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Next Game: Darlington Away In The League On Saturday 23rd November At 3.00pm

Monday, February 03, 2014

Frozen Accounts Delays Wage Payment


The Bulls are expected to start paying some of January's wage bill once the bank accounts at the club are unfrozen.

The freezing of a company's bank accounts is a common occurrence when winding-up proceedings have been initiated, with the banks potentially liable under insolvency law if they allow funds to leave the business ahead of closure.

While banks should unfreeze accounts on dismissal of proceedings, usually at the point of the official notice of dismissal being issued, they have a track record of being slow to lift the blocks to protect their own interests.

The speed of the unfreezing may also be affected by other factors, and the club's admittance that it has other tax debts mounting will likely make the bank nervous that another winding-up petition is imminent.