Sale of Southend United to Justin Rees and his consortium

[Jai]

Didn't somebody say that with a Winding Up Order you can't go into administration?

At the moment, it's not a WUO, it's a Winding Up Petition. An order would be given by the judge on the 4th. So not sure if that makes a difference?

 

[Dutch Branch]

Remember the club is fighting off a winding up petition so the chances of going into Administration are long gone. However, something to note is that if the club is wind up it’s going to cause the man monster problems with the insolvency service which would probably end up with him receiving a Directors band 2/5 years which I’m sure wouldn’t be to his liking and would no doubt hinder many of his other operations including raising funds for any future projects of his. So I’d say he would be keen to avoid that trap door.

 

[Jai]

This is what Chat GPT thinks. Of course, the caveat being Chat GPT is not necessarily accurate:

In the United Kingdom, when a business is the subject of a winding-up petition, it means that a creditor is seeking to wind up the company and have its assets liquidated to pay off its debts. This is a serious legal process that can ultimately lead to the company's dissolution. However, there are certain steps a company can take if it wishes to avoid compulsory liquidation and instead pursue a voluntary administration or a Company Voluntary Arrangement (CVA).

1. Voluntary Administration (Administration): A company can enter into voluntary administration under the Insolvency Act 1986. This process is initiated by the company's directors or, in some cases, by a qualifying floating charge holder (a secured creditor). The goal of administration is to rescue the company as a going concern, achieve a better outcome for creditors than liquidation, or realize assets for distribution to secured or preferential creditors.
2. Company Voluntary Arrangement (CVA): A CVA is another option for a company facing financial difficulties. It is a legally binding agreement between the company and its creditors that outlines a plan for repaying the company's debts over a period of time. A CVA can be proposed by the company's directors or an administrator if the company is already in administration.

If a winding-up petition has been presented to the court, the company can still pursue administration or a CVA, but there are important considerations:

• The winding-up petition may be heard in court, and if the court grants a winding-up order, the company may be placed into compulsory liquidation.
• To stay the winding-up proceedings and give the company a chance to propose a CVA or enter administration, the company can apply to the court for an injunction to halt the winding-up process temporarily.
• Creditors and the court will carefully consider whether the proposed administration or CVA is in the best interests of the creditors and the company. If they believe it offers a better outcome than liquidation, they may approve it.

It's important to note that the specifics of each case can vary, and legal advice from a qualified insolvency practitioner or solicitor is essential when a company is facing financial difficulties and is subject to a winding-up petition. These professionals can provide guidance on the appropriate course of action and the legal processes involved.

 

[tommy tucker]

Going into administration would cost the club dear I

 

[Jai]

Going into administration would cost the club dear I

Yes it would, but it's looking increasingly like the only option that keeps the club alive.

 

[tommy tucker]

It would also be costly to the super rat Ron Some how if that's his opinion to wind the club up He could be playing with fire. Some how Anna Firth would strike back at him And possibly the council

 

[in the know]

This is what Chat GPT thinks. Of course, the caveat being Chat GPT is not necessarily accurate:

In the United Kingdom, when a business is the subject of a winding-up petition, it means that a creditor is seeking to wind up the company and have its assets liquidated to pay off its debts. This is a serious legal process that can ultimately lead to the company's dissolution. However, there are certain steps a company can take if it wishes to avoid compulsory liquidation and instead pursue a voluntary administration or a Company Voluntary Arrangement (CVA).

1. Voluntary Administration (Administration): A company can enter into voluntary administration under the Insolvency Act 1986. This process is initiated by the company's directors or, in some cases, by a qualifying floating charge holder (a secured creditor). The goal of administration is to rescue the company as a going concern, achieve a better outcome for creditors than liquidation, or realize assets for distribution to secured or preferential creditors.
2. Company Voluntary Arrangement (CVA): A CVA is another option for a company facing financial difficulties. It is a legally binding agreement between the company and its creditors that outlines a plan for repaying the company's debts over a period of time. A CVA can be proposed by the company's directors or an administrator if the company is already in administration.

If a winding-up petition has been presented to the court, the company can still pursue administration or a CVA, but there are important considerations:

• The winding-up petition may be heard in court, and if the court grants a winding-up order, the company may be placed into compulsory liquidation.
• To stay the winding-up proceedings and give the company a chance to propose a CVA or enter administration, the company can apply to the court for an injunction to halt the winding-up process temporarily.
• Creditors and the court will carefully consider whether the proposed administration or CVA is in the best interests of the creditors and the company. If they believe it offers a better outcome than liquidation, they may approve it.

It's important to note that the specifics of each case can vary, and legal advice from a qualified insolvency practitioner or solicitor is essential when a company is facing financial difficulties and is subject to a winding-up petition. These professionals can provide guidance on the appropriate course of action and the legal processes involved.

based on section 5.... Ron could put us into voluntary admin which I believe is a consideration....then as main creditor get to decide to wind us up. As if he's not wound us up enough already ffs!

 

[Napster]

Going into administration would cost the club dear I

Brian? Should have retired years ago.

 

[Smiffy]

For those of you saying Administration is not an option, then how come even Ron himself has said that the charges against RH are so he "can appoint an administrator" he said those very words on Talksport not a week or two ago. It is clearly an option, but rather a last resort if a deal with the Aussie cannot be done in time.

 

[Dutch Branch]

This is what Chat GPT thinks. Of course, the caveat being Chat GPT is not necessarily accurate:

In the United Kingdom, when a business is the subject of a winding-up petition, it means that a creditor is seeking to wind up the company and have its assets liquidated to pay off its debts. This is a serious legal process that can ultimately lead to the company's dissolution. However, there are certain steps a company can take if it wishes to avoid compulsory liquidation and instead pursue a voluntary administration or a Company Voluntary Arrangement (CVA).

1. Voluntary Administration (Administration): A company can enter into voluntary administration under the Insolvency Act 1986. This process is initiated by the company's directors or, in some cases, by a qualifying floating charge holder (a secured creditor). The goal of administration is to rescue the company as a going concern, achieve a better outcome for creditors than liquidation, or realize assets for distribution to secured or preferential creditors.
2. Company Voluntary Arrangement (CVA): A CVA is another option for a company facing financial difficulties. It is a legally binding agreement between the company and its creditors that outlines a plan for repaying the company's debts over a period of time. A CVA can be proposed by the company's directors or an administrator if the company is already in administration.

If a winding-up petition has been presented to the court, the company can still pursue administration or a CVA, but there are important considerations:

• The winding-up petition may be heard in court, and if the court grants a winding-up order, the company may be placed into compulsory liquidation.
• To stay the winding-up proceedings and give the company a chance to propose a CVA or enter administration, the company can apply to the court for an injunction to halt the winding-up process temporarily.
• Creditors and the court will carefully consider whether the proposed administration or CVA is in the best interests of the creditors and the company. If they believe it offers a better outcome than liquidation, they may approve it.

It's important to note that the specifics of each case can vary, and legal advice from a qualified insolvency practitioner or solicitor is essential when a company is facing financial difficulties and is subject to a winding-up petition. These professionals can provide guidance on the appropriate course of action and the legal processes involved.

I would say that in normal cases there’s always a chance but the ain’t normal he’s been court far to often and no one believes a word he says.

 

[Cricko]

For those of you saying Administration is not an option, then how come even Ron himself has said that the charges against RH are so he "can appoint an administrator" he said those very words on Talksport not a week or two ago.

He did and got flustered over Simon Jordan stating he held all the cards.

 

[Cricko]

The Rat wins in every way, whether we are wound up or not.

 

[Smiffy]

He did and got flustered over Simon Jordan stating he held all the cards.

Here is the very clip.

RM: "I need a debenture to be able to appoint an administrator. That is the reason for it"

https://x.com/blueroomsufc/status/1694706022936678602?s=20

 

[Supershrimper]

To be rid of Ron i'd almost taken administration. If it meant the minute we are put into administration then someone else purchases us and removes Ron then I'd take it all day long. Better to do it now with a fair chunk of the season to go rather than leave it until after Christmas.

Is it clear that the National League will only deduct 10 points. Didn't Leeds have -15 back in 2006?

 

[West Stand]

Read rule 13B1 of the NL rulebook

https://s3.eu-west-1.amazonaws.com/files.pitchero.com/leagues/13676_1691057466.pdf

 

[Smiffy]

Read rule 13B1 of the NL rulebook

https://s3.eu-west-1.amazonaws.com/files.pitchero.com/leagues/13676_1691057466.pdf

13.B.1 In the event of a Club entering an Insolvency Event between the end of the AGM and start of the AGM immediately following thereafter (‘the next AGM’) then it shall automatically be relegated by one Step at the next AGM, unless one of the following requirements has been met, namely: (i) Prior to the next AGM it has Paid in Full all its creditors (including but not limited to Football Creditors); or (ii) Prior to the next AGM it has Paid in Full its Football Creditors and entered a compliant Creditor Compromise. For the purposes of this Rule, a Creditor Compromise shall be considered compliant if it provides for the following: - That all Creditors will be paid in Full; - The first payment under the terms of the Creditor Compromise shall be made within 28 days of the approval of the Creditor Compromise and shall constitute a minimum of 10% of the total sum payable; - The balance shall be paid in equal amounts over the remaining period of the Creditor Compromise; - The period of the Creditor Compromise shall not extend beyond three years from the date of approval. Notwithstanding the above, in the event of a Club being subject to an Insolvency Event at the date of the AGM, then the Club may be subject to such sanction as the Board may determine, (including expulsion from membership of the Competition) unless the Board is satisfied that by no later than 5pm on 31 July (or, if the 31 July falls on a weekend, 5pm on the immediately preceding Business Day) that the Club (or any new entity to which its membership is subsequently transferred under 2.9.2 above) is in a financial position to complete all of its fixtures for the immediate following Playing Season. This sanction shall apply in addition to any Club being relegated pursuant to its playing record in the same period namely that in the event of the Club having already been relegated by one Step it shall be relegated two Steps. This provision is subject to Rule 2.9.1 in respect of Clubs which have transferred their membership pursuant to an Insolvency Event and in that case where there is any conflict between any provision of Clause 14 and Rule 2.9.1 then this Clause 14 shall prevail.

 

[Chrisb]

I think we can make up 10 points no problem, but not 20. We'd effectively be relegated, and would that really be in anyone's interests?

I guess the Club are still hoping for a successful appeal against the previous -10.

 

[West Stand]

For those of you saying Administration is not an option, then how come even Ron himself has said that the charges against RH are so he "can appoint an administrator" he said those very words on Talksport not a week or two ago. It is clearly an option, but rather a last resort if a deal with the Aussie cannot be done in time.

Once an administrator has been appointed there are absolutely no guarantees what will happen from that point on.

Its just as possible that an administrator will say no the company is insolvent and going forward there is absolutely no way that a newco could trade profitably.

 

[Smiffy]

13.A.1 If an Insolvency Event shall occur in relation to any Club that Club shall be deducted 10 (ten) points.

13.A.5 For the avoidance of doubt, where a Club is subject to more than one Insolvency Event (for example Administration followed by a Company Voluntary Arrangement), the Club shall only be deducted one set of 10 points, such deduction to apply with effect from the first Insolvency Event.

 

[jarvisyeh]

For those of you saying Administration is not an option, then how come even Ron himself has said that the charges against RH are so he "can appoint an administrator" he said those very words on Talksport not a week or two ago. It is clearly an option, but rather a last resort if a deal with the Aussie cannot be done in time.

As you say, that information has come from Ron himself and so you will have to forgive those who have decided not to believe a single word of it.