Hereford United's creditors reject CVA proposal

Hereford United FC v Slough Town FC. Southern League Premier. Directors John Edwards & Elke Thuerlings. 1433_5021 (9236699)

Hereford United FC v Banbury United FC. Southern Premier League. Hereford's goalscorer Deqwon Eubanks. 1434_66005 (9485955)

Hereford United FC v Banbury United FC. Southern Premier League. Hereford's Samuel Akinde is denied by Joshua Hill. 1434_66009 (9485965)

First published in Sport by

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).

Comments (3)

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12:38pm Thu 21 Aug 14

Cendrick Smemt says...

This paints quite a different picture. This time last week it sounded like a unanimous rejection, when actually 59% voted in favour - including (and this really surprises me) Martin Foyle. If the club can pay off HMRC, the club may survive beyond 1st Sept.

Again, I find myself wishing that we weren't hearing things in dribs and drabs.
This paints quite a different picture. This time last week it sounded like a unanimous rejection, when actually 59% voted in favour - including (and this really surprises me) Martin Foyle. If the club can pay off HMRC, the club may survive beyond 1st Sept. Again, I find myself wishing that we weren't hearing things in dribs and drabs. Cendrick Smemt
  • Score: 7

6:43pm Thu 21 Aug 14

Cambridge fan says...

As a Cambridge fan I have been watching this story unfold with a degree of 'but for the grace of God....'
I can't help thinking that since June just about everyone involved is culpable of doing real damage to the prospects of Football in Hereford. I will share my views on the owners, the trust, those who are boycotting and those who aren't in the coming days .... But for now I reserve my criticism for the media ....
I have observed some 'lazy' journalism with too many happy merely to quote the owners or just cut and paste their statements into their publications. Where is the investigative journalism? Where are the questions? Where are the in-depth interviews? Where is the real fact finding? There's simply been too little leaving a massive and dangerous information vacuum. It's this void that has allowed the plausible and understandable conspiracy theories to develop. Personally I don't believe all these theories but I get why many do.
Then of course there's the national media ... Shhhhh! You can almost hear the silence. To be fair the BBC have given some time to the saga, but that's about it. It is one of the tragedies of lower league football that finances often overshadow what's going on the pitch ... so an in depth article in one of the broadsheets will go some way to explaining what's wrong with our game.

I'm happy for anyone to copy this into Bulls Banter forum
As a Cambridge fan I have been watching this story unfold with a degree of 'but for the grace of God....' I can't help thinking that since June just about everyone involved is culpable of doing real damage to the prospects of Football in Hereford. I will share my views on the owners, the trust, those who are boycotting and those who aren't in the coming days .... But for now I reserve my criticism for the media .... I have observed some 'lazy' journalism with too many happy merely to quote the owners or just cut and paste their statements into their publications. Where is the investigative journalism? Where are the questions? Where are the in-depth interviews? Where is the real fact finding? There's simply been too little leaving a massive and dangerous information vacuum. It's this void that has allowed the plausible and understandable conspiracy theories to develop. Personally I don't believe all these theories but I get why many do. Then of course there's the national media ... Shhhhh! You can almost hear the silence. To be fair the BBC have given some time to the saga, but that's about it. It is one of the tragedies of lower league football that finances often overshadow what's going on the pitch ... so an in depth article in one of the broadsheets will go some way to explaining what's wrong with our game. I'm happy for anyone to copy this into Bulls Banter forum Cambridge fan
  • Score: 5

8:33pm Thu 21 Aug 14

Cendrick Smemt says...

I quite agree. Very few people are going to come out of this well, and I include myself in that. I got wrapped up in the boycott-everything frenzy until I realised it was just cutting my nose off to spite my face. I look forward to reading your future posts.
I quite agree. Very few people are going to come out of this well, and I include myself in that. I got wrapped up in the boycott-everything frenzy until I realised it was just cutting my nose off to spite my face. I look forward to reading your future posts. Cendrick Smemt
  • Score: 5

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