They have agreement to borrow another £2 million from a firm called the Sterling Consortium, who are part owned by partners in BKR Haines Watts, for whom United's administrators David Elliott and David Walker work. The plan will pay the creditors back in full over eight months. In total United owe £1 million with the biggest creditors being the Inland Revenue, owed a total sum of £516,000 and HM Customs and Excise owed £194,000. To make the plan work though, the administrators say they need gates of 3,000 - virtually identical to last season's average of 3,204. Earlier they had issued a statement claiming crowds as low as 1,500 would be enough to satisfy the proposals. Despite little or no sales of season tickets up to now, they also expect to sell the same number as last season. With United fans voting 95% in a recent News & Star survey to boycott home games next season, the plan is already under serious doubt. The plan allows for a squad of just 20 professionals earning an average of £20,000 each - a total bill of £400,000. However the club admit any of their current threadbare squad of just sixteen - nearly half of whom are untried first-year pros - will be allowed to leave if the right offer comes in. To counter the loss of sponsorship revenues, directors Mark Knighton and Andrea Whittaker have pledged to make up any shortfall, as well as giving up their company cars. The financial cost of the deal is likely to be high. United will face an interest bill of £25,000 a month on the new loan, a figure believed to be almost double the interest payable on the existing Bristol & West loan that will be paid off in full under the new arrangements. In addition, the administrators own fees are expected to amount to £80,000. The creditors will meet on Friday August 2 to consider the proposals. This is eight days before United's opening league match against Hartlepool United. A 75% majority by debt value is needed to vote them through. If the vote is won, the administrators will remain in a supervisory capacity throughout next season to ensure debts are paid but Mark Knighton and Andrea Whittaker will return as directors. Michael Knighton's wife Rosemary could also be a contender for a director's seat when her two-year ban expires in September. If the deal is rejected, it is expected the administrators will apply to the High Court to sell the club with the most likely buyers being a consortium made up of John Courtenay and Brooks Mileson. Picture from News & Star |
