Chester City: Next 72 hours to decide the fate of the Blues

Jun 11 2009 Chester Chronicle

CRISIS-HIT Chester City are facing up to the most important three days in their long history.

A make-or-break series of meetings over the next 72 hours will determine whether the Blues will exit administration and take their place in the Blue Square Premier next season – or whether they go to the wall.

The most important meeting takes place at the Deva Stadium this morning.

Administrators Refresh Recovery Limited will present a Company Voluntary Arrangement (CVA) to the club’s creditors which they say can save Chester from liquidation and see major shareholder and creditor Stephen Vaughan return to the helm.

City need the CVA to be passed to come out of administration and be accepted into the Football Conference.

The Chronicle understands the proposed CVA will be passed.

A specially arranged meeting of Conference bosses is being held tomorrow to discuss the plight of the Blues before deciding whether to accept them into the league at its AGM on Saturday.

If Chester are accepted, they will start the 2009-10 Blue Square Premier campaign with a 10-point deduction.

Denis Strudwick, general manager for the Conference, said: “Chester City are not a member of the Conference yet so we cannot comment on speculation.

“We do have a promotion-relegation agreement with the Football League and therefore we’re trying to be positive and taking Chester City as part and parcel of that agreement.

“But until we hear what happens on Thursday we cannot comment further.”

The company behind the Blues, Chester City Football Club Limited, owe in excess of £7m and is beyond saving.

Administrators Refresh Recovery have accepted a bid of £290,000 from Chester City Football Club 2004 Limited.

Vaughan, who placed City into administration last month following their relegation out of the Football League, is the man behind the bid.

He is willing to waive the £4m owed to him under the proposed CVA, while the creditors who claim dividends will receive 15p in the pound over a four-year period.

If the CVA is passed, creditors who oppose the decision have 28 days to appeal.

A CVA requires the approval of in excess of 75% in value of those creditors voting on the resolution.

City are attempting to continue life as normal by confirming five pre-season friendlies – the most high-profile of which is a visit of Premier League new boys Burnley.

Owen Coyle’s side will be on parade at the Deva Stadium on Thursday, July 30.

The Blues will make their way to Marine on Saturday, July 18, Nantwich Town on Tuesday, July 21, AFC Telford United on Saturday, July 25 and Droylsden on Saturday, August 1.

Dr Mike Swallow – tributes to a club stalwart. See page 70.