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Hereford United winding up order is adjourned

3 June 2014

The football club’s winding up petition has been adjourned until the 30th June, after Registrar Stephen Baister received information about a purchase of the club. The new owners have been allowed 28 days to look into a possible administration or company voluntary arrangement (CVA). 

Former boss, Martin Foyle, issued the winding up petition last month after being owed money since he left the club in March. Negotiations leading to the hearing yesterday failed to resolve anything, however the adjournment has allowed these negotiations to continue. 

A company voluntary arrangement is often a solution for struggling football clubs if they owe debt to HMRC and players as a repayment plan can be put in place over a number of years. The club can also continue to be managed by its directors and the club can play in the league, which can’t happen if the club is in administration.  

Sometimes the only option is to enter administration if creditors are threatening legal action and there isn’t enough time to propose a CVA. Once in administration, the club can be protected against creditors while proposals are being prepared. The football club can then exit into a CVA. 

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