The Council and The CVA

[Samdy Gray]

As RobT and has mentioned elsewhere, word on the street is the Council are not happy with the prospect of the CVA being renegotiated and will be writing to the club to let them know this. Alan can verify this.

People have been saying the Council don't hold much clout because they aren't a preferential creditor, however I've been doing some digging around the CVA rules etc. and have come up with this:

 

7.

(3) If any of the company's creditors or any other person is dissatisfied by any act, omission or decision of the supervisor, he may apply to the court: and on application the court may:

(a) confirm, reverse or modify any act or decision of the supervisor,

(b) give him directions, or

(c) make such other order as it thinks fit.

Taken from http://www.insolvency.gov.uk/insolvencyprofessionandlegislation/legislation/uk/insolvencyact.pdf

So if the Council want to, they can apply to the Courts to have any decision overturned, i.e. the extension of the CVA.

[janaage]

I'm not being funny here but would the council threaten the club with closure??  Surely they cannot be seen to be actively trying to close STFC.

I want this lot out as much as the next man, but if the other creditors were happy with the renegiation and the council spat the dummy, endangering the life of STFC, I'd be fucking livid.

[Samdy Gray]

We don't know what the Council's intentions are, but I just thought I'd let people know the powers they have.

It's not just the Council though, any creditor can apply to the Courts. I suppose those only owed small amounts will get laughed out of Court, but others may be more successful.

[Batch]

I think it unlikey the council would call for STFC to be wound up. They wouldn't get much money back that way. More likely to allow the administrator more time to see if anything comes of a takeover/investment deal first.....

It is safe to say though that the delay won't exactly improve relations between club and council. Could be important when it comes to ground redevelopment?

But I'm just guessing...

[Ardiles]

I don't think the Council would call for the club to be wound up.  But take it in context.  We will have Bill Power taking steps to have his cash recognised as a loan (repayable on demand), the Council putting their foot down regarding their share of the CVA.

It all adds up to a situation in which the board is entering its end game.  If they decide to play the long game with the aid of the possibly-existing investor, the first £2.1 million of the new investment will barely have time to clear in the club's bank account before it's gone again.

It's madness, and has to stop some time soon.  Diamandis must feel like King Canute (OK - I've added a couple of vowels there), but he cannot stop the waves advancing even if he thinks he can.

[Bushey Boy]

Once the new investor is announced I think Mr Powers representatives should get in touch.

The board will talk their way out of it all unless he goes direct

[pauld]

Tony Norris asked the council about this back in February - this is his post from the Trust website back in Feb:

With the club declaring that they are trying to renegotiate the CVA payments, I asked the question at the Council Cabinet meeting tonight, if the council had been approached about this. The short answer is NO! And according to Councillor Nick Martin, lead Member for finance, they would not countenance any change in the payment due.

They stated that the payment for 2006 has been missed and that Hacker Young are meeting with the club tomorrow (8/2/07) to discuss this. The Council are due approx £100,000 in the last CVA payment due in June this year.

[RobertT]

Yep, it seems they re-confirmed that stance last night and also suggested they had advised the club of their feelings.

I doubt they would really end-up forcing the issue if they get out voted, but it will clearly put more Councillors in a negative frame of mind when considering STFC.

[Power to people]

In one sense though the council has a duty to the tax payers of Swindon to recover owed monies so they may be forced into trying to recover the owed monies.

[Razzledazzle]

I've been reading some things today and this article shows the board have always said they are going to do things and improve the club etc and have made the situation worse than it was before:
http://archive.thisiswiltshire.co.uk/2001/8/21/211090.html

[Summerof69]

The article says the following :

The Puffett/Carson/Wills/Diamandis consortium has written to the DTI petitioning for an AGM at the earliest possible date.


...But wasn't Diamond Mike a banned company director then !!

[RobertT]

yes and he quickly got replaced by the time the Consortium next gets a mention.  Depending on the article it became either Holt or Prescott, the latter being the person who was used to actually petition the court.

Holt then gets sidelined from the Consortium but becomes Chief Exec/MD and then another year or so on we have Sandy Gray and Prescott resigning from the Board.  Meaning that Sandy Gray and Bob Holt have both left and come back several times.

[ronnie21]

yes and he quickly got replaced by the time the Consortium next gets a mention.  Depending on the article it became either Holt or Prescott, the latter being the person who was used to actually petition the court.

Holt then gets sidelined from the Consortium but becomes Chief Exec/MD and then another year or so on we have Sandy Gray and Prescott resigning from the Board.  Meaning that Sandy Gray and Bob Holt have both left and come back several times.

Holt has had more comebacks than some 1990's boy band, come to think of it he may have been in one of them as well!!  This was the guy who said they would sell the club if somebody came along willling to buy it "snap his hand off" and "smell the shoe leather" being two of the phrases amongst many others.  Shake a stick at that then Bob!