Chester City FC faces one of its most important days in the history of the club today as it meets with Refresh Recovery, the administrators currently managing the club’s financial situation.
Stephen Vaughan chose to put Chester City FC into voluntary administration on 17th May when relegation became confirmed.
The meeting between Chester City FC and Refresh Recovery is due to take place at 11am today at the Deva Stadium to discuss the severity of debts, creditors and any offers received to buy the club.
It has been suggested that Chester City FC’s debts may be more than £7 million.
It is though that at today’s meeting Stephen Vaughan will try to buy back Chester City FC as a limited company. A limited company deal would mean that any future responsibility of a slide into insolvency would fall to the shareholders but only to the limit of their original investment.
With Stephen Vaughan already in place as the major shareholder and creditor he has loans of £4 million. In this step to buy back Chester City FC he is offering to surrender monies owed to him in a bid to save the club.
If Refresh Recovery accept this Company Voluntary Agreement (CVA) Chester City FC then faces the Football Conference AGM on Saturday 13th June. At this meeting it will be confirmed whether they will be accepted into the Conference League for next season.
For full details of the offer to be made read more at Chester Chronicle whilst we wait with baited breath for the result of today’s meeting between the creditors and Chester City FC.