Further to my previous piece on Northampton Town Football Club’s petition for Administration, HMRC’s petition to wind-up the Club has been adjourned as of yesterday (16th November 2015). The Administration petition is due to be heard on 27th November 2015 with the winding-up petition being adjourned until 30th November 2015.
The Club’s current financial situation is that they owe £166,000 in unpaid taxes, £10.25 million to the Council further to a loan to redevelop Sixfields Stadium, including a new East Stand (which has not been completed), and that no staff or players were paid for the month of October.
In an attempt to obtain “more control over the Club’s future” the Council has brought an Administration petition against the Club. This will also allow time to continue reviewing the Club’s future and to consider advanced discussions with Kelvin Thomas, Oxford United’s former chairman, who has expressed an interest in purchasing the Club.
The Administration petition will result in the granting of an interim moratorium under paragraph 44 of Schedule B1 to Insolvency Act 1986. This means that for the period of time before the Administration petition is heard, an order granting the winding-up of the Club cannot be granted. Should the Administration petition be successful, then a petition to wind-up the company behind the Club cannot generally be presented. In effect, the Administration application takes precedence over the winding-up petition.
This is our local football club which is why I am keeping a close eye on the proceedings to see how its future pans out. If you have any need for advice on an insolvency issue, please feel free to contact me or one of our Corporate Commercial team on 01908 660966.