What we're signing Yorkshire red?

Surprised to hear we (Salford FC 1914) Ltd were down in Court again this morning. I thought there was a CVA in place. Any reasons please?

That's interesting. Perhaps it was just a formality. I wonder if a creditor has declined entering into the CVA.

Wasn't the petition simply adjourned at the last hearing? Court appearances will continue until the petition is dismissed.



I get a little confused with this CVA stuff.



Is the former company (Wilkie and Clague) putting forward a proposal for a CVA? If so why, that business doesn't exist anymore.



If it is the new company, that's worrying, if we can't pay the debts how can we pay these stars?

The company still exists and is entering into a CVA. The club is being run by a newco.

Seems an odd way to deal with the debts, have we paid off HMRC adn the players and this is a deal to deal with the council?

All the old liabilities are with the Salford Football Club ( 1914) Ltd

the CVA proposed was a complete payback of all creditors but over a 5 yr period , maybe some remaining creditors have knocked it back.





all current activity with Dr Koukash- Andrew Chalmers ( newco ) is under Salford City Reds ( 2013 ) Ltd.

And there doesn't appear to be any change in ownership of Salford Football Club (1914) Ltd - nothing registered at Companies House since 8th December when the accounts were filed - curiouser & curiouser said Alice!

A Newco usually is independent of the parent, the debts stay with the parent. This is usually after a club goes into administration and a buy out happens.

That's why Rangers NewCo didn't receive any money from players that left.



Was the petition dismissed today?

Not sure but I think all creditors have to agree and have to be treated equally but I could be wrong.

I assume the Wilkinson loans were converted to equity and are lost forever,unlike the creditors who will be paid over 5 years.

I think the carrot is to tell people that,if they don't agree to this,the firm will be liquidated and nobody will receive anything.

The CVA might well have been a RFL stipulation to allow the Rugby franchise to be transferred to a Newco.

Also to avoid a points deduction. I imagine there are benefits for Koukash here if he is indeed paying off the debt. For one, the newco doesn't inherit a bad credit history.