Dunfermline Athletic have been formally served with a winding-up order and now have eight days in which to try to prevent the business going into liquidation.
A formal notice of the order, which was served by the Court of Session on behalf of Her Majesty's Revenue and Customs, should be carried in today's Edinburgh Gazette.
Dunfermline owe £134,000 in unpaid taxes, with another £450,000 due to business creditors. The players are also owed £35,000 in wages from last month, with the March salary run of £95,000 also looming. A rescue proposal has been made by a consortium that yesterday began the due diligence process through the accountancy firm Campbell Dallas.
Little has been revealed about the consortium, which is working with the Steering Group set up by Dunfermline to try to negotiate a takeover with fan groups. However, Herald Sport understands that former Dunfermline director Craig McWhirter is involved with the group.
Their aim is to raise £250,000 to fund the purchase of Gavin Masterton's 94% shareholding. The plan is along similar lines to that proposed by The Pars Community – fans own 50% with further 10% chunks held by non-executive directors – but it is unclear if they have raised the money required.
Even if they do, Dunfermline's situation remains perilous since the stadium and training ground are owned by East End Park Ltd, part of Masterton's Charlestown House group. A commercial lease deal would need to be struck to rent the stadium and training ground, yet the CH group is itself in dire financial straits. It is also unclear what the due diligence process will reveal, and if any other potential liabilities may arise.
The Pars Community withdrew their proposal last week after Masterton missed a deadline set on the negotiations. They are, however, prepared to step in again should the club suffer an insolvency event. Herald Sport revealed last week that the Dunfermline directors were considering placing the club in administration, to stave off the threat of HMRC's winding-up order, but that would have required external funding just to tide the club over to the end of the season.
"The new group obviously understand that dealing with the taxman is a major part of what we've got to achieve, and there's no guarantees, absolutely none," said Bob Garmory of the club's sponsors, Purvis, who is also a member of the Steering Group.
"But we're not talking about carpetbaggers here, we're talking about serious investors who have the best interests of the club at heart.
"The Steering Group met with representatives of the Masterton family and it was confirmed that we were still able to work towards the model that was agreed last Wednesday, which is 100% ownership of the club – 50% owned by the fans and 50% owed by investors."
Masterton remains in Switzerland and Herald Sport also understands that he continues to seek fresh investment in the club himself. However, time is now quickly running out for Dunfermline.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article