Reorganization

With another season in the Championship secured, the long-anticipated financial reorganization of the club has been proposed. In a nutshell:

£8.632 million in existing debt will be replaced by £10.142 million, raising £1.51 million in operating cash. The increased amount will come from Fordwat, Lord Ashcroft's ownership vehicle.

The debt matures in 364 days and is secured by Vicarage Road Stadium. Currently only the £5.99 million Fordwat debt is secured. Additionally, each £1 face value of the bonds comes with 20 detachable warrants that can be exercised at a nearly 50% discount to the current stock price of the holding company. Exercise of the warrants will dilute the current ownership by 84% and are good for five years.

Additionally, the notice of the restructuring states that the club will need to sell player contracts as well to maintain viability, so expect action during the summer transfer window.