Hereford United's financial plight will not be affected by news that the Chelverton Group Ltd are set to go into liquidation following a creditors' meeting this Tuesday, writes Ian Morgan.

The cash-strapped Bulls owe a £1million loan plus interest next May to a special purpose company called Formsole, who hold the leases to the Edgar Street ground.

Chelverton and Bristol Stadium (BS) equally owned Formsole until August last year when Chelverton decided to purchase the BS interest.

Formsole spokesman Simon Morgan said: "The investment in Hereford United was made by Formsole and the company continues to be solvent. However, the Chelverton Group Ltd has been in financial problems for some months and the problems incurred in Europe have come back to the UK."

Morgan said he would remain as the representative for Formsole.

Herefordshire Council leader Terry James said: "I think things are moving in the right direction. It's now accepted that the football ground will not be moving and the whole Edgar Street area is going to be developed. Any such development will be working in association with the council and not doing anything harmful to the football club."

United chairman Graham Turner said: "We have just had meetings with Terry James and Simon Morgan. Things are moving slowly at the moment and there is not very much more I can add."