April 15 – Scottish League One club Dumbarton FC are set to exit insolvency proceedings following a deal struck by administrators Quantuma with Gareth Phillips of the Pendragon Group.
Dumbarton have already suffered a 15 point deduction that will see them relegated to the Scottish fourth tier at the end of the season, but Quantuma said the new deal will wipe out debt, ensure all creditors are paid in full and provide cash flow to support the club for three years.
Quantuma had been in litigation with real estate business Pendragon Group, owned by Phillips.
Last November the club brought in Quantuma who said insolvency was the result of non-receipt of “significant” funds owed from the sale of land in 2021.
Club accounts to May 31, 2023, show that the club was due to receive gross proceeds of £1,848,000 from the sale of land to a related party.
As part of the agreement the litigation against Pendragon will be dropped.
“The full terms of the proposal are subject to confidential negotiations, however as part of the proposal, the litigation with Pendragon would be concluded on the basis Pendragon would not hold security over the club’s assets,” said Quantuma.
“Mr. Phillips would introduce sufficient funding to stabilise the trading of the club going forward and the administrators are required to be satisfied that there is security for cash flow and a business plan to provide support for the Club for the next three seasons.
“A non-refundable deposit has been received by the administrators which will cover any short-term trading shortfall whilst the transaction is being negotiated, until the target completion date in early May.”
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