Bury face winding up order tomorrow

[WanChaiMiller]

Latest update

Bury face a 12-point deduction next season after owner Steve Dale put forward a proposal to help clear some of the club's debts.

In a company voluntary arrangement (CVA) proposal, seen by BBC Radio Manchester, Dale has offered to pay the club's football creditors in full.

Unsecured creditors, including HMRC, will be paid 25% of what they are owed.

If approved, the CVA would qualify as an insolvency event under EFL rules, which would see Bury deducted points.

The proposal states that football creditors are owed £950,652 while unsecured creditors are owed £5,982,765, including £3.6m to Dale.

The club appeared in the High Court last week over a winding-up petition originally brought by former head coach Chris Brass but which was taken over by HM Revenue & Customs (HMRC).

HMRC are now owed £1m but would be paid a quarter of what they are due under the arrangement, while Dale states he will not be seeking the money owed to him by the club.

The proposal requires agreement from creditors owed 75% or more of the total debts to be passed and also requires agreement from 50% of the club's shareholders.

The club are set to reappear in court on 9 July at 11:00 BST to meet with creditors and agree to a resolution.


Shame after getting promotion, they look deep in the mire and one of favourites to go straight back down.

Can maybe get it through on his own vote together with football creditors.

Anyone know what majority is required to get the cva approved?

[WanChaiMiller]

Glad Im not one of the unsecured creditors about to be stitched up by Dale.

[Grist_To_The_Mill]

Glad Im not one of the unsecured creditors about to be stitched up by Dale.

You are if you are a U.K. tax payer

[CASPER-64-FRANK]

One alternative to the CVA is liquidation.
Then no-one gets anything.

[WanChaiMiller]

You are if you are a U.K. tax payer

Yes agree.

[WanChaiMiller]

One alternative to the CVA is liquidation.
Then no-one gets anything.

Exactly - and its what they play off.

[CASPER-64-FRANK]

Exactly - and its what they pay off.

I can't see what else Dale can do to save the club. The debt is too high to manage, at least some creditors will be paid in full, that is if they agree to the terms of the CVA. Unfortunately some will lose out.

[frogmiller]

Football clubs have and always will use local businesses and supporters of the club. It is a natural thing to do.

They know the risks and hope that it won't happen and they won't lose everything. The same suppliers are often given contracts after the event as few others will touch them.

[WanChaiMiller]

I can't see what else Dale can do to save the club. The debt is too high to manage, at least some creditors will be paid in full, that is if they agree to the terms of the CVA. Unfortunately some will lose out.

Agree with you essentially. But Dale bought the club from Day for £1. Surely if you take a club over you should have the means to be able to finance it. Not sure why creditors should stump up 75% of debt to part finance his venture.

[WanChaiMiller]

But then we've been through a few of these. You live to fight another day. Hope for Bury supporters they can get through these tough times and enjoy some good years as we've done under Stewart.