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What Happens Next? - Ipswich Town News

Friday sees Town's creditors meet to vote on the proposed Company Voluntary Arrangement (CVA). TWTD looks at what will happen between then and the club coming out of administration.

It is highly likely that the CVA proposal will achieve the vote of 75% by value required, with most of the big creditors (the Crown, banks, bondholder) having previously met with the club and almost certainly ready to accept the plan.

There are actually three meetings on Friday morning. An administrators' creditors' meeting will be followed by creditors' and members' meetings.

The result of the creditors' vote will be given at the meetings with the club's Deloitte and Touche administrator, Nick Dargan, then sending a report on the meeting to the court. By law this has to be done within four days and may even be sent the same day as the CVA meeting.

Once the court has received the report there is a period of 28 days in which any dissatisfied creditors can appeal against the CVA. This looks unlikely to happen and even if there is a challenge it would probably be defeated.

At the end of the 28 day period, very early June in Town's case, the administrator will ask the court to discharge the order, the administration having achieved its purpose, and the management of the club will return to the board.

The transfer embargo, which has prevented the club bringing in any players since they went into administration on February 10th, will be lifted at the Football League board meeting at the end of June, on the proviso that all football debts have been met.

The club will have settled any of these which were outstanding, as this is required by the CVA. However, the Football League will still have to give permission for any deals to be done and will continue to monitor Town and other clubs in a similar situation as they implement their CVA proposals.

Similarly, Nick Dargan and Deloitte and Touche will continue to have contact with Town. The administrator will become the supervisor and will make sure the club are keeping to the proposal's terms.

Something interesting to emerge from the CVA document is that the club's valuation of the ground at £10 million is "significantly” too high, according to Deloitte and Touche.

The document also reveals the true picture of the club's debt. Recent reports have claimed the figure at £54 million, however this is not the debt but the difference between the club's assets and liabilities. The club's debt, or more correctly the potential debt should the company be wound up, is actually nearer to £70 million due to the netting off of the amount due to finance.

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