Alex Andronikou of Hacker Young, who is supervising the CVA, told AccountancyAge.com: ‘They are currently in breach of the CVA. The club’s board is look to put a variation in the CVA to get back in line.’
He added: ‘There will be a creditors’ meeting in the next few weeks and at that point it looks like the creditors will accept the CVA variation.’
Andronikou explained that Swindon went into administration last year after the club could not finance its on-pitch financial requirements.
Andronikou said: ‘This is not an unusual circumstance for a football club, its on-pitch sales do not equate to its overhead. It needs to sell players to fill the gap or get a fuel injection, and unfortunately, Swindon could not do that.’
He said that last year its finances deteriorated and its investors could not provide more cash. At the time, new investors were found and they injected £2m into the club, which was used for the club to go into CVA. But last season, Swindon’s on-pitch revenues were outstripped by its overhead base and it again lost money.
Yesterday, the Swindon Evening Advertiser reported that the football club had not paid second instalments of payments to the Inland Revenue and Customs & Excise. Andronikou told the paper that if the club didn’t take care of the situation there would be ‘no retrieving the situation’.
Swindon Town’s chief executive Peter Rowe told the local paper: ‘The problem has been that they’re [the directors] involved with so many other businesses that they haven’t been able to keep their eye on the ball at the County Ground.’
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