Tue, 19 Aug 2014 | ADMINISTRATION
Hereford United Football Club have been given two weeks to pay their debts or face liquidation.
The club met with creditors last week to hopefully agree a Company Voluntary Arrangement (CVA). However, when the repayment proposal was rejected, the club, nicknamed the Bulls, was given until 1 September to pay off the outstanding debts.
Hereford United were expelled from the Football Conference in June because of its financial problems and now play in the Southern Premier League. It has been reported that HMRC, a major creditor that was owed £170,000, was unhappy with the terms of the CVA.
To make matters worse, on the same day as the CVA being rejected, Hereford’s owner Tommy Agombar was disqualified from being involved with the club after failing the Football Association’s fit and proper persons test. Mr Agombar bought the club for £2 in June after they fell out of the Conference and he says he has invested about £240,000.
Despite the worrying state of affairs, director John Edwards is confident the club will be saved from extinction. He says that they are now selling season tickets and approaching sponsors to acquire the necessary funds to cancel the debt.
Mr Edward told BBC Sport: "We always said we would not do that until unless we knew we had a product to sell.
"After meetings with investors over the weekend, we are now 100 per cent certain of that."
The director’s optimism comes despite the fact that on Friday (15 August) insolvency practitioner Marc Landsman advised no one to invest in the troubled club. Hereford United are currently fourth from bottom of the Southern Premier League with one point from their opening three games.
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