Breaking News Chairman's Statement - OS

[Matt the Shrimp]

Chairman's Statement

Every fan will be aware of the Club's difficulties surrounding HMRC and the planned hearing in the High Court to consider a Winding Up Petition tomorrow.

Yesterday evening the Club was advised that HMRC have changed their position and are now seeking an Administration. As such HMRC are postponing tomorrow's hearing to allow the Administration to be considered on Wednesday, November 4th 2009 - a one week delay.

During the last ten years we have saved the Club from administration twice whilst also investing significant sums in its future.

• The Club's rent on Roots Hall and the Training Ground amounting to £5.5m has also been written off by me as a major shareholder.
• At the time of acquiring Delancey's shares in March 2006 the sum of £6.8m investment was also written off.
• Over the past year a further £1m has been invested by me and other directors (whose loans to the Club have been guaranteed by me) to enable the Club to continue. All this has been brought about by the banking crisis; and
• The cost of the planning and Inquiry (which lost us crucial time) was a further £1.9m.

This is not a viability issue for the financial planning is very sound but we have needed time to overcome the banks' inability to lend since their collapse in the summer of 2008. Prior to this everything was on track and it has taken the year to get back to our advanced position. Therefore HMRC's hostile action is not only unwelcome but also destructive.

We are not looking to escape any debts (indeed we wish to ensure we pay in full) and will be able to, given a further short respite, settle the indebtedness.

Every supporter cares about the Club's future and I care at least the same. Mine and my family's life has been entwined with Southend United Football Club often taking up every wakeful hour and I have been doing my best, and will continue to do so, to make sure that HMRC do not rip this from us.

When I have something further of a material nature to say I will issue a statement but certainly in advance of the weekend.

 

[markw]

this is goodish i guess

 

[North Wales Shrimper]

As I put in my post, the debt to HMRC is near enough £700k. How much does Hi-Tec spend sponsoring Golfers etc.

Surely Frank van Weezel could spare some loose change for a few weeks???

Oh, and the hair is back.

Honest Ron... Because he's worth it.

 

[Maldon Blues]

So, basically we're in administration - minus 10 points.

 

[Interpol Shrimper]

Still not looking good though is it?
If it was a month, fair enough as Sainsburys might then stump up some cash but all it really does it allow us the chance not to go bottom of the league if we beat Gillingham & other results go our way!

 

[Smiffy]

So what does this mean then?

HMRC have now applied for an Administration order instead of trying to wind us up completely and unless we pay up in a week's time, we go into admin and everything that goes with it?

But looking at Ron's statement, he seems adamant that this extra respite, will allow the debt to be paid in full.

So on the face of it, that has to be better news?

 

[EastStandBlue]

So what does this mean then?

The way I see it, we have a week to find £660k or we're in Admin... Let's face it, the HRMC aren't going to buckle to RM's request for a further respite even if we do promise to pay in full.

 

[seany t]

"Therefore HMRC's hostile action is not only unwelcome but also destructive."

Yeah, how dare they want their money back...

 

[Aberdeen Shrimper]

The way I see it, we have a week to find £660k or we're in Admin... Let's face it, the HRMC aren't going to buckle to RM's request for a further respite even if we do promise to pay in full.

Spot on.....

10 points deduction it is then.......if, sorry when it happens next week, lets concentrate on the mammoth task in hand of staying up.

 

[mattytheshrimper]

this doesn't answer any questions at all. polictians answer if you ask me. list of excuses and not addressing the point. goes on and on about how he's given all this money. what are we meant to do bowe down to him or something.

 

[Yorkshire Blue]

When's the date of that Sainsbury's planning decision/appeal?

 

[Cricko]

When's the date of that Sainsbury's planning decision/appeal?

The 20th of November..he obviously IMO wanted to stall things until after that date..it does not look like it is going to happen now...

 

[Smiffy]

When's the date of that Sainsbury's planning decision/appeal?

Not sure, but I bet it is going to be heard before this date, even if it has to be moved forward!...

 

[Smiffy]

The 20th of November..he obviously IMO wanted to stall things until after that date..it does not look like is is going to happen now...

Maybe not. But he does say "We are not looking to escape any debts (Indeed we wish to ensure we pay in full) and WILL BE ABLE TO, given a further short respite, settle the indebtness."

 

[Cricko]

Not sure, but I bet it is going to be heard before this date, even if it has to be moved forward!...

I think the planning committee only sit once a month,they would have to sort it before next week and for us to get some monies in from the Banks/Sainsbury's by then, which I don't think will happen.

 

[BrettieAngell]

This is a tad confusing, he says we can settle the debt but how is one week going to make any difference?

 

[Cricko]

Maybe not. But he does say "We are not looking to escape any debts (Indeed we wish to ensure we pay in full) and WILL BE ABLE TO, given a further short respite, settle the indebtness."

I am not arguing that point at all....Of course we can pay it once we have the monies.The short respite needed I would say is until the planning etc has been granted and monies released to the club.

 

[Yorkshire Blue]

He's saying it is a cashflow problem.

 

[Smiffy]

This is a tad confusing, he says we can settle the debt but how is one week going to make any difference?

Indeed, a crumb of hope there.

RM seems certain that the monies will be in place (However that maybe) to pay the debt in FULL to HMRC. But it doesn't say by next Weds. It just says "given a further short respite"

So does that mean this respite, or another one is needed as Cricko alludes to?

 

[Jam_Man]

this doesn't answer any questions at all. polictians answer if you ask me. list of excuses and not addressing the point. goes on and on about how he's given all this money. what are we meant to do bowe down to him or something.

He is pointing out the personal cost to himself, hardly unreasonable.

People have been asking where the money has gone and he is pointing out he has lost a million in the past year alone.

Not sure what you want him to be saying right now?