Reynolds Stands By His Descision

The administrators announced this week that insolvency is inevitable if a deal cannot be reached.

Administrators Wilson Field agreed the sale of the club and its assets to the Sterling group last week and swapped coontracts, but the takeover deal is subject to approval by creditors - and guess who the biggests creditor is? George Reynolds!

Reynolds is unwilling to budge, meaning no deal can proceed, leaving the future of the troubled Division Three club looking very bleak indeed.

Reynolds said: "I don't really care what happens next. I wouldn't like to see the club close but if it did close, it would stop them all fighting over it."

Joint administrator David Field said: "Liquidation is looking likely. There are still opportunities to resolve it, but we're trading at a loss and we can't carry on."

Darlington Supporters' Trust is urging fans to sign an Online petition to the Football League to step in and change its rules to help relieve the log-jam at Darlington FC. The situation at the club is getting increasingly desperate and farcical. As the petition states, the club could be sold under normal insolvency rules, but the Football League regulations which require all the creditors to agree to a sale leave the future for Darlington FC looking bleak. It is very likely that Darlington FC will go out of business.

http://www.petitiononline.com/dst0304/petition.html

Look out also for hard copies of the petition at matches etc - add your name!

Last week, there were hopes that the Sterling Consortium would be able to take Darlington FC out of administration. But that appears, at least the time being, like it will be held up by former chairman George Reynolds. Meanwhile, the club's position is critical.

The petition to the League reads:

Darlington Football Club was placed into Administration on the 23rd December 2003 to avoid a winding up order being presented by the Inland Revenue. The full scale of debts at the club are still be evaluated by the Administrators but are estimated at anywhere from £6m to £30m, the largest creditor being George Reynolds who resigned as Chairman earlier this year.

One of the Club's secured creditors, a finance organisation that loaned money to build the Reynolds Arena, had reached agreement with the Administrators to take the Club out of Administration, but this has been blocked by ex-chairman Reynolds. Mr Reynolds has over the last few months indicated that he would accept 10p in the pound, but is now saying that he will not agree to any sale of the club and that it will close.

The Club could be sold under normal insolvency rules, but the Football League regulations which require all the creditors to agree to a sale leave the future for Darlington FC looking bleak. It is very likely that Darlington FC will go out of business.

The rules, of the Football League as they stand at the moment, are benefiting the people who have caused the problems and penalise genuine parties who could give clubs a realistic future.

We therefore ask the Football League to relax their rules on the procedures for club's coming out of Administration in order to preserve the future of Darlington Football Club.

Please follow the link:
http://www.petitiononline.com/dst0304/petition.html

See also www.darlotrust.co.uk

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