The CVA

[michael]

By no means do i wish to be a doomonger, but having just read the Hornchurch statement, it reoccured to me that MFC has asked to enter a voluntary CVA and it will be 'sorted out' by the administrators over the next 2 months.

 

Now i think the CVA has to be accepted by 75% of the creditors.

 

I hope i am wrong and some clarity would be useful, but i am not aware(and why should i be, but perhaps someone in the know is)that 75% of the creditors have accepted the terms(guess thats also what the administrators sort out).

 

Therefore, as of now we are not by any means out of the woods and liquidation could still be looming.

 

I hope i am entirely wrong, but just do not want all to get carried away only for a major blow to be struck.

 

I do hope its not a case of AFC Margate here we come in the Kent League!

[Guest]

Well Hornchurches cva went pear shape very quickly they only went in a week or so ago. My worry is we have scaled down to nothing and have no assets. Only hope gary lever can get this commercial thing through which i think means the club get a substansial sum of dosh.

 

Think ther is a council meet this week and the decision on our league. Both due on Wednesday ithink. <img src="/forum/images/graemlins/grin.gif" alt="" />

[margateshot]

Geoff, the fact that we have no assets may be our saviour. I am no expert either, but if we go into liquidation the creditors will get nothing as we have nothing to sell off. With us going back home with a new ground, all be it temporary at the moment, we will at least have some sort of an income. With the new complex still a possibility I'm sure if I was owed money i would opt for this option.

[jkmaskell]

Ill admit I was a little concerned at the Hornchurch situation compared to Margates. I will refrain from a depressive tone. All the same, I fear that if the situation is the same as Hornchurch in terms of creditors confidence in the club, they will refuse.

 

Sadly for the council it all hangs on their shoulders. If the council say no to the plans, confidence in having the debt repaid will fall lower and they will be more reluctant to accept the CVA.

 

Ive sat at non-executive director level in the past (not at MFC) and I believe that the creditors will want to play safe, which is very bad for the club. I dont think the creditors will want to take risks. They want their money...bear in mind they have threatened the club with a lawsuit in the past.

 

Im just hoping the creditors can hold on.

[David Holden]

A lot will depend on how much you owe HM Revenue & Customs.

 

In the days when they were preferential creditors they were quite happy to accept CVAs knowing that they were safe. Now that they have to accept the same as everybody else, they are starting to throw playthings out of the pram and beginning to vote against.

[Guest]

No expert but this is a COMPANY VA not a CREDITORS VA perhaps someone can explain the difference.

[jkmaskell]

I think its the same thing.

 

Look at http://clear-your-debt.co.uk/cva.htm

 

Explains what a CVA is

[Guest]

There is somthing else to consider who is going to pay the administrors fees, i dont think they come in for nothing.

[Bernard MISA]

When a company goes into administration and alongside that there is a CVA at sometime in the future there has to be a creditors meeting to vote on whether or not the CVA is viable. With regard to monies owed the creditors would only receive a greater sum, spead over a period of time, through the CVA than if the company was liquidated. Even so, it is fact that the creditors hardly ever recoup all monies owed.

[Uncle Urchin]

our CVA proposal was complicated by George Borgs winding up petition which he refused to withdraw....probably hoping that it would be suffient enough of a threat to induce the club into paying....we could not and would not make him a preferential creditor....

 

there are only two ways out of administration....a CVA or a liquidation....

 

we couldn't go into administration and then propose the CVA (which would have probably satisfied the revenue) because of Borgs petition to wind the club up.

 

so we had little choice but to go into liquidation....or risk not playing football at any level next year which would have killed the club off for certain...

 

as I understand matters you do not have the problem of a winding up petition so perhaps your CVA will get voted through although the Revenue are starting to bite over these matters...

 

either way we all wish you the best of luck and hope you get your CVA voted for......

 

keep the faith..keep cool.... <img src="/forum/images/graemlins/cool.gif" alt="" />

[Cookie]

Good luck to you Urchins too!

[Guest]

Thats the big concern...its up to the creditors. If they dont have a belief that it will pay to agree, the club will be forced to be liquidated.

 

Given that the plans for Hartsdown Park have been put back again (I wonder what the reason is this time?) I dont think it will make the situation anymore hopeful.