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Club look for CVA settlement
Further information has come to light about the failure of Hereford United's recent attempt to offer unsecured CVA creditors another 5p in the pound as reported by HU-FC.co.uk yesterday.
The two main creditors, Inland Revenue and Customs & Excise, both rejected the proposal and as 75% of the creditors (by value of the amount owed) need to agree to any offer for it to succeed, it was not worthwhile calling a meeting to even discuss the proposal.
As well as the two Government departments it is believed that the Professional Footballers' Association are owed a five figure sum by the club. This could be as a result of a loan to pay players wages before the CVA came into existence in January 1998.
It is also understood that the club directors were uncertain as to whether having a CVA at the club could prevent the Bulls moving up to Division Three and wanted to try and show that the club was doing its best to pay off its creditors. In the event, it now appears that having a CVA will not stop promotion.
Provided finances allow, it now seems likely that the club will go back to the creditors and offer 10p in the pound to try and settle the CVA.