council approached by club to force admin.

[akay313]

I thought I heard that and then assumed I'd got it wrong!!!OMG

 

all they kept saying was that the club owes more than £750 to the tax man, and that the exact figures weren't disclosed.

[Heatwave]

The Administrator usually charges £200/300K for his and his staffs services which could last a few weeks.( previousy quoted on here)

 

Wouldn't that be extracted from (1) the buyer(s) or (2) from the club's assets if no buyer and the club is liquidated?

[Fosse69]

Still not sure why the directors cannot continue without Miller.

I understand the rules etc but i agree with Caroline ' Miller went weeks ago ' I dare bet this rule only works on paper - having 4 named directors - i dont believe that all 4 need to be present on all decisions [ in person or phone link ] or that all 4 have to sign for all decisions agreed.

 

Also - How come Miller alone agreed the £300k loan ?

The other directors say they knew nothing! Surely this is more lies ?

 

Where has that £300k gone ? No one has ever commented on this.

If Miller has taken some or all then why are the OLD not telling us this

Not just lies, could well be criminal?

[mabasfc]

I'm shocked to hear this news tonight and my and other Accy fans are all feeling for you all,as we have been through it our selves 2yrs ago.really hope you servive..up the vale===

[sunny boslem]

I'm shocked to hear this news tonight and my and other Accy fans are all feeling for you all,as we have been through it our selves 2yrs ago.really hope you servive..up the vale===

 

nice one see you saturday sadly we need admin to move forward

[Robbie Earle's Perm]

I'm shocked to hear this news tonight and my and other Accy fans are all feeling for you all,as we have been through it our selves 2yrs ago.really hope you servive..up the vale===

 

Thanks and if you are feeling that sorry for us the least you could do is let us have three points on Saturday in our fight to stave off relegation! ;)

[scVale]

I'm shocked to hear this news tonight and my and other Accy fans are all feeling for you all,as we have been through it our selves 2yrs ago.really hope you servive..up the vale===

 

really, christ conner remember accy stanley in admin, when was that exactly?

[Jacko51]

I'm a bit confused about this 'loan from the Council to put us in admin' bit.

 

Surely it doesn't cost anything to go into admin? Just we only need a creditor to enforce it? I'd appreciate if if anyone who knows about such things could post.

 

The club has no money - as shown by the inability to pay the wages today. An Administrator needs funds for the daily running of the club - paying wages and the like.

[vale in the blood]

Jean...thanks ..finally i understand. i was lost with all this. my only question is how will the council get there cash back?? surely they wont want to throw 300k dwn the drain.

[Warren]

I am concerned that the media don't have enough information to provide precise and meaningful coverage presently and that is causing greater concern than may be justified, accepting the position is bad.

 

Normally a creditor, like HMRC, where the amount owed is greater than £750 can file a Statutory Demand. This allows 21 days for response after which the creditor can file for a Winding Up Order that leads to the appointment of a receiver and the liquidation of the company after a further set period of time.

 

I understand the Council is in discussions with the club and seeking a way in to administration which is one of the ways out of the Statutory Demand / Winding Up situation. An Administrator will seek to find a way forward for the business and a rescheduling of debts for repayment over say a 5 year period. It is not a free way forward and an action of selling the business as opposed to liquidating it must be focused on debt repayment. HMRC are challenging the Football Leagues Preferential Creditor Rules and if the Judge in the next week or two rules in their favour this could make worse the situation at Port Vale putting on more pressure to liquidate.

 

But, thank goodness the major creditor is the Council. This is a more sympathetic lender than a bank which recognises social and economic interests in its actions. That is not to say the Council can be anything other than concerned to have the loan it has given repaid and probably can't loan more to help the club. But it can work constructively with the club.

 

The misconduct of the directors in not publishing the financial statements for 2010/11 and generally keeping people in the dark means we are all unsure of the actual level of debt and shortfall in income / increased expenditure against that budgeted. However, what we do know is the statements of the two ex-directors who are on the proposed interim board that the club was not insolvent when they resigned. So most concern is over the debts run up over the last year or so outside the compass of the Council loan. If HMRC have intervened promptly one hopes the debts to them have not accumulated in Rangers like proportions. The other debts are likely to be significant, and we know of the Gibraltar loan, but provided the Council remains in a stable and cooperative position I think the club can get through this.

 

It looks like new ownership is needed and the shareholders will have to take the hit in losing their investment. All monies due to the club under guarantees or for legal commitments to buy shares must be called in etc. But it is possible to see a way through this.

 

Another way forward, if things remain in the boundaries of reasonableness, is further money from fans and shareholders. I think a fundamental change in governance would be called for first which ensures present directors, past directors and affiliates are removed and a genuine community interest company is established.

 

I posted a lot today about how the Council giving more money etc could be ultra vires. But the Localism Act 2011 does give the Council greater flexibility (Kiss Eric Pickles!) and the ways in which that act can be used are largely untested in Council's presently. So we shall see what the Council can do.

[MagicFlask]

(Kiss Eric Pickles!)

 

That really isn't a pleasant prospect......not even if he personally intervened and saved the club on his own.........

[Warren]

That really isn't a pleasant prospect......not even if he personally intervened and saved the club on his own.........

 

I know. If it is any consolation I sent him a threatening letter over another matter last year, and I seem to be winning the argument presently.

[Santa]

Judging from Martin Tideswell's tweets, his endgame is for the Council to intervene and put us into administration.

[Fosse69]

Wouldn't that be extracted from (1) the buyer(s) or (2) from the club's assets if no buyer and the club is liquidated?

 

I think it is an insurance against insufficient assets for (1) and to avoid liquidation (2) which would mean AFC Burslem. Both very worrying. I think our financial experts are offline working behind the scenes I hope. Maybe in a few days a coherent picture will emerge.

[Leicestershire Valiant]

I'm a bit confused about this 'loan from the Council to put us in admin' bit.

 

Surely it doesn't cost anything to go into admin? Just we only need a creditor to enforce it? I'd appreciate if if anyone who knows about such things could post.

 

If you want to file for bankrupcy, you have to pay to file it. Presumably its the same with administration.