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The requirement for the purchaser to achieve a Company Voluntary Arrangement (CVA) has been removed. This means the club’s share in the Football League will be transferred to the Administrator’s preferred bidder, subject to their compliance with the League’s other requirements.
The League anticipates this change will provide greater certainty the club will be able to continue, as well as reduce the insolvency period and associated professional costs. It will also prevent the club’s previous owner controlling the administration process, as in some cases they may be the only party able to achieve a CVA.
The purchaser will be required, on exit, to pay a minimum of 35 pence in the pound over three years (or 25 on transfer of share) to creditors, or face a further deduction of 15 points at the start of the season after the insolvency event.
Source: Press Release: Football League clubs focus on the future
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