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Takeover company for Bury FC now say they are unable to proceed, leaving the club's future unlikely

24 August 2019

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Takeover company for Bury FC now say they are unable to proceed, leaving the club's future unlikely

UPDATE 27/08/2019

It has now been announced that the company who were attempting to rescue the club, have pulled out of the deal. C&N Sporting Risk have stated they are ''unable to proceed'' with the takeover.

Being as the EFL only gave the extension until 5pm today, it is looking very unlikely that a deal can be made in such short notice. Will C&N Sporting Risk give in? Can a compromise be made? or is this the end for the shakers?


24/08/2019

Bury FCs owner, Steve Dale has accepted a takeover offer from C&N Sporting Risk.

The club has been facing financial difficulties for months – with debts amounting to more than £40m.

The English Football League (EFL) gave an ultimatum that if the club could not find a buyer by midnight, it would be been rejected out of League One. However, late last night, a buyer was found. This was on the conditions of being agreed by the EFL.  To Mr Dale’s relief, the EFL have given an extension until 17.00 on Tuesday.

C&N Sporting Risk, the London based consortium, believe that Bury should have a club, even if the short-term future is challenging – long term future viability can exist. Rory Campbell and Henry Newman of the Sports analytics company, are now taking time to analyse and discuss the realities of Bury’s finances. Talks with EFL are underway.

There is still much controversy over the debts. Mr Dale, who brought the loss-making club for £1 in December, claims he is not the ‘asset-stripper’ he is made out to be. Instead, he believes he is the one who ‘saved’ the club.

When he brought the club from ex-owner, Stewart Day, it was said to already be insolvent. Dale launched the insolvency mechanism of a CVA (Company Voluntary Arrangement) giving hope for the club. However, the EFL decided to reject this.

No team has been removed from the EFL since 1992 when Maidstone were liquidated.

How did it get to this?

  • By the end of April, the club were promoted to league three
  • Winding up petitions were ordered from the court due to being unable to pay staff and players in an appropriate time
  • The winding up petitions were adjourned three times before being dismissed on 31st July 2019
  • A CVA was accepted and approved by creditors to help debts be settled (Unsecured creditors such as HMRC, will be paid just 25% of their owed money
  • Due to EFL rules, a 12-point deduction was received
  • The first six matches for the Shakers this season have been suspended as well as being given a 12-point deduction

 What will the outcome be? Will the deal be accepted? Will the club be sold?

Categories: Winding Up Petition, CVA

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