EFL Rejects Attempts by Derby County to Use Insolvency Laws

[Ericsladkilnhurst]

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.

[clarkey1974]

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.

(Mel Morris)Wycombe and boro take me to the high court for the 7 million..so the deal to sell the Club can go through…oh and by the way I own the stadium…ummmm…

[Ericsladkilnhurst]

Wycombe Wanderers chairman's statement to the EFL proposed meeting between all parties.

Wycombe Wanderers chairman Rob Couhig has responded to the latest EFL statement
regarding the situation around Derby County.
After the EFL said, there should be a meeting of all parties.
The Wycombe chairman's statement said, " Since last November, we have asked the administrators
for a meeting, to conduct good faith negotiations to resolve the issue between the two clubs,
despite repeated requests , we have never heard a word from them ".
" Perhaps now that the request has come from the EFL, they will finally agree to meet, & try to
come to a responsible commercial solution, as soon as I am told when & where the mediation
will take place, I will fly back to the U/K & personally attend ".

Summary -
It would seem according to the Wycombe Wanderers chairman, that the administrators have
been dragging their feet, in looking to find a solution, so by not entering into negotiations
with Wycombe Wanderers, which would not benefit Derby County, is not looking after their
clients interests, not forgetting Mel Morris took the club to administration, & employed
Quantuma has administrators.

[flourbasher]

Yet another example of Derby trying to wriggle out of a situation that is of their own making

Good point by Clarkey on Morris not relinquishing his ownership of the ground. That won't be helping a sale either

Also a good point made by someone else a while ago that we are obsessed. We love a good soap opera

[Ericsladkilnhurst]

Yet another example of Derby trying to wriggle out of a situation that is of their own making

Good point by Clarkey on Morris not relinquishing his ownership of the ground. That won't be helping a sale either

Also a good point made by someone else a while ago that we are obsessed. We love a good soap opera

It was mentioned a while ago of me being obsessed with the Derby County saga, title of my last blog that said
Derby County could go into liquidation, was not far off the mark.
Has to Pride Park ownership by Mel Morris, he was guarantor to the loan using the ground as collateral from
American finance firm MSD.

[flourbasher]

Plus they've been given another month to find a buyer
It's clearly a toxic situation, similar to that at Gigg Lane, and potential buyers are finding some serious risks they are not prepared to take on

But unlike Bury FC they've been given reprieve after reprieve
I don't want to see them liquidated but this can't go on forever

[Brin]

Why another extension/delay if all facts have been laid bare and need dealing with now?

[flourbasher]

Why another extension/delay if all facts have been laid bare and need dealing with now?

The extension is to try and find a credible buyer instead of liquidating them
I don't believe it's a delay to punish them even further

[Ericsladkilnhurst]

Derby County have to prove they have the funds to compete in the championship,
for the rest of the season.
Mel Morris is trying to deflect some of the debts, by telling Middlesbrough & Wycombe
Wanderers to sue him personally in the high court.
But there is still a huge amount of money owed, HMRC & MSD finance company among
creditors.
The Middlesbrough & Wycombe Wanderers claims is what is holding up a buyer it seems,
with bidder[s] not wanting to pay the Middlesbrough & Wycombe Wanderers money
claim out of their own pocket.

[Grist_To_The_Mill]

It's a legal minefield

Money owed everywhere and lots of it

So I assume the Derby legal teams are working for nothing?