The Voluntary Administrators of FFC, Paul Burness and Con Kokkinos of Worrells Solvency and Forensic Accountants, have now finalised their formal report and have called a meeting of all FFC’s creditors for the morning of 3 October 2016. At that meeting, the fate of FFC will be decided by the club’s creditors.
The board of FFC have proposed an offer (known as a Deed of Company Arrangement) for creditors to consider at that meeting. The offer, if accepted, would see the club continue into the future and the employees, coaching staff and players would be paid in full; whilst ordinary unsecured creditors would see only a partial return on their debts. Under the proposal, payments to creditors would be made over a 4-year period.
Mr Burness said: “At the coming meeting creditors will effectively have two real options: they can vote to accept the proposal put forward by the board, or they can vote to place the club into Liquidation.”
On the Administrators’ assessment, a liquidation of the club was unlikely to yield sufficient recoveries to allow the payment of any portion of the ordinary unsecured creditors’ claims. A liquidation would also mean the closure of the club.
The Administrators had recommended that creditors accept the proposal as it is expected to provide a better monetary return to creditors.
Mr Burness also stated: “Our recommendation that creditors accept the proposal is contingent on AFL Victoria agreeing to allow the club to compete in the VFL competition going forward.”
At this time AFL Victoria have provided no firm commitment as to whether they will allow FFC to compete in the 2017 VFL season, even if the board’s proposal was to be accepted.
In their report the Administrators outlined that they had received overwhelming indications of support from the coaching staff, players, employees, members, supporters and sponsors. This included several offers for financial assistance should the club continue as a going concern. It was also noted that the Frankston City Council had indicated a willingness to provide the club with rent relief should it continue into the future.
For interviews and/or comments please contact:
Paul Burness, Partner, Worrells Melbourne
03 9613 5510 / 0417 031 831