Crystal Palace Latest

Following on from yesterday's article:-

Finance7 understands that the debt owed to HMRC equates to approximately 5% of the total club debt.  Exact figures cannot be provided until Creditors submit a Proof of Debt form to the Administrators.

On the face of it this would suggest that HMRC will hold little sway when it comes to an eventual vote on a CVA proposal.  However, their share of the vote is likely to be far higher than the aforementioned 5% because some of the reported £30 million relates to football related debts and they will be paid in full under Football League rules and will therefore not be part of the vote.  Furthermore, it is usually the case that certain Creditors will simply not bother to vote, this will again increase the weight of the HMRC vote.

In addition, other Creditors could also vote against any CVA proposal.

The Administrators will be hoping that there are many interested parties resulting in a bidding war.  The more money that is received, the higher the dividend to Creditors and the more likely they will be to accept the CVA proposal.

Posted at 09:22AM Jan 28, 2010 by Kris Wigfield in Sport Finance  |  Comments[0]