Creditors of Dunfermline Athletic Football Club plc have voted in favour of the administrators pursuing a Company Voluntary Arrangement that could lead to the company that operates the club exit its insolvency event before next season.
A vote was held yesterday, with creditors holding more than 50% of the company's total debt agreeing to allow Bryan Jackson of the accountancy firm BDO to try to deliver an acceptable CVA offer.
A further creditors meeting will now be held on July 12, at which those holding 75% of DAFC plc's debt would need to vote in favour of the CVA, effectively involving them writing off a significant portion of the money that they are owed. In the meantime, Jackson will negotiate with the two parties that have made bids with the club to try to reach a deal that will fund a reasonable CVA offer.
Pars United, a coalition of fans groups, and a second party who have included anonymity as a condition of its bid, tabled offers for DAFC plc on Tuesday. Both linked their bids to offers for East End Park Ltd, the company that owns the stadium and which is also in administration. The offers fell short in terms of value, clauses and the terms they included, so Jackson and Blair Nimmo of KPMG, who are in charge of EEP Ltd, will meet the interested parties to try to reach agreement. The intention is for a preferred bidder to be named in time for the CVA vote on July 12.
"It is helpful that we have been working closely with Bryan Jackson and Bob Barclay of BDO, as well as Blair Nimmo and Gary Fraser of KPMG," said Bob Garmory of Pars United. "We put in £100,000 at short notice in early April to stop the club being liquidated and we now intend to see it all the way through to leaving administration as soon as possible.
"Pars United enjoys widespread support and we thank everyone who has worked in any way to make this vision come true. We have experience and knowledge in our team and are backed by one of Scotland's leading legal firms, DWF Biggart Baillie. Our aim is simple. It is to restore the club we love, and put it onto a sound footing for the future."
For the CVA to be agreed, several creditors must vote in favour, but KPMG carry the largest vote since they control EEP Ltd, which is owed around £5.8m of DAFC plc's £8.5m debt. Both administrators want to sell the two companies as a package, which means Lloyds Bank, who are the major creditors of EEP Ltd, will have a significant say in the outcome. The bank have to accept the highest offer, although their preference is for community ownership schemes.
Ayr United are the latest club to express an interest in such schemes, with chairman Lachlan Cameron confirming that a working group has been created to investigate such.
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