Bradford City FC creditors accept rescue package
Creditors of Bradford City Football Club has voted today to accept the Company Voluntary Arrangement proposed by administrators from Kroll Buchler Philips.
The club, has gone into the creditor’s meeting with debts of about £33m and has been temporarily suspended from the Nationwide Football League after being unable to pay off its football ‘super creditors’.
The Football League wants assurances by 8 August that the club will have funding in place to fulfil their fixtures for the new season.
Earlier today, a spokesman from KBP explained the urgency of today’s vote. He told Accountancy Age : ‘Creditors have a choice. If they vote for the proposal, they will get some return and the club will survive.’
But he added that if creditors vote against the proposal, they would be endangering the football club and liquidation may be the only option.
According to the spokesman, the CVA is the best return for creditors. Unsecured creditors will receive 10p for each pound they are owed whilst secured creditors can expect more.
The results of this crucial vote has far-reaching repercussions for many troubled Football League clubs. If the CVA was rejected and Bradford City was relegated, it could have spelt the end for many other troubled League clubs that are stuck in the difficult position of attempting to pay massive debts to football ‘super creditors’ or face liquidation.