Creditors Meeting News

30/07/13: Positive result from noon meeting at East End Park

A meeting of creditors of Dunfermline Athletic Football Club was held at East End Park at 12 noon on Tuesday 30th July. At this meeting representatives of the administrator, BDO LLP addressed approximately 50 creditors.

Administrators Bryan Jackson and Robert Barclay of BDO LLP were joined at the top table by legal adviser, Gordon Hollerin of Harper MacLeod. Bryan Jackson explained the purpose of the meeting and that the CVA requires 75%, by value, of all creditors to vote in favour. It was announced that 100p in the pound would only go to preferential creditors.

The terms of the offer included:-
Pars United will acquire the shares in exchange for the payment of £1 sterling.
Pars United will also contribute £80,000 (the CVA amount) to the fund available to creditors as part of a company voluntary arrangement.
Pars United will assume responsibility for settling the outstanding "football debts" of DAFC which are understood not to exceed the sum of £170,000
Pars United will make a contribution of £100,000 plus VAT towards the fees of the administrators of DAFC.

Floating Charge Security means East End Park Ltd would be entitled to any residual over and above the amounts stated above. KPMG as administrators of East End Park Ltd will not require a creditors meeting similar to the DAFC one held today. This is because the bank is the main creditor.

The CVA proposal was carried by an overwhelming majority and is dependent on the amount offered for East End Park Limited 28 days for objections from any creditors. The administrator said that they would not expect objections but that was a possibility