There has been some good news coming out of Truro City today.
Chairman Peter Masters explains: “I am delighted to confirm that we have now fully discharged all of the liabilities under the Company Voluntary Arrangement (CVA) dated 4th June 2013.
“As a recap, Truro City Football Club Limited (the company controlled by the former owners of the club), Oldco, went into administration on 4th September 2012, and as a consequence, the club suffered an automatic ten-point deduction from the Football Conference South (as it was then called). At this time, the club had lost control of its ground at Treyew Road and Oldco were in debt to the tune of approximately £3,900.
“In order to guarantee the club’s continued membership of the competition, the Football Conference Board issued the Administrator a deadline of 5pm on Thursday, 11th October 2012 to provide a bond of £50,000. The Football Conference held an emergency Board meeting on Friday, 12th October 2012 and agreed to extend the deadline by a further seven days until 5pm on Thursday, 18th October in order to meet their requirements.
“On 18th October 2012, the Football Conference agreed to extend the deadline until Friday, 19th October 2012 to enable paperwork to be completed with the then preferred bidder with the expectation that the bond would be released to the Football Conference that morning. The then preferred bidder pulled out of the transaction on the Friday morning. The Football Conference deadline of 12 noon passed without a bond being lodged. Discussions were ongoing between the Football Conference and the Administrator but it appeared that the club was in the process of being expelled from the competition.
“On Friday, 19th October 2012, without any prior investigation or due diligence on the Club or Truro City Football Club Limited, Philip Perryman and myself lodged a £50,000 bond with the Football Conference which saved the club from extinction.
“On 14th December 2012, Truro City Football Club 2012 Limited (a company set up by Philip and myself) purchased the business and assets of Oldco. There were a number of particularly complex issues surrounding the purchase of the club, including significant issues over the ground and what tenancy rights existed and due diligence in relation to the club and its considerable debts, including significant monies owed to the players.
“The FA Membership Committees` approved the transfer of membership from Oldco to the new company and the hard work continued in relation to seeking to pass a CVA.
“A CVA was required to be passed in order to ensure that the club could exit its administration in accordance with the Football Conference Rules and such CVA had to ensure that all creditor claims were satisfied in full over a maximum period of three years. A failure to have done so would have led to the automatic relegation of the Club by at least one Step in The National League System.
“Not surprisingly, given the off pitch problems, the club was relegated from the Conference South at the end of the season due to its league position. The simplest and cheapest route forward for us would have been to drop the CVA but this would have meant that Oldco`s creditors would not have been paid and the club would have dropped an additional league.
“We therefore proceeded with the CVA.
“After considerable effort, the total liability under the CVA to the creditors and all other costs and liabilities (and the Administrator`s legal and professional costs and expenses) were reduced to approximately £313,000.
“Whilst this remains a substantial investment from myself and Philip, it was significantly less than the reported debt of £3,900,000.
“I would like to re-thank a number of creditors who supported the club by assigning their debts under the CVA to Truro City Football Club 2012 Limited. Many of them had genuine claims for liabilities incurred by the former owners of the club, and they sacrificed these claims in order to help the Club move forward.
“The Football Conference approved and confirmed that the CVA, which had been approved by the club`s creditors on 4th June 2013, was compliant with their Rules and the club was therefore elected to the Southern League Premier Division in June 2013. This was the best possible outcome that the club could have achieved.
“Season 2013/14 was one of consolidation in the Southern League but at the end of the following season, the club was promoted back to the Conference South, re-named the National League South. That season also saw Treyew Road host Cornwall’s first ever international football game in the county, England versus Wales ESFA Under-18.
“After a relatively slow start, the club reached the National League South play-offs in the following season after finishing fourth and in doing so achieved its highest ever league position. This surpassed all expectations.
“At the start of this season, we indicated that in order to push forward and take the club to the next level, further investment was required. Whilst there were a number of interested parties, unfortunately no investment has been received and the situation remains that Philip and I continue to fund the day-to-day operating cost of TCFC which includes all of the team wages.
“The Administrator has now confirmed that all remaining liability under the CVA has been discharged. It has, at times, been a very tough and challenging four years. However, all of the old debts and liabilities of Truro City Football Club Limited have now been settled in full, which is some achievement.
“As to Treyew Road, I confirm that a Relocation Agreement remains in place with Jojo Investco Limited and Helical Bar and, those parties and Cornwall Council have also entered into a section 106 Agreement in which, amongst other things, provides that in order for there to be any development at Treyew Road, then the club must play its football next season at Treyew Road and, it must be supplied with a replacement facility to be as a minimum compliant with National Ground Grading Category A and include a 3G playing pitch, stands, clubhouse to at least the minimum floor space of the club`s existing clubhouse and car parking. Such facility must be constructed on or before 26 July 2017”.