Dundee FC secures future with CVA agreement
Tue 8th Feb 2011 | Football Club Administration
Dundee Football Club has secured its future after reaching an agreement with its creditors
The Scottish First Division club had called in administrators last October after it had accumulated debts of £2.3m.
However, 81% of the clubs creditors voted in favour of a creditors’ Voluntary Agreement (CVA) which will see them receive around 6p in every pound owed.
HM Revenue and Customs (HMRC) are owed at least £420,000 in outstanding tax bills, the CVA offer was passed.
It is believed that the offer made by the club to pay off all debts at 6p for every pound was deemed acceptable by 81.6% of their creditors, with the Dark Blues needing at least 75% behind the CVA.
A 75% vote is needed to gain a CVA and only HMRC and sacked management team Gordon Chisholm and Billy Dodds voted against the proposal, meaning that it was passed.
The £150,000 raised by the Dundee FC Supporters’ Society was the only money available to the administrator in compiling the offer, after other pledges of money for the club fell through.
Tayside outfit will now be able to continue under new ownership - headed by Dundee FC Supporters' Society Ltd, who now control 53.7% of the club's shares.
This was the second time in seven years that Dundee called in administrators and it looks to have struck a fatal blow against the Dark Blues.
Although the CVA deal does not mean that Dundee’s troubles are over, it does mean the club have avoided entering into liquidation, which would have been inevitable had it not been agreed.
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