Dunfermline Athletic fans moved a step closer to owning their club when Pars United were named as the preferred bidders for Dunfermline Athletic Football Club Limited and East End Park Limited, the company that owns the stadium.
Their offers were accepted by the respective administrators, BDO and KPMG, ahead of an anonymous consortium.
BDO will call a creditors' meeting within the next three weeks, at which the holders of 75% of the DAFCL debt need to vote in favour of a Company Voluntary Arrangement. The money raised by Pars United to fund their offer for the company that owns the club will be used to provide creditors with a percentage of the money that they are owed, with the rest having to be written off. The alternative is the assets of the business being broken up and sold separately.
"It cannot be understated what a monumental effort undertaken to get to this stage," said Bob Garmory of Pars United. "Financial backing has been relentless since we were placed in administration; in the first instance to ensure that the club didn't fall immediately into liquidation, then to provide vital income to ensure that the club continued to trade and complete last season and, now, continuing to raise funds to ensure that if we make it over the line and become owners of the club it is in the strongest possible financial position.
"We are confident that, now that there is greater clarity about the future ownership of club and ground, supporters will step forward in ever greater numbers. It is crucial further capital is raised to 'Buy the Pars' and to provide the level of working capital required to ensure the club's continued survival. We also need to give Jim Jefferies funds to strengthen the squad when we are able to do so, without prejudicing our need for adequate working capital."
The creditors' meeting was initially scheduled for Friday, but is expected to be postponed until the following week. Most of the creditors are likely to be favourable towards the CVA, since many have ongoing business relationships with the club. Gavin Masterton, the former owner, is also among the creditors, having invested in the club, so will have an influence in the decision on its future.
"I am glad that we are now able to announce a preferred bidder," said Bryan Jackson of BDO. "This means we can now move the process forward with Pars United, who have worked hard over the last few weeks and are now in the driving seat. We will work closely with them as we present their bid to the creditors and, hopefully, win their backing to push for a CVA within the next few weeks."
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