies. This is my 2p worth.
The reason for the crisis: most business sail close to the wind on cash flow. The main oil to the wheels is the overdraft. Banks can pull the overdraft at any time. In the current climate they do so with regularity. If you're operating with a big OD to have it pulled will kill the business very quickly.
Without the overdraft the business will need a loan v. quickly. Banks aren't making business loans at the moment, particularly to businesses without assets.
Bradford will be relying on credit from suppliers. Once they get wind that the club is in trouble, they will want paying and pull credit. This is perhaps why the club was hesitant to reveal the true financial picture. That or the OD being pulled with a couple of weeks notice.
The business could go into admin, such as a pre pack to restart under a different company, but the vide I've been getting from the current board is that they've been waiting for someone to come along to take he club off their hands for years.
It's all well and good saying sack the board, but realistically who's going to take the club forward. There may be people waiting in the wings to buy the club out of administration. We won't know that until the club goes under am insolvency practitioner.
If I had the money, I certainly would buy the club now with the baggage of £1m of debts. I'd buy the assets in admin debt free including free of any wages owed.
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Pledge paid. Not difficult if you read initial instructions. Lets get this cash in and stop the in-fighting please. The Team are gelling and the good times could be on the way back.
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