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Darlington creditors could lose out

Darlington FC could pay back only a fraction of what they owe under the terms drawn up by administrators.

The Company Voluntary Arrangement (CVA) would see creditors paid back less than a penny for every pound owed to them.

A host of local and national businesses are owed anything from 64p to £36,000.

The agreement still has to be approved by 75% of the creditors, which will be voted on at a meeting at the Darlington Arena on Wednesday.

Spokesman for administrators Brackenbury Clark and Co said: “The bottom line is we are pretty confident that it is going to be approved because the debt to Messrs Houghton, Scott, Sizer and to Darlington Football Club and Holdings makes up the lion’s share.”

The club has £7.8m of debt, including more than £21,000 to Durham Constabulary and nearly £3,000 to three local schools.

Under the terms of the agreement the club would pay back 0.9p on the pound, meaning Durham Constabulary would receive a cheque for less than £200.

The CVA will see the club return to former chairman George Houghton, who is in negotiations to sell the club to former vice-chairman Raj Singh.

The administrators said that without redundancies and wage referrals by players and staff, the club would have folded.

This was posted in Bdaily's Members' News section by Ruth Mitchell .