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Overwhelming backing for rescue

PUBLISHED: 10:27 03 May 2003 | UPDATED: 13:49 03 March 2010

CREDITORS of Ipswich Town Football Club yesterday gave their overwhelming backing to a rescue deal – but it was warned there is still more work to do before the club can come out of administration.

CREDITORS of Ipswich Town Football Club yesterday gave their overwhelming backing to a rescue deal – but it was warned there is still more work to do before the club can come out of administration.

Administrator Nick Dargan, who has been running the club since February, spoke of his delight that the CVA had been accepted.

Although he warned that the club still had to raise vital finance, through a loan note issue and season ticket and debenture sales, before it could finally come out of administration – hopefully by the end of this month.

Under the CVA, the club's secured creditors will receive 100 per cent of what they are owed and preferential creditors, such as the Inland Revenue, will receive a minimum of 50%, rising to up to 100% in the event of promotion.

"There were people who asked why they would only receive 5p in the pound, or only a maximum of 20p," said Mr Dargan. "I have great sympathy with that view but there is a business going forward and we have to make sure we do not get back into the same position again.

"The business plan on which the CVA is based is the best that could be offered while ensuring that the club survives, which is the most important thing."

By achieving the rescue of the existing club, said Mr Dargan, creditors were receiving a higher pay-out than would have been the case had the business and assets been sold to a new club with new investors. This was what happened at Leicester City, where unsecured creditors received nothing.

Mr Dargan insisted that the CVA did provide the "breathing place" required and, even if players had to be sold, the club would still be able to pursue a strategy for the playing side rather than having to let players go on a "fire sale" basis.


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