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It gets even worse for Wrexham
- Thread starter Soton Seagull
- Start date
D'Angelo Saxon
SW19ULLS
Uh-oh. Anyone got a torch?
o dear
Storer68
New member
quote
"Mr Hamilton has previously said it may be "impossible for the club to avoid administration and or liquidation in the short term."
He said he has already committed £632,500 of his own money to the running of Wrexham Football Club by way of an interest free loan. "
A touch worrying - £632,500 has the same numbers asw £56.32.00 - are the two related!!!!!!
"Mr Hamilton has previously said it may be "impossible for the club to avoid administration and or liquidation in the short term."
He said he has already committed £632,500 of his own money to the running of Wrexham Football Club by way of an interest free loan. "
A touch worrying - £632,500 has the same numbers asw £56.32.00 - are the two related!!!!!!
StephenWrexhamFc
New member
The electricity is back on now!
Lord Bracknell
On fire
What is Hamilton on?Storer68 said:
Isn't "liquidation in the short term" the same thing as being "dead in the short term"?
ie just like being dead.
Northstander
Well-known member
- Oct 13, 2003
- 14,036
StephenWrexhamFc said:
readingstockport
New member
Mozzer, one of our trust chaps, who some of you know, has been talking to the chair of their trust and he reckons that our game their on Tuesday could well be the last at the racecourse. Apparently there is a winding up petition in the high court next week from the IR. and after failing with franchise it could well be the IR are out for blood this time 
Lord Bracknell
On fire
Is Hamilton going to contest this? Or is this part of his cunning plan to deliver vacant possession of the Racecourse Ground to his property development company?readingstockport said:
readingstockport
New member
I don't know. If you like I will try to to find out LB. I'll ask on the SD and our lists and see if I can get an answer.
readingstockport
New member
From Rob Griffiths on the SD list. This looks bad, fookin bad.
"We have had our bank accounts frozen and yesterday our electricity was cut
off, eventually restored later in the day. These are literally dark times
at Wrexham.
Saturday v Hull City could be our last ever league game and Tuesday v
Stockport (LDV) our last ever game at the Racecourse.
The Supporters Trust is doing what we can. In the short term. the club
needs to find cash to buy the tax bill or come to an agreement with the
Inland revenue, if that is possible. £800k is the outstanding amount
mentioned in the court petition. If we can delay the proceedings then we do
have a real chance to get through this, if Mr Hamilton can be persuaded to
handover the club to the fans and sell the ground to the council.
We are taking legal advice, but does anyone have previous experience of the
winding up process and what - if anything - a Trust or Supporters Direct can
offer the Court to be taken into account before a judgement is passed?
Rob Griffiths (Vice Chair - Wrexham Supporters Trust)"
"We have had our bank accounts frozen and yesterday our electricity was cut
off, eventually restored later in the day. These are literally dark times
at Wrexham.
Saturday v Hull City could be our last ever league game and Tuesday v
Stockport (LDV) our last ever game at the Racecourse.
The Supporters Trust is doing what we can. In the short term. the club
needs to find cash to buy the tax bill or come to an agreement with the
Inland revenue, if that is possible. £800k is the outstanding amount
mentioned in the court petition. If we can delay the proceedings then we do
have a real chance to get through this, if Mr Hamilton can be persuaded to
handover the club to the fans and sell the ground to the council.
We are taking legal advice, but does anyone have previous experience of the
winding up process and what - if anything - a Trust or Supporters Direct can
offer the Court to be taken into account before a judgement is passed?
Rob Griffiths (Vice Chair - Wrexham Supporters Trust)"
captainmorganrum
Wrexham
Lord Bracknell said:
Yes, horrifyingly it is.
No club.
No need for a ground.
No ground.
Lots of lovely retail developments
Pulcinello
New member
- Oct 21, 2004
- 15
http://icnorthwales.icnetwork.co.uk...line=the-dragons--darkest-hour-name_page.html
(from The Wrexham Daily Post, Friday 29th October 2004).
Please note that there are THREE PAGES to this article - use the arrow at the bottom of each page to move on to the next one.
(from The Wrexham Daily Post, Friday 29th October 2004).
Please note that there are THREE PAGES to this article - use the arrow at the bottom of each page to move on to the next one.
Last edited:
Lord Bracknell
On fire
The Albion get a mention in the Daily Post article:-
The Dragons' darkest hour Oct 29 2004
Exclusive By Mark Currie And Steve Bagnall, Daily Post
WREXHAM FC's bank account has been frozen - marking a new low in the club's deepening cash crisis.
HSBC took the decision in response to an Inland Revenue winding-up petition against the club.
The move means players and staff cannot be paid.
Meanwhile the club's electricity was cut off on Wednesday - only to be reconnected yesterday after an outstanding bill was paid in cash.
An insolvency specialist was also called to the club yesterday to help solve its problems.
An HSBC spokesman said the bank was legally obliged to freeze the account because of the Inland Revenue winding up petition.
The petition is due to be heard in the High Court on November 17.
But club chairman Alex Hamilton last night blasted the bank's decision
He said the bank's action made it impossible to pay monthly salaries - due this week - despite what he claimed was the balance of the club's account being healthier than it had been for many months.
Mr Hamilton said: "Cheques are bouncing, the electricity was cut off yesterday because we could not obtain a bank draft to pay the bill and we are struggling to pay salaries that are due at the end of the month."
He claimed the bank's action was premature, given the current state of the club's finances.
"There is the income from Tuesday night's gate receipts and the latest stage payment from the Football League, which means we have around £160,000 in the account," he added..
"The bank already has a security on the training ground, which is valued at £500,000, and on the lease of the stadium, which is valued at £1m.
"The value of both securities is four times the amount owing to the bank by Wrexham FC but they have seized all the money in the account."
Mr Hamilton revealed that David Acland, a Preston-based partner in insolvency specialist firm, Begbies Traynor, was called in yesterday to try to steer the club through its present problems without going into administration.
Administration would trigger a 10-point penalty from the Football League and threaten the club's status as a League One club.
"The club is now acting under the informal supervision of Mr Acland, who is currently providing constant and direct supervision," he added.
Mr Acland, who visited the Racecourse yesterday afternoon to meet the club's two other directors, Dave Bennett and Dave Griffiths.
Mr Griffiths said afterwards: "At the moment we cannot get any money out of the bank.
"Hopefully though this will be sorted out in a matter of days rather than weeks. Meetings are taking place.
"What we really need now in the short term is fans coming through the gates on Saturday to support us. Denis Smith has done a fantastic job keeping up the spirits of the players and me and Dave Bennett have worked tirelessly behind the scenes."
Mr Acland immediately authorised payment of the unpaid electricity bill to ensure tomorrow's home game against Hull City would go ahead.
Scottish Power Manweb refused to say how much the club owed but said the decision to switch the power off was taken on Wednesday. A spokeswoman added: "We have now hopefully resolved the issue."
Mr Hamilton said he hoped to pre-empt the Inland Revenue winding-up petition in respect of around £900,000 in unpaid tax - before it goes to court.
"The winding-up petition is due to be heard on November 17 but I will be seeking to have the figure adjusted in respect of a down-payment and an agreed instalment plan.
"I'm hoping Wrexham Supporters' Trust and other fans' organisations, who are doing their best, can help and I've asked the other directors to consider what they personally can contribute.
"I have already put £235,000 of my own money in interest-free loans into the club and my resources are now depleted. That money could well be written off if the Inland Revenue is successful. But I'm still working with the other directors to try and find a solution."
HSBC's decision to freeze the club's assets, together with the impending winding-up petition, pose the greatest threat to Wrexham's survival in what has been a troubled existence since before the departure nearly three years ago of long-time chairman and majority shareholder Pryce Griffiths.
Incoming chairman Mark Guterman, who Mr Hamilton now claims was always acting for him, was a pivotal figure in the purchase by Wrexham FC of the freehold of the Racecourse ground from owners Wolverhampton & Dudley Breweries for £300,000.
On the same day, ownership of the land was transferred to a company owned by Mr Hamilton, effectively giving him control of both the club and stadium.
Just over 12 months ago the terms of Wrexham's 125-year lease of the Racecourse were altered in favour of an option to terminate the agreement at 12 months notice.
That opened the way for a potential commercial redevelopment of the site, with the club being relocated to a new purpose-built stadium elsewhere in the town.
The suggestion provoked outrage from fans, Wrexham County Council and local representatives in both the Welsh Assembly and House of Commons.
Mr Hamilton, who ousted Mr Guterman as chairman in June this year, decided the following month to exercise the termination clause. This means that Wrexham FC could be evicted in July from the home the club has occupied for more than 100 years.
In the background, a dispute between the former business partners has resulted in Mr Guterman successfully going to court to freeze Mr Hamilton's assets in relation to the club.
There has been widespread speculation - denied by Mr Guterman - that he is now leading a consortium seeking to buy the club.
Earlier this month, Wrexham County Council also agreed in principle to open negotiations with Mr Hamilton for the purchase of the Racecourse Stadium, which is the region's biggest and most prestigious sporting venue.
CLUBS IN CRISIS
WREXHAM aren't the only club who have teetered on the brink during the past few years. Post Sport's GARETH BICKNELL looks at the other clubs who have battled for their futures.
LEEDS UNITED
AFTER chairman Peter Ridsdale left with the club in £100m of debt, the new board has reduced the crippling sum to just over £30m.
Led by Gerald Krasner, the men at the helm have sold most of last season's first team as well as the club's Thorp Arch training ground.
But now a consortium bidding to buy the club has warned the board it must sell the club or the ground, and that the consortium's £25m takeover offer is the only way it can afford to keep the Elland Road stadium.
BRIGHTON
SINCE Brighton's Goldstone Ground was sold in 1995, supporters groups have pushed for a new stadium.
Plans for a 22,000-seat arena are with the Office of the Deputy Prime Minister, which will make the final decision.
The plans alone cost the club £2.5m. Supporters fear that if the proposal is rejected the club will be doomed and are petitioning John Prescott to give the plans the go-ahead.
CHESTER CITY
CITY were considering the prospect of entering adminstration after the club was served with a winding-up order by Customs and Excise over alleged unpaid VAT in July. But the club has managed to come to an arrangement with the Inland Revenue and other creditors in order to restructure its debts.
The debts date back to before chairman Stephen Vaughan ploughed £3m into the club.
LEICESTER CITY
FACING debts of around £30m, the Foxes were taken into administration in October 2002.
Determined to save his home-town club, former Leicester and England striker Gary Lineker led a consortium which took control from the administrators.
The administrators negotiated a compromise of the club's debts - legally known as a Company Voluntary Arrangement or a "CVA" - with its creditors before selling the club to the Lineker consortium.
BRADFORD CITY
BRADFORD have had to go into administration twice after the club admitted it was £12m in the red and owed the Inland Revenue £40,000.
The club faced expulsion from the football league before creditors agreed a CVA with the administrators as part of a rescue package. Staff, playing and non-playing, agreed to a wage deferral.
In August this year, Jim Brown, chairman of Bradford's steering committee, announced the club's future was secure after the required 75% of creditors agreed to the CVA.
The Dragons' darkest hour Oct 29 2004
Exclusive By Mark Currie And Steve Bagnall, Daily Post
WREXHAM FC's bank account has been frozen - marking a new low in the club's deepening cash crisis.
HSBC took the decision in response to an Inland Revenue winding-up petition against the club.
The move means players and staff cannot be paid.
Meanwhile the club's electricity was cut off on Wednesday - only to be reconnected yesterday after an outstanding bill was paid in cash.
An insolvency specialist was also called to the club yesterday to help solve its problems.
An HSBC spokesman said the bank was legally obliged to freeze the account because of the Inland Revenue winding up petition.
The petition is due to be heard in the High Court on November 17.
But club chairman Alex Hamilton last night blasted the bank's decision
He said the bank's action made it impossible to pay monthly salaries - due this week - despite what he claimed was the balance of the club's account being healthier than it had been for many months.
Mr Hamilton said: "Cheques are bouncing, the electricity was cut off yesterday because we could not obtain a bank draft to pay the bill and we are struggling to pay salaries that are due at the end of the month."
He claimed the bank's action was premature, given the current state of the club's finances.
"There is the income from Tuesday night's gate receipts and the latest stage payment from the Football League, which means we have around £160,000 in the account," he added..
"The bank already has a security on the training ground, which is valued at £500,000, and on the lease of the stadium, which is valued at £1m.
"The value of both securities is four times the amount owing to the bank by Wrexham FC but they have seized all the money in the account."
Mr Hamilton revealed that David Acland, a Preston-based partner in insolvency specialist firm, Begbies Traynor, was called in yesterday to try to steer the club through its present problems without going into administration.
Administration would trigger a 10-point penalty from the Football League and threaten the club's status as a League One club.
"The club is now acting under the informal supervision of Mr Acland, who is currently providing constant and direct supervision," he added.
Mr Acland, who visited the Racecourse yesterday afternoon to meet the club's two other directors, Dave Bennett and Dave Griffiths.
Mr Griffiths said afterwards: "At the moment we cannot get any money out of the bank.
"Hopefully though this will be sorted out in a matter of days rather than weeks. Meetings are taking place.
"What we really need now in the short term is fans coming through the gates on Saturday to support us. Denis Smith has done a fantastic job keeping up the spirits of the players and me and Dave Bennett have worked tirelessly behind the scenes."
Mr Acland immediately authorised payment of the unpaid electricity bill to ensure tomorrow's home game against Hull City would go ahead.
Scottish Power Manweb refused to say how much the club owed but said the decision to switch the power off was taken on Wednesday. A spokeswoman added: "We have now hopefully resolved the issue."
Mr Hamilton said he hoped to pre-empt the Inland Revenue winding-up petition in respect of around £900,000 in unpaid tax - before it goes to court.
"The winding-up petition is due to be heard on November 17 but I will be seeking to have the figure adjusted in respect of a down-payment and an agreed instalment plan.
"I'm hoping Wrexham Supporters' Trust and other fans' organisations, who are doing their best, can help and I've asked the other directors to consider what they personally can contribute.
"I have already put £235,000 of my own money in interest-free loans into the club and my resources are now depleted. That money could well be written off if the Inland Revenue is successful. But I'm still working with the other directors to try and find a solution."
HSBC's decision to freeze the club's assets, together with the impending winding-up petition, pose the greatest threat to Wrexham's survival in what has been a troubled existence since before the departure nearly three years ago of long-time chairman and majority shareholder Pryce Griffiths.
Incoming chairman Mark Guterman, who Mr Hamilton now claims was always acting for him, was a pivotal figure in the purchase by Wrexham FC of the freehold of the Racecourse ground from owners Wolverhampton & Dudley Breweries for £300,000.
On the same day, ownership of the land was transferred to a company owned by Mr Hamilton, effectively giving him control of both the club and stadium.
Just over 12 months ago the terms of Wrexham's 125-year lease of the Racecourse were altered in favour of an option to terminate the agreement at 12 months notice.
That opened the way for a potential commercial redevelopment of the site, with the club being relocated to a new purpose-built stadium elsewhere in the town.
The suggestion provoked outrage from fans, Wrexham County Council and local representatives in both the Welsh Assembly and House of Commons.
Mr Hamilton, who ousted Mr Guterman as chairman in June this year, decided the following month to exercise the termination clause. This means that Wrexham FC could be evicted in July from the home the club has occupied for more than 100 years.
In the background, a dispute between the former business partners has resulted in Mr Guterman successfully going to court to freeze Mr Hamilton's assets in relation to the club.
There has been widespread speculation - denied by Mr Guterman - that he is now leading a consortium seeking to buy the club.
Earlier this month, Wrexham County Council also agreed in principle to open negotiations with Mr Hamilton for the purchase of the Racecourse Stadium, which is the region's biggest and most prestigious sporting venue.
CLUBS IN CRISIS
WREXHAM aren't the only club who have teetered on the brink during the past few years. Post Sport's GARETH BICKNELL looks at the other clubs who have battled for their futures.
LEEDS UNITED
AFTER chairman Peter Ridsdale left with the club in £100m of debt, the new board has reduced the crippling sum to just over £30m.
Led by Gerald Krasner, the men at the helm have sold most of last season's first team as well as the club's Thorp Arch training ground.
But now a consortium bidding to buy the club has warned the board it must sell the club or the ground, and that the consortium's £25m takeover offer is the only way it can afford to keep the Elland Road stadium.
BRIGHTON
SINCE Brighton's Goldstone Ground was sold in 1995, supporters groups have pushed for a new stadium.
Plans for a 22,000-seat arena are with the Office of the Deputy Prime Minister, which will make the final decision.
The plans alone cost the club £2.5m. Supporters fear that if the proposal is rejected the club will be doomed and are petitioning John Prescott to give the plans the go-ahead.
CHESTER CITY
CITY were considering the prospect of entering adminstration after the club was served with a winding-up order by Customs and Excise over alleged unpaid VAT in July. But the club has managed to come to an arrangement with the Inland Revenue and other creditors in order to restructure its debts.
The debts date back to before chairman Stephen Vaughan ploughed £3m into the club.
LEICESTER CITY
FACING debts of around £30m, the Foxes were taken into administration in October 2002.
Determined to save his home-town club, former Leicester and England striker Gary Lineker led a consortium which took control from the administrators.
The administrators negotiated a compromise of the club's debts - legally known as a Company Voluntary Arrangement or a "CVA" - with its creditors before selling the club to the Lineker consortium.
BRADFORD CITY
BRADFORD have had to go into administration twice after the club admitted it was £12m in the red and owed the Inland Revenue £40,000.
The club faced expulsion from the football league before creditors agreed a CVA with the administrators as part of a rescue package. Staff, playing and non-playing, agreed to a wage deferral.
In August this year, Jim Brown, chairman of Bradford's steering committee, announced the club's future was secure after the required 75% of creditors agreed to the CVA.
Pulcinello
New member
- Oct 21, 2004
- 15
Thanks for that, LB -- I see there were problems with the link I posted.
Rockin Robin
New member
Things look very bad for us at the moment,I pray we survive
Pulcinello
New member
- Oct 21, 2004
- 15