Saturday, 4 December 2021

Derby County and the threat of liquidation – The Athletic


In the little over two months since Carl Jackson and Andrew Hosking were named joint administrators, fans of Derby County have become used to gut-punches. There have been domestic and international millionaires linked with purchasing the club, Chris Kirchner the most publicised, but there remains little clarity on what lies ahead.

If the prospect of Derby going under was not enough bad news, a 12-point deduction followed, placing the club at the bottom of the Championship and on minus points. After a solid response on the pitch, including a five-match unbeaten run, Wayne Rooney and his players remained optimistic that the deficit was surmountable. But with past misdealings coming back to haunt them, Derby incurred a further nine-point penalty. With performances and results drying up, that second deduction plummeted the club onto minus points for the second time in under two months, effectively relegating them to League One.

In the aftermath of that blow, victory over Bournemouth and a draw away to the division’s other leading promotion candidates Fulham almost took the edge off the inevitable prospect of third-tier football next August. However, with recent news suggesting Derby could soon be obsolete unless they cut an unlikely deal with HMRC — the UK tax office — a first season outside of the top two tiers since 1985-86 threatens to be the least of their problems.

Gerald Krasner, of Begbies Traynor, is an experienced insolvency practitioner and former administrator at Wigan Athletic, Bournemouth and Port Vale.

In conversation with The Athletic, he clarifies the prospect of liquidation and the various stages of the administration process.

What is the process of finding a buyer when in administration?

“First of all, you publicise it. You prepare a sales pack, and then it starts.





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source https://d0llars.com/derby-county-and-the-threat-of-liquidation-the-athletic/

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