Surly though Tony we need a club to have player's to sponsor.

You cant use members money without asking of course, but Im sure most would agree if the choice was no club otherwise, what do you think?

Wrong.

Amounts owed to employees for wages, holiday pay, PILON etc, up to certain limits, are preferential creditors.

Amounts owed to directors as employees, again up to certain limits, will likewise be preferential.

Amounts owed to HMRC have not been preferential since Crown Preference was abolished a few years ago. This is the main reason why HMRC are nowdays far more aggressive when owed money by insolvent employers.

The employees get paid before HMRC. If there are any assets...

btw - be very very careful about "fraudulent preference" - paying one unsecured creditor in preference to another. If that happens, the liquidator may be able to recover the payment made since all creditors in a class have to be treated equally. That might have a bearing on what you guys seem to be on about?

Good luck people. As the chairman of our own (skint, and on a wing and a prayer) club said a year or so ago, financially the whole game is built on foundations of sand. Without a sugar daddy, most clubs are fekked.

Have we got time though Lynda?

Absolutely spot on Mo...

Bizarre a club could fold with it's supporters club trust having a positive bank balance.... Only at Leyth

Thats why I say that the people who have been funding LISA for many years should be the ones to have the say and not people like me who have only been members for 4 months. Like you say the membership has drastically risen recently.

Ste who makes the decision then to use LIsa money to pay to Vat Man?
IF LISA WAS ASKED FOR ANY MONEY WE WOULD HAVE TO HOLD AN EMERGANCY MEETING.

Thanks for that mate. I retired over 6 years ago so obviously have had no reason to keep up to date with current legislation. Our club however has no assets so it matters not really.

Whatever' we need breathing space to pay outstanding liabilities so I am still confident via negotiation we can survive so we will try. Liquidation' no club. Then no payments to anyone that is the way it is.

Agreed again but we should also have a contingency were by in such emergencies the committee are allowed to act in emergencies without the need for a vote.

Quite simply the vote tonight is do you want a club yes or no

Frank, keep on it mate, i know you and John will try your best.

YES.

Unless our creditors agree to a payment schedule it matters not.

Fwiw if it went to a vote members would vote for keeping the club afloat but as the club has no assets and LISA funds do not cover the clubs liabilities the only way forward would be a payment schedule over a period of time with creditors.

Anyone not agreeing to such a schedule would get nothing as the club would have to be liquidated. Does not mean I am not sympathetic to those owed money' just a fact.

Staff wages first etc
HMRC next as they are a prefered Creditor

ie if Smiths Smelly Socks Ltd went into liquidation then the staff, get their wages, week in hands etc, first, then the HMRC get the next call on any monies, then what is left is split equally between the rest of the Creditors.

3 Words

Everybody , calm down

Not good news , but running round in circles will achieve nothing

Tommorrow , LISA needs to be told the situation , a meeting of the committee will be called

Trevor to be at the meeting to discus the options

Time is of the essence , but we are still talking days and weeks . Not hours

One thing is for certain , next year will be very hard , let's hope we are up to the challenge

Bloody glad I decided to go to the pub earlier

Who owns a company called Smiffs Smelly Socks? You could have used Long Johns Condoms or Grapple Mi Grapes pile cream.

Surely it's up to the 'skint' directors to initially stop us from 'folding', else why be a director - unless you just like the title.

Even though i am working in the morning Ste, i wish i had come with you, i have now run out of ale.

I wish I had before I got this news... some may disagree but I wanted to put it out there and I take full responsibility for that.

It has made for an interesting evening.

I am sure you were right to put the info out. There seems to be a deafening silence from all concerned with the club and has been for weeks.

Wrong mate.

Crown Preference was abolished by the Enterprise Act 2002. HMRC is an unsecured creditor like pretty well everyone else. See my post a few posts back.

Employees ARE preferential, as I said earlier too, but there are time and value upper limits.

Don't forget creditors secured by a mortgage or other fixed charge get paid out of the realisation of their security, with any shortfall being added to unsecureds. And a landlord can still distrain on goods for unpaid rent IIRC.

Please please be careful about fraudulent preferences. HMRC will be very alive to the risk, which is why they are unlikely to accept a settlement in preference to other unsecured creditors if there is any risk of reclaim by a subsequent liquidator. Remember too that HMRC (i.e. the taxpayer...) is sick and tired of sports clubs falling over, with the only two big unsecured creditors usually being them and the owner. Its hardly surprising they are being as aggressive as they currently are in this arena.

What amuses me in all tonights ramblings is that it came from a member of the playing staff to a passionate fan who disclosed what had been said - it could all be a complete wind up and someone is laughing their cock off as I type. Goodnight Folks.

I think you have done the right thing Dave.

If the taxman has called it in then surely it is hours and not days and weeks?.

I thought the expression was 'laughing their socks off'?

I may be wrong but after the employees which you correctly state HMRC will have the luxury of secured creditor status along with the bank or banks. After that there won't be anything but bones to pick from.

Sad times indeed but as stated above let's not hit the panic button. Let's wait for official word from the club they did promise transparency and seemed to have a business plan in place so let's keep calm.

Reality is finally here we are in serious trouble but we've been here before and the challenge is there for us all to come together and grasp.

To the person who is trying to rally troops to raise cash with buckets in the town centre I pledge here and now raise a thousand pounds this weekend and my business will match it.

I also will pay up front for membership of Lisa if anyone can give me some contact details or who I need to contact etc.

Let's come together.

I've signed up tonight and will join LISA if someone can let me know how.