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Bury FC Delay CVA despite Winding Up Petition

10 July 2019

2 comment(s)

Bury FC logo

Manchester based football club, Bury FC, have requested more time for them to consider a rescue plan.

The newly promoted club are experiencing financial difficulties and received a winding-up petition from HMRC, due to unpaid debts, adjourned at the High Court in June, for what would be the third time in a few months.

The club were given six weeks to sort out their future. Steve Dale, owner, was encouraged to use the insolvency mechanism of a Company Voluntary Arrangement, to settle the club’s hefty debts. He, himself stated in April, that the club’s financial situation was ‘’significantly worse’’ than he thought, when he took over.

Only yesterday (9th July), during a meeting with the Giggs Lane Club’s creditors, was the CVA decision postponed for a further six weeks. Despite their promotion to League One last season, if creditors agreed to the deal, the Shakers would face a 12-point deduction.

Inquesta Corporate Recovery & Insolvency are the potential supervisors for the proposed CVA. The director, Steven Wiseglass said: ‘’The creditors have adjourned their decision pending further negotiations and are scheduled to meet again on Thursday 18th July. We continue to work closely with the club, its director and the creditors to try to ensure a successful outcome.’’

Additional to the financial issues, Bury FC have been in dispute with Manchester City, who are to serve them a notice to leave their Carrington Training Ground. Manchester City allowed the Shakers to use their training ground since 2014, when they moved into a new City Football Academy. According to Manchester City Bury FC have failed to meet their obligations in the deal, regarding maintaining the buildings and pitches and numerous break ins have occurred. Once the notice is served, City would allow Bury until October, to find an alternative training facility.

What is the future going to be like for Bury FC? Will they be rescued? Or will they face further challenges? What do you think? Comment below…

Categories: What is a CVA or Company voluntary arrangement?, Winding up petition

Comments

I gather Steve Dale has agreed a CVA with creditors which reduces the debt from around £14m to £3m+
He now says he is willing to sell the club and would expect any new buyer to fund the £3m+ for the creditors.
I’m no expert but surely if a new buyer comes in who is going to pump money into the club, then it is no longer insolvent and the creditors will therefore want ALL their money back.
Am I missing something?

David14/08/2019 15:34

Bury FC - a football club dear to my heart - first football club I went to in the late 60s - sixpence to get in the ground and another sixpence to get in the enclosure - hope the club get back on track

John14/07/2019 21:08

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