Re: Call for funds : Mon Sep 09, 2024 10:56 am
Bubba wrote:
The Administration route is an option. But it depends on probably two critical things.
a) What percentage of the overall debt is owed to HMRC? To exit administration, a CVA would probably be required where the creditors are offered so many pence in the pound for the debt owed. HMRC always vote against the CVA route. It would also require the agreement of the other creditors. Would they be on board?
b) The club would need to prove that they could afford to meet the CVA obligations as well as the ongoing running costs. When HTAFC came out of administration (and into a CVA) back in 2001, they were repaying £4k a month to the administrators whilst also having the ongoing running costs. A consortium of 10 businessmen each put in £10k.
So its doable, but it all depends on who the creditors are and whether they want to play ball.
a) What percentage of the overall debt is owed to HMRC? To exit administration, a CVA would probably be required where the creditors are offered so many pence in the pound for the debt owed. HMRC always vote against the CVA route. It would also require the agreement of the other creditors. Would they be on board?
b) The club would need to prove that they could afford to meet the CVA obligations as well as the ongoing running costs. When HTAFC came out of administration (and into a CVA) back in 2001, they were repaying £4k a month to the administrators whilst also having the ongoing running costs. A consortium of 10 businessmen each put in £10k.
So its doable, but it all depends on who the creditors are and whether they want to play ball.
Well according to recent posts the HMRC hearing is for this Wednesday.
Multiple theories about going into administration floating round and a equal amount of the pro’s and cons on how it could be good / onboard or bad / off for the creditors.
Heard from two different sources that the idea of a number of people making a monthly contribution towards the running of the club was the start of the problem when some of them stopped doing so early on.
On making monthly payment agreements, our record / reputation of sticking to them is dire at best.