BDO Statement - club at “Significant Risk”

[Charles Bannerman]

This is not looking good. The attempt to achieve surrender of shares (Dated March 13th) appears to be a response to there being no offer by March 6th.
 

Date:
17 March 2025
Subject:
Statement by Joint Administrators of Inverness Caledonian Thistle FC

STATEMENT BY JOINT ADMINISTRATORS OF
INVERNESS CALEDONIAN THISTLE FC

Despite a strong level of interest from several parties, the Joint Administrators (JAs) of Inverness Caledonian Thistle FC (ICT) are disappointed to confirm that no offers were received for the club by the deadline of 5pm on Thursday 6 March 2025.
Feedback from interested parties highlighted three concerns.
Firstly, as any transaction would include the use of a Company Voluntary Arrangement (CVA) to compromise ICT’s debt, interested parties expressed concern re the current level of loans (circa £3.5 million) from former directors of ICT (the Loan Creditors). A CVA requires 75% or more of creditors voting in favour. Interested Parties indicated agreeing any sale and purchase agreement was problematic as a number of loan creditors were at a value where they could veto a CVA proposal.
Secondly, the nature of the club’s disparate shareholdings is impacting the ability of a potential acquiror to have adequate control.
And finally, the uncertainties stemming from the ownership of land surrounding the stadium.
While the JAs are continuing to work towards a resolution, which would include a transaction and CVA to allow the club to exit the Administration free from historical debts and retain its status in the Scottish Professional Football League (SPFL), a sale transaction does not appear to be achievable in the absence of new parties coming forward and the future of the club is now at significant risk.
The JAs are continuing to work to seek resolution to these issues.
Prior to the JAs’ appointment in the summer of 2024, the Loan Creditors had agreed to write off their loans. The JAs have written to the relevant former directors requesting that they now fulfil their agreement. Some have agreed, others are pending. The JAs remain hopeful that this issue can be resolved shortly. 
To address the concern about the nature of the disparate shareholding, the JAs have also written to a number of material shareholders setting out the position and requesting that their shares are returned to the club, or the potential acquiror, at no cost. Further letters will be issued this week. A number have agreed to this request and the JAs hope that this issue can also be resolved.
The JAs have also approached Alan Savage, former club Chair, to ascertain if he could be prepared to support the club on an ongoing basis. Mr Savage has provided support to ICT in administration and has ensured funding is in place for the club to complete the 24/25 season. His commitment since the summer of 2024 until the end of the season will be circa £1million.
Mr Savage has indicated he would be prepared to provide the following level of support to enable the survival of the club:
• Provide 25% of the acquisition price of the club, and
• 25% of the funding requirements for the next two seasons after 24/25.
This funding would be based on prepared budgets, with cost controls in place. Any deal Mr Savage would support will also require the resolution of the issues outlined. If an acceptable offer is put forward, the JAs hope to present a CVA to the creditors for their consideration with a meeting of creditors to take place by the end of April. 
A BDO spokesperson said: “We appreciate that this latest update will be disappointing for players, fans and the wider community.
“Given what has been achieved both on and off the pitch throughout the Administration period, we would very much like to see a sale of the club to ensure that its future is secured and we would encourage all parties to cooperate in this endeavour.
“We are grateful for Alan Savage’s ongoing financial support and would urge any interested parties to come forward with a view to acquire the club. The JAs would welcome the opportunity to discuss and provide a guide in respect of an acceptable price.”
ENDS

[Yngwie]

Oh dear, this is not good. It’s also a bit of a surprise given the previous updates which were relatively positive, and the obstacles to a sale that the Administrators cite are not new news, they were issues that everybody knew would be problematic before administration even started.

It now seems clearer than ever that the club will cease to exist unless there is significant movement from key figures.

[+Northern_jaggie]

The letter from the JA’s goes to show how much Alan Savage has done, and possibly will do, to help keep us afloat. What a shame (for all concerned) if we have to liquidate after all this. 
 

A gutting update. 

[The Hammer]

This is a real dose of "reality" after the last updates from BDO which seemed relatively positive.

It seems to me that the ball is firmly in the court of the shareholders/former directors concerned and the fate of the club is extremely reliant upon them playing ball to enable a new owener to take control.

Depressing news.

[IcyT]

It's a pretty poor paragraph suggesting that new parties need to be found.  That would appear not to be correct if the concerns raised are actually addressed, including the write-off of loans, for example.  That would not be a case of starting the whole thing again.  It's surprising that no attempt seem to have been made by the JAs re the write-off of loans before now, though!

[RiG]

Somewhat ironic that Morrison, Cameron et al are now concerned about handing over the club to a safe pair of hands when they tried to flog it to Ketan f'cking Makwana. 

[+snorbens_caleyman]

8 minutes ago, RiG said:

Somewhat ironic that Morrison, Cameron et al are now concerned about handing over the club to a safe pair of hands when they tried to flog it to Ketan f'cking Makwana. 

Funnily enough, I was just checking to see if there was any recent news from or about him, in case he's making another attempt.  I couldn't see anything.

If a new owner emerges, it will become public knowledge who they are.  I can see why potential buyers wouldn't want their identities splashed in public until a deal is struck.  But I would have thought that, with appropriate NDAs in place, their identities could and probably should be available to the major creditors and major shareholders, who are not necessarily the same people. 

Are there any reasons why not?

[Council Juice]

This is so depressing. Particularly given how well the team have performed on the pitch in spite of all of this.

Cmon Polvsen show us the money! Pocket change for you lad.

[tm4tj]

Locking this topic now as there is nothing said on here that is not on the other Admin Topic

HERE