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Farsley Celtic: Future of club in fresh doubt
Farsley Celtic's future has been thrown into fresh doubt - just weeks after the troubled football club appeared to have won its fight for survival.
Farsley Today reported how the club were hours away from going out of business in early September, following a two-month spell in administration.
* Click here for Farsley Celtic Clockwatch.
Celtic president John Palmer then seemed to have saved the day with a last-minute rescue package that was provisionally accepted by the Blue Square North side's administrator, accountancy firm Mazars.
But now it has emerged that HM Revenue and Customs (HMRC) - Farsley's principal creditor - is unhappy with the proposal that would formally bring the 101-year-old club out of administration.
* Click here for more Farsley Celtic news.
Under the terms of the proposed deal - a type of insolvency procedure known as a Company Voluntary Arrangement (CVA) - HMRC would receive only a proportion of the money it is owed.
So-called 'football creditors' - such as players and other clubs - would, however, be paid in full.
As a result, HMRC is refusing to support the CVA - and its status as principal creditor means the deal cannot go through without its backing.
That in turn leaves Celtic at risk of breaking a league rule which stipulates clubs leaving administration must do so via a CVA.
Mazars is now due to discuss Celtic's future with the Football Conference, which runs Blue Square North.
Conference general manager Dennis Strudwick confirmed that failure to exit administration via a CVA could theoretically render a club ineligible for its competitions.
But he also stressed no decision on Farsley's continued participation in Blue Square North would be taken before talks with Mazars.
A Celtic spokesman said the club was still taking stock of the taxman's newly-revealed opposition to the CVA.
He also said the club's game at Redditch tomorrow (Sat) was due to go ahead as planned.
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Wednesday 08 February 2012
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