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RUFC could lose League Status

RUFC could lose League Status

Rotherham United face the prospect of losing their Football League status if creditors fail to vote for a Company Voluntary Arrangement is The Advertiser's glum report today.

Unless the buyer of the club agrees to buy it as a going concern and pay all debts in full the next stage will be to get a CVA which would allow the club to leave administration like the one that the Coleman/Maccio reign successfully accomplished two years ago.

A CVA would mean that the club could continue to trade and gather funds that would then be distributed amongst the creditors. Seventy-five per cent of the total debt pot have to agree to this and it is thought that the Inland Revenue won't do this. In that case a CVA could not go ahead and the Administrator would sell to the highest bidder who would then have to reach an agreement with the creditors.

This would be in breach of Football League regulations and the club would then lose the Football League share which means they could, at the least, have to start next season on minus fifteen points or, at worst, lose their football league status.

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Writer:Herringthorpe
Date:Friday April 11 2008
Time: 8:18AM

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