Reynolds Skips Court Case

Darlington have been warned that they are closer too disaster than ever as the bankruptcy case against Reynolds was adjourned. The warning has come from the administrators for the club after Reynolds vowed to fight the bankruptcy proceedings bought against him by the Sterling group.

The former chairman was not in court however he was represented by his barrister who stated that Reynolds would contest despite saying in local newspapers that he was better off bankrupt. The case however was adjourned and this pushes Quakers closer to the edge.

Sterling want Reynolds bankrupt so they can take over the club however the adjournment of the case puts the club in serious danger of liquidation. Next week is the deadline for a workable solution to be found and if one can not be discovered then Darlington faces liquidation.

The deadline was set by the Inland revenue who themselves are owed £460,000. While a deal has been made to keep the club going till the end of the season and fulfil it's remaining fixtures the current events make it look likely that Quakers would have little chance after the final game. Sterling are still interested in buying the club but Reynolds will veto any deal they offer unless they improve their offer which means time is running out for the club.

Speaking to the Northern Echo Mr Field said: "If a week from now there is no change, we will either put out a voluntary arrangement anyway, knowing it will be rejected, or we will go back to the court and say we have done all we can - the administration is at an end."

The deadline could be extended if a deal was close to being agreed but that is not the case at the moment and Mr Field has warned that the next week is vital for the club. In fact with Sterling attempting to bankrupt Reynolds the two parties could possibly be even further away from a agreement. Reynolds' barrister said;

"All I can tell you is that there was an application for bankruptcy made by the Sterling Consortium. That application was fiercely contested and the result was that the matter is going to be adjourned to a later date, possibly to the High Court in Newcastle. We will continue to fiercely contest this matter."

The administrators for the club have until the 22nd to submit a voluntary agreement to the creditors or the club sold. If either of these has not happened the club will be wound up. The club will fulfil its fixtures to the end of the season. If an agreement has been reached with creditors by that time, the football league will be asked to approve the transfer of the club's share to new owners. If an agreement has not been reached by the end of the season, we will advise creditors that an agreement has not been able to be achieved, and will report to Court that the administration is over, but that will not take place until after the end of the season.

Source: The-Tinshed.net

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