Dunfermline board could buy time by going into voluntary administration

That order has not yet been sanctioned, although notice is expected to be posted in the Edinburgh Gazette on Tuesday, which would then leave Dunfermline with eight days in which to raise £134,000 to pay the outstanding tax bill. The club's directors have been seeking investment, to no avail, and negotiations with The Pars Community, a collective of supporters who wish to buy the club, broke down yesterday.

TPC had set a deadline of 10am for their offer to be accepted by Gavin Masterton, Dunfermline's majority shareholder, but a deal could not be struck. TPC could, however, table an offer to the administrator, if appointed, to buy the club. They may consider this more likely to succeed, since distrust of Masterton runs deep. He is currently in Switzerland, having grown alarmed at the anger directed towards him and his family by some supporters in recent weeks.

However, there are potential complications to the directors' plan. An administrator can be appointed before the winding up order is served, but after that the court would need to be persuaded that administration is a better outcome for all concerned. HMRC would also have to agree to withdraw their petition. Once in administration, there is a moratorium on all the club's debts, and so breathing space for an offer to be made that is acceptable to the creditors.

An administrator would need to be certain that there is enough working capital to fund the business to the end of the season, and Dunfermline have serious cashflow problems. Only a little more than 60% of the players' wages were paid last month, and the March salary has yet to be paid. Funding can be provided by external sources during administration but that is done with no guarantee that the club will emerge from the process. As well as Masterton being the majority shareholder, he owns East End Park, Ltd, which owns the stadium and is heavily in debt to Lloyds Bank. Dunfermline owe £8.4m, much of it to directors, with £450,000 owing to business creditors. Events are likely to move swiftly next week, as attempts are made to try to save the club. There was only acrimony yesterday, though, as the two sides blamed each other for the breakdown in negotiations. TPC say they have raised £250,000, and blamed Masterton, who owns 94% of the club, for the failure to reach an agreement. In turn, the club chairman John Yorkston accused TPC of time-wasting and not being serious buyers. Yet members of the group have invested around £1m in the club in the last year alone.

"We had an agreement on Wednesday, then they reverted back to the old proposal - well aware that would derail the talks," Yorkston said. "Gavin called their bluff by agreeing to what they were after. It just shows what we thought all along, that they had no intention of dealing with us. They have just been nuisance value, mouthing off and there has never been any substance behind it.

"We had doubts regarding whether the group was in possession of the funds they claimed and we asked them to prove it earlier this week and they did not. We were certainly not putting all our eggs in their basket. We have had reservations about them from the start."

Brinksmanship was inevitable and there is an element of posturing in Yorkston's words. TPC, who plan a fan-ownership model, have stepped back but are prepared to buy the club out of liquidation. A similar outcome is possible if administration happens, but they also need to raise the funds to buy East End Park.

"TPC has worked tirelessly over many months and is extremely upset at the outcome," the group said in a statement. "It is extremely difficult to make a deliverable proposal to purchase a company which is showing signs of corporate distress without first being allowed access to up-to-date and accurate financial information. Before a transaction can be concluded, it is necessary to carry out a proper due diligence process to check the facts. There may be a can of worms waiting for the new owners."