Dunfermline bid decision to be made this month

0
Have your say

D-DAY in Pars United’s bid to purchase Dunfermline Athletic has been announced as 30 July.

The fans’ group, who were named as preferred bidders for the Fifers by administrators BDO earlier this month, will present their offer to creditors during a meeting at East End Park and a vote will decide the fate of the East End Park outfit.

The meeting was originally slated for 12 July but was postponed until the end of the month.

Creditors amounting to at least 75 per cent of the club’s total debt – believed to be in the region of £8.5m – must accept whatever pence-in-the-pound deal is put forward in order for a Company Voluntary Arrangement (CVA) to be passed.

Although the formalities of exiting administration can take several weeks, as long as the CVA is accepted before 2 August, the Pars will avoid paying a £150,000 bond to the SFA as penance for starting the season in administration and will not incur a ten-point deduction.

However, if the deal is rejected, Dunfermline will almost certainly be liquidated.

Bob Garmory who, along with club legend Jim Leishman, is a figurehead of the Pars United movement, is “hopeful” the group are now close to gaining control of the football club and stadium.

Garmory said: “When you consider that, a few months ago, we did not know if we would get to the end of the season, we have come a long way.

“We are now in a position where we can – albeit tentatively – think about next season and plan for the future. It is exciting for us and we are hopeful the CVA will pass.

“However, you also have to acknowledge that creditors will go into that room and be asked to write off a significant amount of money.

“I would not be happy about that, and it would not be right to celebrate that fact.”

Pars United are also preferred bidders for East End Park, which is owned by a separate company East End Park Ltd (EEP Ltd).

EEP Ltd, like Dunfermline, are in administration, although it is being handled by different insolvency experts, KPMG.

Back to the top of the page