Breaking News Chairman's Statement - OS

[dloman]

Didn't think HMRC could be a preferential creditor anymore or at least on claims after 2003? Unless of course they have a debenture in place which would allow them to appoint an administrator.

 

[Yorkshire Blue]

I might be being thick here, but is appointing a receiver the same as going into administration. I'm guessing it is....

Your not being thick at all, I was being very lax with my terminology, and should have used administration.

 

[Matt the Shrimp]

Didn't think HMRC could be a preferential creditor anymore or at least on claims after 2003? Unless of course they have a debenture in place which would allow them to appoint an administrator.

Is that right? Oops - shows how out of date I am. I thought that they automatically got preferential status...?

Matt

 

[Napster]

Is that right? Oops - shows how out of date I am. I thought that they automatically got preferential status...?

Matt

The right of the Crown as a preferential creditor was removed by the Enterprise Act 2002.

 

[weststander]

Is that right? Oops - shows how out of date I am. I thought that they automatically got preferential status...?

Matt

Because they are no longer a preferential creditor is the reason why the HMRC and the football league agreed to the embargo for clubs that are in debt to them. I
t was to make sure that they were paid in full in the event of clubs coming out of administration without the HMRC agreement which is what i believe Leeds did.

 

[Jay_Shrimper]

The situation we find ourselves in is down to Martin - whether you have sympathy for him and the reasons why it's come to this - it's his mis-management that leads us to where we are now. He's the man in charge and so the buck must stop with him.
After being assured by Ron that it's nothing to worry about and the debt will be settled, I find it very hard to have any confidence in the man whatsoever.

Ron owns the club, yes. Ron's not been able to find the money to pay it, YET.

End of the day, Ron's personal company deals with property and the recession has screwed him over. His personal company is losing out, and I read somewhere that he's taken a loss of £350k last year at the company. Also, the football club has been running at loss for the last few years so Ron's pocket has taken a massive blow the last couple of years.

Yes, it's Ron's fault we've managed to find ourselves in this position; but he couldn't help the economic downturn. If the economy was the way it was 2 years ago; we wouldn't be in this position. The stadium would be well underway and Ron would be everybody's best friend.

Until the day comes when Ron can no longer do anything to help the club, until what has REALLY happened comes to light or until a multi-millionaire buys the club, then there's not really a lot we can do apart from speculate on what we have heard.

 

[Yorkshire Blue]

Why does the revenue care about our long-term ability to trade? That's a matter for the club's directors, not for them.

They only care in so far as it gives them a better opportunity to get their money back.

An administrator is not appointed simply to pay money out to HMRC. He pays to the revenue first, as a preferential creditor, but only once all assets and liabilities have been ascertained. The revenue would be in no position to require the administrator to ring-fence monies received in a few weeks' time, after the administrator had been appointed.

The Administrator surely protects their position better than allowing the company to continue unhindered.

The money might become due in a week (although it is unlikely to be due immediately) but the planning decision may be deferred again or challenged which could add further delays.

Moreover, the entry into insolvency of SUFC may be a termination event under any existing deal between Sainos and SUFC, allowing the former to renegotiate on substantially preferable terms, thereby further reducing potential income to the administrator.

This would be bad news.

 

[Jedi Shrimper]

What is is worth for me to go down the hall to the next open plan office, walk to the bottom and batter the **** out of Carrow Road numpty????

Tell him you're conducting an experiment. To see if canaries can fly.

 

[Matt the Shrimp]

The right of the Crown as a preferential creditor was removed by the Enterprise Act 2002.

Ah, well there you go. Luckily insolvency is not my area of expertise!

 

[Napster]

Ah, well there you go. Luckily insolvency is not my area of expertise!

Mine neither. You will have seen my area of expertise in my last email. :)

 

[Ricey]

Mates just text me saying that he heard on Five Live that we are going into administration tomorrow and getting a 10 point deduction! Has this been mentioned before?

 

[pringlejon]

Mates just text me saying that he heard on Five Live that we are going into administration tomorrow and getting a 10 point deduction! Has this been mentioned before?

i think it just turns into chinese whispers in the media, trying to get on top of the latest news without proper research will always bring presumptions

 

[Winkle]

I am a bit well..............annoyed. On one hand I do feel as a club we have over the last five years enjoyed success on the field with back to promotions and cup runs all with Ron sphutting on about the big dangly carrot of a new ground and financial security. Yes there is a recession and this as fundementally changed one thing and that is that he is unable to borrow any more money to stave off excisting debtors and Know just day to day running of our club is compromised. I do however feel that Ron has to much invested in our club to just walk away with his parent company being one of our biggest debtors and for this reason I have to have faith in the man, who else was ever going to invest in a loss making club. Like Y.B states, we was in financial meltdown well before ron took over so in that respect nothing as changed, its just that he should have be more truthful with the supporters about recent events instead of trying to spin things around and creating an air of confidence when he nows really we are in the brown stuff. If or when it happens a 10 point deduction would be a blow, but I would be confident of still staying up with our excisting squad, however, if our best players get sold to pay H.M.C.R then Im afraid,we are really, really going to struggle.

 

[EastStandBlue]

Mates just text me saying that he heard on Five Live that we are going into administration tomorrow and getting a 10 point deduction! Has this been mentioned before?

Why would we do that? We've been given until next Wednesday to find the money, if we can't we'll then be placed into Administration. Why would we voluntarily accept Admin before the deadline?

Honestly, is common sense a dying trait?

 

[Davros]

am i the only one who sees the irony of HMRC being based on the same street as Southend united?

 

[grassroots]

The really crippling factor is the lack of fluidity in the capital markets and the depreciation of the commercial property market, combined with the lack of progress on the stadium development (thanks to the bureaucracy involved)...[/quote]

We would probably be safely ensconced in our new stadium if RM hadnt kept pushing the boundaries of the development. The Council actively encouraged the move to be financed from the sale of Roots Hall with SOME enabling projects at Fossetts. Having got an agreement, in true developers colours, RM got greedy, expanded the development massively by encroaching into Rochford for a car park and three training pitches, so that a corresponding area of land could be developed in the Southend Borough. 'Bureaucracy' has a duty to keep and eye on such overdevelopement. I have no doubt that RM and Co expected some of this to be knocked back - none of it was and they sit with millions of pounds worth of OK'd developement and one things certain they wont lose out - lets pray that our club doesnt either.

 

[Sean 2]

I could see Barrett and Macca playing for nothing 'till the Sainsbury's money turned up. Same goes for Tilly and Brush removed from the wages for a while. In fact, i'd love a chat with Tilly on his feelings right now. Must be breaking his heart too, same with Brushy.
I see Ron's making another announcement by Friday, i'm not suprised seeing as he doesn't want everybody on his back at the 'Hall during/after the game.
Would still like to know why the last application of the finer Fossetts details got put back again, the silence from Ron was deafening. He knew then that we'd be in serious trouble.
If Ron pulls this off now, it'd be the deal of a lifetime.

Not a fapping chance i'd say. Must be bad for the spinmeister to be desperately wriggling about in a hole that was being dug a long while ago.
Can he save face? No chance in the immediate future.
Can he save the club? Already has done and this stadium will go ahead IF he can take the flak that's coming his way.

So, in summing up i think if Ron can put up with the abuse coming his way we'll be ok, allbeit probably back in L2. The big question is, will he walk?

 

[OldBlueLady]

am i the only one who sees the irony of HMRC being based on the same street as Southend united?

Bloody used to be customers of ours when I was in banking!

 

[class]

am i the only one who sees the irony of HMRC being based on the same street as Southend united?

Is HMRC address **** street too then?

:unsure:

 

[baldyian]

Just found this and thought I would post something that perhaps looks as if there could be a positive at the end of this. Section in blue seems to hold most hope. However, last section in red is bound to get the doom and gloom merchants out!
What are the alternatives to liquidation?

There are 3 possibilities:

• Informal arrangement - the company could consider writing to all its creditors to see if a mutually acceptable agreement can be reached. It is advisable to include a timetable of when payments will be made.
• Company voluntary arrangement (CVA) - this is a formal version of the arrangement described above. The directors would need to apply to the court with the help of an authorised insolvency practitioner, who would supervise the arrangement and pay the creditors in line with the accepted proposals.
• Administration - this is a court procedure that gives the company some breathing space from any action by creditors. A court can grant an administration order to enable the company to:
  
  • survive, in whole or in part, as an ongoing business.
  • organise a voluntary arrangement or compromise with its creditors.
  • get a better realisation of assets than would be possible if the company went into liquidation.
  • The procedure is managed by an administrator, who must be an authorised insolvency practitioner.

Whatever the proceeding, the company is insolvent and will eventually go off the Register of Companies, won’t it?

Only liquidations result in the company being automatically dissolved. It is possible, following the conclusion of a receivership, administration or corporate voluntary arrangement, for a company to remain on the live register and continue trading. What happens to the directors of an insolvent company?

The liquidator, administrative receiver, administrator or Official Receiver has a duty to send the Secretary of State for Business, Enterprise and Regulatory Reform, a report on the conduct of all directors who were in office in the last 3 years of the company's trading. The Secretary of State has to decide whether it is in the public interest to seek a disqualification order against a director. Examples of the most commonly reported conduct are:

• continuing the company's trading when the company was insolvent;
• failing to keep proper accounting records;
• failing to prepare and file accounts or make returns to Companies House; and
• failing to send in returns or pay to the Crown any tax that is due.