EFL Rejects Attempts by Derby County to Use Insolvency Laws
The EFL have rejected attempts by Derby County, to use insolvency laws to
settles some debts.
The EFL says Derby County must not use insolvency laws, to settle debts some
of their outstanding debts , if they wish to come out of administration.
The club are subject of unresolved compensation claims from fellow clubs
Middlesbrough & Wycombe Wanderers.
Derby County say both claims should not be treated as " football related debts ",
to which the EFL made a statement, saying it does not agree & feels the clubs
administrators Quantuma, must now consider how they wish to proceed.
Quantuma have been given until the beginning of March 2022, to provide proof
of how Derby County will be funded, for the rest of the season. The deadline was
extended from the 1st of February, last Thursday .
The Binnie family submitted a formal £28m takeover last month , but that price
did not include the stadium, with Pride Park still owned by Mel Morris, who put
Derby County into administration, the ground also has a charge in excess of £20m
to American finance company MSD, for which Mel Morris is guarantor to the debt.
EFL said, " The club is suffering from critical legacy debts, which reach into
10's of millions of pounds, all which need to be resolved if a solution is to be found ".
The monies owed to HMRC & the loans from MSD secured against the clubs assets
& the stadium.
There was a suggestion a combined payment of about £7m would settle the issues
involving Middlesbrough & Wycombe Wanderers.
The EFL are requesting the attendance of administrators, & the following stakeholders
to participate : The current highest bidder[s] , Middlesbrough, Wycombe Wanderers,
Mel Morris, MSD partners & the HMRC.
Since -
Mel Morris has made a statement, & has said that Middlesbrough & Wycombe Wanderers
should not pursue the claim against Derby County, instead pursue the claim against
him personally in the High Court, so the club can move on.
Summary -
The administrators of Derby County Quantuma saying the compensation
claims made by Middlesbrough & Wycombe Wanderers, should go through the
insolvency laws procedure, therefore perhaps there claim might end up so much in
the pound has a final settlement.
The EFL have done the right thing by saying, the claims are a football related debts, so
they don't come under insolvency laws procedure.
The club have overspent in years past, & must pay the consequence related to the bad
financial dealings in the club.
The joint £7m compensation payment suggestion to Middlesbrough & Wycombe Wanderers,
would perhaps be laughed at by Middlesbrough getting half, to what they could have got
if they had gone to the play-offs, then perhaps money from the premier league, if they
had achieved promotion.