Post by Dale on Mar 25, 2004 15:38:33 GMT 1
Future looking bleak as no agreement is reached over rescue deal
The future of Darlington Football Club is looking increasingly desperate after hours of negotiations to agree a rescue deal have ended in stalemate.
Administrators Wilson Field admitted that the frustrating impasse meant the Quakers could be on the verge of closure after 121 years.
A day of talks involving former Chairman George Reynolds and would-be owner the Sterling Consortium ended on Wednesday night with no agreement being reached.
It led supporters to call on all parties to thrash out a settlement to save the club.
Sterling, the finance group that holds a mortgage on the Reynolds Arena, exchanged contracts for the sale of the business and assets of the club last Friday.
But the sale is subject to creditors' approval - and Mr Reynolds has insisted that he will reject a Sterling-backed company voluntary arrangement (CVA).
The Football League is also standing firmly behind its policy that all creditors must be satisfied with any deal to bring a club out of administration.
Joint administrator David Field said last night: "Everybody has their position, and if nobody moves from those positions, there is nothing else we can do.
"Liquidation is looking likely. There are still opportunities to resolve it, but we're trading at a loss and we can't carry on.
"If we get to the stage where we can't justify carrying on, then we will close it."
The Sterling deal would have offered creditors a small fraction of what they are owed and, if accepted, would have ensured the club's short-term survival.
But Mr Reynolds says the business has been undervalued. He said he would rather see the club fold than accept the terms of Sterling's proposal.
Mr Field said: "We have held further discussions with the purchaser and Mr Reynolds, and we will continue to have discussions."
The Football League has confirmed that it will not alter its insolvency policy for clubs in administration for Darlington's sake - to the fury of fans.
www.darlington-fc.net
The future of Darlington Football Club is looking increasingly desperate after hours of negotiations to agree a rescue deal have ended in stalemate.
Administrators Wilson Field admitted that the frustrating impasse meant the Quakers could be on the verge of closure after 121 years.
A day of talks involving former Chairman George Reynolds and would-be owner the Sterling Consortium ended on Wednesday night with no agreement being reached.
It led supporters to call on all parties to thrash out a settlement to save the club.
Sterling, the finance group that holds a mortgage on the Reynolds Arena, exchanged contracts for the sale of the business and assets of the club last Friday.
But the sale is subject to creditors' approval - and Mr Reynolds has insisted that he will reject a Sterling-backed company voluntary arrangement (CVA).
The Football League is also standing firmly behind its policy that all creditors must be satisfied with any deal to bring a club out of administration.
Joint administrator David Field said last night: "Everybody has their position, and if nobody moves from those positions, there is nothing else we can do.
"Liquidation is looking likely. There are still opportunities to resolve it, but we're trading at a loss and we can't carry on.
"If we get to the stage where we can't justify carrying on, then we will close it."
The Sterling deal would have offered creditors a small fraction of what they are owed and, if accepted, would have ensured the club's short-term survival.
But Mr Reynolds says the business has been undervalued. He said he would rather see the club fold than accept the terms of Sterling's proposal.
Mr Field said: "We have held further discussions with the purchaser and Mr Reynolds, and we will continue to have discussions."
The Football League has confirmed that it will not alter its insolvency policy for clubs in administration for Darlington's sake - to the fury of fans.
www.darlington-fc.net