THE CREDITORS of Hereford United plunged the club’s future into doubt after rejecting the directors’ Company Voluntary Arrangement (CVA).
Around 28 creditors and their advisors packed into United’s Starlite Rooms to hear the in-depth proposal from nominee Marc Landsman and to cast their vote.
Two major creditors - businessman Mark Blandford and HM Revenue and Customs - rejected the proposal.
And, after the proposal was rejected by creditors, Landsman said he expected the club to be put into compulsory liquidation in the High Court on Monday, September 1.
He urged those present to ‘work together to build a football team’.
The proposal, to be accepted, had needed 75% of creditors (by value) to vote in its favour.
But 59.3% of the creditors voted in favour and 37.7% rejected the proposed payment plan over three years.
It was the first-ever CVA proposal delivered by Landsman, an insolvency practitioner from Carmichael and Co, which had been rejected.
Former non-executive director Bob Pritchard, Ian Pritchard, former director Dave Preedy and former media officer Jamie Griffiths were among those at Thursday afternoon’s meeting.
The meeting heard that former majority shareholder Tommy Agombar had not passed the FA’s owners and directors’ test because of a criminal conviction.
Agombar, the meeting was told, had transferred his shares and debts in Hereford United from Scrooby Limited and Athelstone Limited to a company called Alpha Choice Limited owned by Irishman Alan Gerald McCarthy.
Landsman said that Agombar had been warned by the FA that Hereford United would be suspended from the Southern League if he remained as the club’s majority shareholder.
“Tommy has invested £400,000 into the club but he has now sold his debts and shares and he’s got no other involvement in the running of the club,” Landsman said.
Landsman, who chaired the meeting, was joined on the top table by directors John Harold Edwards and Elke Thuerlings, and football chairman Andy Lonsdale.
Edwards told those present that the club had received a written offer of sponsorship to the tune of £250,000 from a well-known company which has a High Street presence.
The meeting heard that the son of Tommy Agombar – Thomas Agombar Junior – had resigned from United’s board of directors.
And the club’s accountant Philip Gambrill would also be resigning from the board, Landsman said, unless the CVA proposal was adjourned.
The meeting heard that Lonsdale paid the fee which had helped the club to secure a new ground safety certificate for Edgar Street.
At Friday morning’s shareholders meeting, 61.7% of members voted in favour of the voluntary arrangement, with 38.3% of members voting against it.
Creditors’ voting, for CVA proposal: Alpha Choice Finance Ltd (£466,369.72), APG Associates (£35,626), Astons Coaches (£2,045), British Gas Trading Ltd (£456.22), DLA Piper UK LLP (£36,181.22), Martin Foyle (£72,914.14), Herefordshire and Worcestershire Chamber of Commerce (£253.30), ID Sports and Leisure Ltd (£9,457.20), Lanyon Bowdler LLP (£6,924), Mowtech Landscape Contractors (£18,500), Andrew Porter (£45,512.37), Robert Pritchard (£16,000), Andrew Prosser (£3,800), Linda Richards (£7,000), Wye Valley Brewery Ltd (£461.66).
Creditors’ voting against CVA proposal: Mark Blandford (£125,270), Gregg Davies (£807.50), Jonathan David Evans (£1,000), Graham Goodwin (£23,200), Simon Girling (£25), HM Revenue and Customs (£173,078.38), Jelf Group plc (£2,700), Roger Lloyd (£1,250), Steve Niblett (£1,700), David Charles Walter Preedy (£80,000), Quickskip Hereford Ltd (£564.80), Rockfield Foundation (£104,019), Andrew Smith (£5,000), Springfield Poultry (£55,40), Martin Watson (£30,020).
Abstentions: Nick Nenadich (£10,000), Swallow Drinks South West Ltd (£2,423.06).