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Creditors reject CVA proposal
HU-FC.co.uk understands that recent attempts by the directors of Hereford United to close the CVA have failed.
It is understood that the club offered another 5p in the pound, in addition to the 40p in the pound originally paid, to unsecured creditors . This offer was turned down by the largest creditors.
Hereford United and their partners want to clear the CVA to allow the club a little more freedom over their own finances, as the current arrangement has strict parameters.
Most of this information has come from the latest report of the Supervisor of the CVA, who states he understands that the company and its joint venture partners continue to pursue the issue of the development of Edgar Street. The success of the Arrangement, and any further payments to the creditors, are dependent upon the success or otherwise of the joint venture.
The Supervisor was approached by the club's directors who asked him to put a proposal to unsecured creditors whereby they would receive a full and final offer of 5p in the pound to settle their claims. The supervisor's staff contacted the largest creditors who indicated their rejection of this proposal.
The costs of the supervision in the last twelve months have come to £1736.65 for 24.65 hours of work, equating to £70.45 per hour.
For more details on the CVA, see our article by clicking here.