Luton's administration

[divas]

Seems Luton came out of administration without a CVA which was what incurred their infamous 20 point deduction, so possibly there is some way we could survive without paying off the debts albeit at a lower level, but not as low as reforming.

Also apparently Leeds did it

http://www.luton.vitalfootball.co.uk/ar ... sp?a=98046

They opted for an 'exceptional circumstances arrangement`, where the new company pay whatever they decide to all creditors, appease the PFA by paying the players in full, and because all the payments are made prior to the transfer of the company to the new owners, the Football League cannot legally withhold the Golden Share. HMRC are seen to get the same as every other unsecured creditor but the Football League, having their power usurped by the club`s failure to use the CVA route will do the only thing they can to show they still have some power and deduct 15 points.

Obviously rather than deduct 15 points the conference will relegate the club, but this could be the avenue PW is exploring.

[Hilly]

Seems Luton came out of administration without a CVA which was what incurred their infamous 20 point deduction, so possibly there is some way we could survive without paying off the debts albeit at a lower level, but not as low as reforming.

Wasn't that in the Football League though, might be a different set of rules in the conference.

[divas]

Seems Luton came out of administration without a CVA which was what incurred their infamous 20 point deduction, so possibly there is some way we could survive without paying off the debts albeit at a lower level, but not as low as reforming.

Wasn't that in the Football League though, might be a different set of rules in the conference.

My understanding is that it was a legal loophole if you like so nothing that can be done apart from punish the club. In the league they deducted Luton 15 points, the BSP have stated we'd be relegated to the BSN, possibly even out of that if they choose, but it's an option i suppose, we'd still be higher up the pyramid than starting again.

[SuperQuaker]

The Conference would probably relegate us this season AND make us start of -20 pts next season as well if we did that.

[divas]

http://www.ciderspace.co.uk/asp/news/ne ... temId=7014

some more reading here, seems that a CVA will probably have to be attempted and refused to get to this stage though.

[shawry]

If a CVA isnt accepted then surely we get liquidated?

[divas]

If a CVA isnt accepted then surely we get liquidated?

The existing company does, but it's all around the intracacies of transferring the golden share (basically our license to play in the league) to a new company.

[shawry]

If a CVA isnt accepted then surely we get liquidated?

The existing company does, but it's all around the intracacies of transferring the golden share (basically our license to play in the league) to a new company.

So there's still a way to liquidate and get our share transferred so we would stay in the same league?

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[Fibonacci0112358]

If a CVA isnt accepted then surely we get liquidated?

The existing company does, but it's all around the intracacies of transferring the golden share (basically our license to play in the league) to a new company.

So there's still a way to liquidate and get our share transferred so we would stay in the same league?

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Not any more.


These rules were changed after Middlesbrough folded in the good old 80's.


If you are liquidated, you no longer exist.

Therefore, there is no company to transfer shares from.

I'm afraid it is also national law.

Insolvency act 1986. Which actually became law in 1987. So nice tie in with the Boro' scenario!