According to the club’s directors, the Hampshire football club has been able to exit a company voluntary arrangement (CVA) two years early.
Aldershot Town only went into administration last year with debts of £1.4million. A CVA was then proposed and approved by creditors, allowing the club to begin an affordable repayment plan over a few years.
Shahid Azeem and his consortium bought the club in May 2013 after it went into administration and has since been focusing on paying back creditors and putting Aldershot Town in a better financial position. They have now revealed creditors have been fully paid off, allowing the club to focus on the season ahead.
A statement from directors said, “The board took the decision to clear the old club's debts at the earliest opportunity, believing it was the right thing to do for our creditors, many of whom we recognise are long-term supporters of the club.”
“This brings to a close what has been a challenging administration process, with a need to satisfy Conference rules to ensure probity in the game.”
Many football clubs enter administration to ease creditor pressure but then exit into a CVA so they can continue playing in the leagues. Administration safeguards the business while CVA proposals are being prepared. In this case, the CVA was a success as the club exited early after paying all creditors back fully.