Top Scottish football administrator Bryan Jackson reckons Caley Thistle could be out of financial trouble within weeks – if shareholders can compromise on stakes.
The former administrator of Hearts, who is months away from retiring, lined administrators up BDO with the task of saving the Highland club last October after speaking to ICT consultant Alan Savage when administration became the only realistic option due to almost £4million of debt.
A “very positive” meeting of 10 major shareholders took place at the Caledonian Stadium last week, just two days after it was confirmed liquidation was a possibility – after the deadline for potential buyers for the League One club passed on March 6 due to a range of issues.
The first was the scale of the loans from shareholders/former directors and the need to get a formal CVA (company voluntary arrangement) agreement in place, with regards how these will be paid back.
There was also concerns from interested parties over buyers being unable to easily gain control of ICT due to the club’s “disparate shareholding” and complications over land issues.
Club won’t survive if shareholders cannot agree to strike key deals
As fans wait for more developments, Jackson – restructuring consultant at Johnston Carmichael – spoke to fans’ podcast The Wyness Shuffle about what stage the process is at.
Jackson, who also led Clyde, Clydebank, Dundee, Dunfermline Athletic and Motherwell through administration, said: “Doing a deal with the shareholders to get the share that are required to sell the club and give someone a controlling interest – that’s the biggest job for the administrator at the moment.
“When it gets to whatever is offered, whatever the highest offer is, it may give 1p in the pound, or 30p, whatever it is, it would be unlikely for creditors of the club, who are mostly local people and supporters of the club, to say no, because whether they get 1p or zero, if they say no the club doesn’t survive.
“Why would you say no? It would be unusual to say no.
“The administrator will only offer what he’s offered. Whether that is a decent dividend or not a decent dividend, I would expect creditors to support a CVA.
“The shareholders’ resolution is the most important thing I can see at the moment.”
‘Timescale should not be a problem’
And when asked how soon that could advance, he added: “In terms of timescale, if you can sort all the shares out, you can quickly call a CVA – it doesn’t take long. Once the CVA is approved, you are more or less over the line.
“That could all be achieved in a matter of weeks rather than months and months.
“With willingness on all parties, the timescale should not be a problem in terms of looking to be ready for next season.
“It can be done quickly, but it does need to be done quickly now. I’m hoping the momentum from the last meeting where shareholders and creditors realised there needs to be some compromise, and people take that on board, it can be moved on quickly.
“We’re beginning to run out of time – but there is time.”
‘Frankly, a lot were not interested in the appointment’ of ICTFC
Jackson revealed he was pleased BDO took on the Caley Thistle task – because other firms felt it was too high risk.
He said: “I had been talking to Alan Savage and one or two other people at the club.
“When it got to the stage that it looked like administration could not be avoided, which is always a last resort, as any insolvency event is, then I looked to see if I could help get somebody appointed.
“Quite frankly, a lot were not interested in the appointment as they see it has high risk and reputational risk and very difficult.
“I’m glad BDO took it on – I was even a wee bit surprised because the more you see of these jobs, and the more you do, the less you want to take it on.
“A lot of people thought, with Hearts being my seventh club, I would be willing to take it on.
“But because I knew how difficult it was, I personally was not for taking it without doing any due diligence.
‘You need a little bit of luck’ with admin process
“For various reasons, my firm decided we would take a chance and take it on. But the more you do it, the more you see this is just do difficult – you need to stick your neck out taking it. You are taking a risk.
“You can do the best possible, but you need a bit of luck. I think I have been lucky. If there is no buyer there, or the parties involved will not compromise no matter what you personally do, then you can be unlucky.
“You take my last club – if Ann Budge hadn’t come along to finance it for the short-term finance required, I’m not sure I would have got that one over the line.
“We need a wee bit of luck at Inverness. People will compromise or someone will step forward with money to buy the shares to preserve the club.
“I’m sure the administrator will do everything possible. The objective is to get it over the line.”
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