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Administration

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Bulls get another reprieve

The long drawn out saga of Hereford United has seen the club given another seven days by the High Court to sort out its financial affairs and pay its debts.  

The club says that new investment is coming in, but the question is whether it is happening quickly enough given that Revenue and Customs want the £170,000 they are owed.   The former management team is also owed money.  It is evident that the patience of the court is wearing thin.

Bulls on the Brink

Hereford United, expelled from the Conference and playing in the Southern Premier League, are once again on the verge of going out of business.

The Bulls tried to agree a Company Voluntary Arrangement with creditors, but there was insufficient support.  In particular, Her Majesty's Revenue and Customs, which is owed £170,000, refused to agree. For some time now the tax authorities have lost their patience with football clubs them using them as a free credit card at the expense of other taxpayers.

Aldershot Town out of administration

Aldershot Town have exited administration, having settled all outstanding debts with the club's remaining credtors and completed their Company Voluntary Arrangement under a year after being taken over.

While they were in administration, they weren't entitled to a share of the Conference's central funding, so receiving that again will be a big boost.   They have also managed to cut overheads by about 60 per cent in a bid to put the club on a more stable financial footing.

Liquidation threat lifted at Hearts

The threat of liquidation has lifted from Hearts after failed Lithuanian bank Ukio Bankas agreed to sell its shares in the club for a reported £2.5m.   The bank was the club's biggest creditor and held 29 per cent of the shares as well as security over the stadium.   Hearts should now be able to come out of administration before too long.

Hereford United on the brink

Hereford United are on the brink of administration after they were served a £36,500 winding up order by HM Revenue and Customs.  Hereford's MP has asked for a degree of forbearance, but football clubs can't be exempted from meeting their tax obligations.

Non-league clubs in trouble

A number of non-league clubs are currently facing financial difficulties. This winter's wet weather has led to postponed matches and hit cash flow. When matches are rearranged for midweek, takings from the gate, bar and burger stand are often depleted.

As anticipated, Eastwood Town have folded and, elsewhere, Bashley FC are facing financial challenges. Corby Town face the threat of administration. As in the case of Eastwood, they are in dispute with the local council. Such disputes are more likely with government funding to local authorities continuing to be cut.

Winding up petition filed against Leeds

Leeds United's shirt sponsor Enterprise Insurance has filed a winding-up petition against the club over an alleged unpaid debt. The company's managing director Andrew Flowers was part of the Sport Capital consortium that had an attempt to take over the club collapse last week.

The case will be heard in the High Court in March. In 2012 the Gibraltar-based company lent Leeds £1.7m at 7% interest for repayment in 2015. The petition was filed on 29 January.

Hearts closer to exiting administration

Hearts should be out of administration before the end of April after a deal to transfer shares to prospective owners Foundation of Hearts was finalised. The club’s administrators, BDO, confirmed today that Ukio Bankas Investment Group (UBIG) have formally agreed to hand over their 50 per cent stake, pending legal approval in Lithuania.

Badgers may be culled

The Badgers, as Evo-Stik NPL DIvision One South side Eastwood Town are known, may have played their last game. Their last two matches have been cancelled. In 2011 they came fourth in the Conference North, but could not enter the play offs because of ground grading issues.

Hereford face winding up order

Hereford United have spoken to an administrator over their financial woes, admits chairman David Keyte. Keyte says United have sought the advice of an administrator ‘should the worst scenario actually be necessary’. He has issued a new appeal for fresh investment.