Bury Handed 12 Point Deduction After CVA Agreed

Bury Handed 12 Point Deduction After CVA Agreed  - FootyNews.co.uk
BURY, ENGLAND – APRIL 14: Bury chairman Stewart Day looks on prior to the Sky Bet League One match between Bury and Northampton Town at Gigg Lane on April 14, 2018 in Bury, England. (Photo by Pete Norton/Getty Images)

League One Bury were yesterday handed a 12 point penalty for breaching English Football League insolvency rules. The points deduction will be in effect for the coming season, meaning the Shakers will begin their League One campaign on minus 12 points.

A Company Voluntary Agreement (CVA) was agreed on Thursday morning. However, a CVA qualifies as an “insolvency event” under EFL rules which meant a points deduction. Bury have seven days to appeal.

Bury Handed 12 Point Deduction

The result of the agreement means that the club can clear some of their debts. 25% of the money owed will be paid to unsecured creditors, including HMRC.

CVA nominee Steven Wiseglass, a director at Inquesta Corporate Recovery & Insolvency, said: “The agreement means the club avoids going into administration or liquidation, and it provides a degree of financial certainty in that its historic debts will be dealt with.”

Bury Owner: “Club is Safe”

Bury owner Steve Dale released a statement on the club’s website.

“Today was a major day for our beloved Club, the old girl is safe. The CVA was passed so our future is secured as I said I would.”

“We have worked tirelessly to achieve the result today whilst taking a lot of flak, some might say our methods were questionable but we can all pass comment with hindsight, my job was to save Bury FC and that’s done, we have other hurdles but the main one is complete.”

The Near Future

Mr Dale also added that 27 players were in training and that there is a “reasonable prospect of change in ownership”.

Although the Shakers lost last seasons manager, assistant and vice-captain, ex Everton striker Paul Wilkinson has been brought in as the new manager. “Bury is a club with a great history and I can’t wait to get started. I’m determined to drive the club forward in the right direction.”

Wilkinson has a tough job on his hands. The Shakers will join Bolton Wanderers, who have also been given a points reduction, at the foot of League One for the foreseeable future. The club are also due in court at the end of this month. A winding-up petition brought by HM Revenue & Customs over an unpaid tax bill was adjourned for a third time.