Recent developments at CPFC: a synopsis
posted by Chris Waters on Wednesday 19th of May 2010 12:44:06 PM
A wealth of information has come out over the last couple of days from the Creditors Meeting in London on the 17th May and the fans Q&A session with Brendan Guilfoyle on 18th May. Events are moving so quickly that the situation significantly changed even between the two meetings. The following is a summary of the situation as it stands now but that could change rapidly:
· CPFC 2010's bid for the club has been accepted by BG.
· There was no other bidder for the club, and while CPFC 2010 (1) were reluctant bidders and would have been happy to step aside if someone else had come in, no one did.
· They have agreed a purchase price for Selhurst Park (2) with the seller and have also come to an agreement with Agilo (3) with regard to their debt.
· It seems that the only outstanding matter is getting a CVA (4) agreed at a creditors meeting.
· No-one is funding the club at the moment CPFC 2010 are not prepared to fund it until the CVA is agreed as the current indications are that Simon Jordan will vote against the CVA. It would seem that if he did then his vote and the votes of others would be enough to stop it going through.
· BG has indicated that he will need to sell players if that situation remains the case for any length of time in order to pay the wages for the end of May.
· The CVA meeting will be as soon as possible. As 14 days notice has to be given legally the current likelihood is that it will be on 3rd June.
· If a CVA is not agreed then the Club can exit administration outside a CVA by a sale of the Clubs assets to a new Company. However in that case the Football League will impose a sporting sanction on the Club for not exiting via a CVA (5).
· It is not clear if CPFC 2010 would however be willing to continue with a purchase if the Football League imposed a large sporting sanction
Notes
1) The exact make up of CPFC 2010 is still not known
2) Selhurst Park is effectively owned by Lloyds who have appointed PWC as administrators. The Landlord was part of the Rock consortium of companies owned by Paul Kemsley
3) Agilo have to be satisfied outside the CVA as their debt is secured on the clubs assets
4) A CVA is a legal way of settling debts which is considered to be fair to creditors in all the circumstances. 75% of the creditors (by value) have to vote in favour as well as 50% of the unconnected creditors for it to be passed.
5) The Football League has discretion to impose a sporting sanction on any club exiting administration other than by a CVA. Previous sanctions have been points deductions of between 15 and 20 points depending on the number of times a club has been in administration. Accordign to BG Palace have been in administration 3 times (including this one) as in addition to 1999/00 the club went through an arranged administration in 1986 when Ron Noades transferred the assets from Crystal Palace Football and Athletic Club Ltd to Crystal Palace Football Club (1986) Ltd. That penalty could be imposed for whichever season the Football League was inclined. They could however impose a further or different sanction if they wished.
CPST continue to be actively involved in engaging with CPFC 2010, the club, and the administrator, and will be closely monitoring events as they unfold.
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