There is, at least, now clarity for Dunfermline.
The administration of their parent company, Dunfermline Athletic Football Club Ltd, will be fraught, and the fans groups who intend to band together to try to save their club face several obstacles, but they can now push on with their plans. That in itself is a form of progress.
Bryan Jackson was yesterday appointed interim administrator, and there is no better insolvency practitioner in Scotland for dealing with the quirks that are found in the finances and factionalism of football. He will be assisted by Robert Barclay, his PKF colleague, who Her Majesty's Revenue and Customs wanted to appoint as liquidator. HMRC petitioned the Court of Session to that effect, after Dunfermline failed to heed a winding up order and pay a £134,000 tax bill. They did not contest Jackson's appointment, although some sources believe the tax man is adopting a hard and unforgiving approach. Jackson believes that Lord Hodge only made an interim appointment due to a technicality, although other sources wonder if he was not fully convinced that the administration process is viable.
Fans and local businesses have provided around £100,000, and Jackson will begin the cost cutting today, but how will a successful Company Voluntary Arrangement be achieved? That requires 75% of the creditors – owed around £9m in total – to agree to accept a fraction of what they are owed.
Dunfermline's future lies in the hands of their fans. The club's only assets are the brand, the Scottish Football Association membership, the Scottish Football League share and the players' contracts. Unlike Rangers last year, there is not a significantly profitable business to be resurrected and fans groups will be the only interested parties. Reference was made to Lord Hodge of a consortium that wants to buy Gavin Masterton's shareholding, and Herald Sport understands this refers to a coalition of fans groups. Meetings will be held to agree on strategy and financing a bid as people try to unite to save the club.
There are complications, though. Has Masterton signed control over to Jackson? If not, he can refuse to deal with any potential buyer and vote against a CVA. Many around the situation refuse to trust him. Masterton also still owns East End Park Ltd, which owns the stadium and a profitable events business.
Herald Sport understands EEP Ltd – which owes £12m to Lloyds Bank – will go into administration as a consequence of DAFCL's fate, and that a different administrator will be appointed. So both the club and the ground will be available to the highest bidder, as long as CVAs are possible. The Pars Community, who made an offer to Masterton earlier this month, planned to put the stadium into the control of a charitable trust, so the community could use it alongside the club.
Some believe Masterton will attempt to buy the stadium back but he would need to raise funds, and has several significant debts looming, along with the failure of his Charlestown House group.
So there is hope for the fans, but they are required to rally, lean on the knowledge and experience of financial experts in their ranks and raise the money to take control of their club, stadium and it's future.
A CVA proposal may not be necessary before Lord Hodge holds a hearing at the Court of Session in April 11, but there will need to be indications a rescue bid is viable. "I believe we can resolve the issues Dunfermline faces," Jackson said. "But the club will need as much support as possible, as soon as possible, if it is to stay in existence."
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