Power Court Case Postponed

[Samdy Gray]

A FRUSTRATED Andrew Fitton admits "the only winners will be the lawyers" as Town's murky financial past looks set to linger into 2009.

A High Court battle between former investors' Bill Power and Phil Emmell and previous owners the Wills family over £1.12 million was set to start today but an 11th hour adjournment sees the case now not expected to be heard until January next year.

A High Court date has been brewing ever since Power and Emmell claimed they loaned the sum to Swindon Town Football Club Holdings Limited, against the holding company's assertion it was part of a share issue.

Now though, with the holding company placed in administration, the heat has been turned directly onto the club's present regime to meet any supposed debts.

With legal debts expected to top over £500,000, Fitton knows Town could eventually be facing almost £2million debts - although the chairman has again assured fans they are partially indemnified by the Wills family against any potential costs.

It would take time and money to claim any costs back though and, with a new six-month delay, Fitton admits it is a complication the club could well do without.

He said: "I don't have any hopes of what will happen but the most unfortunate thing is it has nothing to do with the football club but we still have to deal with it.

"The whole legal process does no-one any good, not the Wills family, not Bill Power and Phil Emmell and certainly not ourselves.

"The only winners will be the lawyers. If the club were to lose, we would have to pay out any costs and then look to get that back from the Wills family. But the process just drags on.

"I am hopeful we would get that money back but I am frustrated by the time and effort it has taken that could, and should, have been spent on building the squad."

Power revealed the late adjournment came about due to the illness of his side's barrister's mother but revealed his hope the increasingly complicated legal battle would not ruin his relationship with the club.

He said: "The whole thing is very regrettable.

"An illness to someone's family puts things into perspective a little bit but it is frustrating it drags on.

"All I would say is I continue to get on very well with any Town fans I speak to and I hope when Swindon play QPR in the league cup next month I can come to the game as Mr Fitton's guest.

"He has been fine with us throughout and if I was welcome at the game I would turn up in a red and white scarf. We don't want to hurt Swindon Town."

Fitton though, added: "I think the club cannot help but suffer from all this.

"I was away on holiday all last week and I still spent hours on the phone because of this, instead of talking about football."

[suttonred]

One worrying sentence is the "partial indemnity"  I always thought AF had that covered, but that doesn't now appear to be the case.

[pauld]

One worrying sentence is the "partial indemnity"  I always thought AF had that covered, but that doesn't now appear to be the case.

That isn't what is says in the club accounts published in June which obviously refers to this as a potential liability but makes it clear that the case is not included as a future liability precisely because of an indemnity "in respect of any liabilities that crystallise in respect of these actions" (my emphasis). I'd say what Fitton puts in the accounts is likely to be a little more accurate than what's re-interpreted in the Adver.

[Batch]

Bit disappointed in the article to be honest. Though Paul D has obviously corrected the extent of the liabilities to the club/Fitton. 

It's a shame Fitton as to deal with the old regimes mess as yes, it does not benefit the club. But I don't hold any malice towards Power trying to get his money back.

[pauld]

Bit disappointed in the article to be honest.

To be fair, the Adver are just reporting what's happened. It's a legitimate news story, likely to be of interest to Town fans, it's not like they're just stirring something out of nothing

[Batch]

I meant the quotes from Mr Fitton. Not sure they are helpful as they link us back to the bad old days.  Maybe it's me but it seemed to hint he thinks Power hurting the club.  But if he was asked a question I guess he had to give his honest opinion.

I probably just got out of bed the wrong side this morning.

[pauld]

I meant the quotes from Mr Fitton. Not sure they are helpful as they link us back to the bad old days.  Maybe it's me but it seemed to hint he thinks Power hurting the club.  But if he was asked a question I guess he had to give his honest opinion.

I probably just got out of bed the wrong side this morning.

Looks like I did as well cos I completely misread what you meant. I don't think he's having a go at Bill tbh, just saying the whole thing is a pain in the arse he could do without. Which I'm sure it is

[sonic youth]

power out!


i've always wanted to say that

[The Grim Reaper]

Maybe Fitton can invite The Will's and Power as guests to the QPR game, feed them on cheap Tesco plonk then get them to reach an out of court settlement.

[Dazzza]

Bit of a silly question but why would the Wills collapse Swindon Town Football Club Holdings Limited and force Power to look at the football club for answers regarding his money.

As a result the club or has to answer the charges but should Power win doesn’t the clause simply present the bill back at the feet of the Will’s family and let the other directors/shareholders of the holding company off the hook?

[Simon Pieman]

Bit of a silly question but why would the Wills collapse Swindon Town Football Club Holdings Limited and force Power to look at the football club for answers regarding his money.

As a result the club or has to answer the charges but should Power win doesn’t the clause simply present the bill back at the feet of the Will’s family and let the other directors/shareholders of the holding company off the hook?

I assume it's because the shares in the football club were purchased from the Holding Company. With the Holding Co. racked up its own debts and no income or assets to speak of, it's been wound up.

[Phil_S]

Bit of a silly question but why would the Wills collapse Swindon Town Football Club Holdings Limited and force Power to look at the football club for answers regarding his money.

As a result the club or has to answer the charges but should Power win doesn’t the clause simply present the bill back at the feet of the Will’s family and let the other directors/shareholders of the holding company off the hook?

The way I see it so that they could take his money & give nothing in return. He gives 1.2 mill to pay off CVA etc. They take money & spend it (what ever it was it wasn't used to pay the CVA). They say the money is for shares in the holding Co. They then sell the holding Comapnies only asset (with out reference to said shareholder) the football club, & put it where Mikey D puts most companies.
(Admin or liquidation). So they end up with the 1.2 mill or whatever was bought with it. Bill has nothing.
Bill & Phil say that the money was a loan to the football club. It was money that was desparately & urgently needed if you remember, & in my mind I can I can hear Miket D saying. We're all friends here so let us have the money & we'll sort the paperwork out later.  (In the same way that the snake in the jungle book used to speak)
We don't know if it's legal or not yet, but in my opinion (for what it's worth) is it's fraud, misappropriation or whatever. Surely some law has been broken.

[Dazzza]

Cheers chaps.

So in theory had the holding company not been collapsed would it have been the focus for the trial?   Or as the loan went directly to the club any accountability would have still been placed firmly at our doorstep?

I’d have thought if the holding company was to be held accountable and Power won his case having no assets to repay the loan would be a bonus. 

That said I think the flip side is directors can still be held personally accountable for the guarantee of loans, which would explain why the Greek would want the holding company collapsed sharpish.

It will be interesting to see what mess comes out in the wash with this Court Case.  I suspect a hell of a lot of dirty laundry is going to end up getting aired.

[Batch]

I think the writ from Power was raised against the holding company AND the club.

I presume this was to stop the folding of the holding company leaving Power powerless to regain his money, though this is my personal view rather than fact!

[pauld]

I assume it's because the shares in the football club were purchased from the Holding Company. With the Holding Co. racked up its own debts and no income or assets to speak of, it's been wound up.

I don't believe it has been wound up as such. It's still showing on Companies House as being in administration, which it has been since March. The Administrator being, of course, one A Andronikou.

The assets were listed as being shares in the FC and a loan to either the FC or the Shaw Park Jt Venture, can't recall which OTTOMH. Regular viewers will recall that it was the alleged overstatement of the value of these assets in the Old Holding Company accounts (the co directors tried to claim they were worth something) that led to the auditors pre-pending those accounts with an adverse opinion to the effect that they were not to be relied upon as giving an accurate picture of the company's financial position.