Friday, 22 February 2013
Salford City Reds seek Company Voluntary Arrangement
Salford City Reds, the Super League rugby club, have said they will try and enter into a company voluntary arrangement in order to pay back its creditors in full over a five year period. A 100p in the £1 is always popular with creditors so if successful would be a much better alternative to administration.
One main creditor Salford City Council that part owns the stadium will be paid off over a longer time period if the CVA is approved
As always this is an example of trying to do a deal. It is not usual that some creditors agree to a longer period to be paid back but in the case of the council they perhaps felt there were other benefits to keeping the Reds going... The council had already invested around £1.5m in the club.
The Reds have lost their first three matches of the 2013 season and lie bottom of Super League.