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Events at Exeter and Darlington could help Bulls
Events surrounding both Exeter and Darlington could help lead to acceptance of Hereford United's latest offer to clear its CVA.
Exeter have been told that the Inland Revenue have dropped their case against the club which, in effect, will allow the Grecians CVA to stand. (more details - see yesterday's item)
The taxman - owed £365,718 by the cash-strapped Grecians - was left reeling after the club entered into a CVA, slashing its debts by 90 per cent.
While the Revenue had long been regarded as a preferential creditor - receiving full payment for money owed - the Enterprise Act removed that privilege, meaning they were entitled to just £36,571 from Exeter City.
And it looks as though Darlington may have sorted their problems, unless a legal challenge from a few creditors takes place.
In this mornings Independent, David Conn looks at the Darlington affair in depth. It is a very long article but gives a facsinating insight into the goings-on at the club.
In summary, former owner, George Reynolds, was forced into bankrupcy by money-lenders Sterling Consortium after Reynolds ran out of money. He had planned to spend £20 million on the new stadium but borrowed at least £2m from Sterling. When Darlington couldn't pay its bills, Sterling stepped in and now have control.
The CVA went through on Tuesday, with a couple of creditors voting against, along with the Inland Revenue, which will be distinctly unhappy at seeing a £461,000 bill unpaid by yet another defaulting football club.
Given the news that the Revenue are to receive next to nothing from Exeter and Darlington, Hereford United will be hoping that their latest offer to settle their CVA stands an even better chance of being accepted.