The admin rules since Summer 2015 - (Applies to any event which provides
protection from creditors).
Insolvency
Clubs have approved changes to the League’s Insolvency Policy - under which
it manages any club that suffers an insolvency event - with the aim of
strengthening a number of its key principles, while maintaining a ‘rescue
culture’ that gives clubs the opportunity to restructure their financial
affairs and continue in league football.
Going forward, any club that goes into Administration will suffer an
immediate 12 point Sporting Sanction, an increase on the current 10 point
penalty.
Once appointed, the Administrator will be required to market the club for at
least 21 days during which time he/she will be required to meet with the
club's supporters’ trust and provide it with the opportunity to bid for the
club.
The League has removed the requirement for the purchaser to achieve a
Company Voluntary Arrangement (CVA) meaning that it will transfer the club's
share in The Football League to the Administrator's preferred bidder subject
to their compliance with the League's other requirements.
It is anticipated that this will reduce the insolvency period and the
associated professional costs, as well as providing greater certainty that
the club will continue, thereby delivering a greater return to creditors.
It will also prevent the Administration process being controlled by the club’s
previous owner who in some instances will be the only party able to achieve
a CVA. Again, it is expected that this will deliver a better return for
creditors by increasing the number of potential purchasers.
On exit, the purchaser will be required to pay creditors a minimum of 35
pence in the pound over 3 years (or 25 pence on transfer of share) or face a
further 15 point deduction at the start of the season following the
insolvency event.
Read more at http://www.football-...3HV1xESq9Euf.99
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