Kilmarnock facing a winding up petition

22 January 2013

Kilmarnock Football Club have until today to settle a £15,000 debt or face the threat of a winding up petition from one of its suppliers which could put the club into liquidation.

But Craig Stevenson, the Kilmarnock-based food wholesaler who is after the money owed to his firm, last night denied he was involved in a personal battle with Rugby Park chairman Michael Johnston.

However, the letter to the club was leaked over the weekend so some damage has already been done.

A legal letter sent to the club reads: “Our clients have consulted us in relation to an outstanding debt of £14,907.26. We understand that you do not dispute this debt.

“Our clients have asked us to communicate with you and confirm that in the event our clients have not been paid on or before noon on Tuesday 22nd January 2013, we have instructions to lodge a winding up Petition against your company. It would be our intention to appoint a Provisional Liquidator to your company on the afternoon of that day or soon thereafter.

“In the event that we require to lodge a winding up Petition it will be based on the apparent inability of your company to pay its debts as and when they fall due in terms of the Insolvency Act 1986. In the event that a winding up Petition is lodged then the terms of this letter will be founded upon.”

The club played down fears that there would be a winding up petition and said that it was business has usual.  £15,000 is not a big debt.  BUT in Scotland a winding up petition is very damaging.  This is because once one is issued then it is immediately advertised and the clubs bank may well freeze the account.  Of course football clubs have had winding up petitions issued against them before (Hearts) and have survived but that is mainly because there are often multiple sources of finance.

Our advice would be to pay it pronto!!