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Chelverton in liquidation - how it effects Hereford United
The news that Chelverton Properties Ltd. have gone into liquidation will initially have little impact on the day to day running of Hereford United but in the long term could mean that the debt may be lowered.
Much will depend on who purchases the debt and what their attitude to Hereford United is.
The club owe £1.3 million to Formsole, a company wholly owned by Chelverton. Formsole also hold the leases to Edgar Street stadium, and they sub-lease them to the club. Formsole is an asset of Chelverton, and therefore will be sold by the liquidators to the highest bidder. Formsole's accountants are Andersons, well-known for their association with Enron.
Chelverton's liquidation was published last week in the London Gazette. It is believed that the company had not got "sufficient assets to cover its liabilities". A firm of London liquidators has been provisionally appointed but this can not be confirmed until October 15th when a meeting of the creditors will take place. The liquidators are unlikely to close Hereford United, they will simply dispose of Formsole.
The Richardson Brothers who are involved with both Chelverton and possible redevelopment in the Edgar Street area are thought to have pulled the plug on Cheverton Properties.
Herefordshire Council leader Terry James told HU-FC.co.uk that he is keeping a close eye on the situation but was unable to say more at this stage.
Tonight, Hereford United's liaison committee are set to meet with Simon Morgan, who was Chelverton's director of the Edgar Street site project. Morgan resigned as a director of Formsole last August, so it is unclear what he will be able to tell the committee.