Reynolds Off The Hook - No Legal Action

George Reynolds will not be facing legal action over the failure of Darlington football club directors to produce required documents. A deadline was given by administrators for the documents to be bought forward, initially it was set to the 5th, but was then extended to the 22nd due to the Christmas period.

However the documents have not been forthcoming and the administrators have had to issue details of the finical mess to possible buyers from information they have gathered themselves. It is a legal requirement for these documents to be bought forward however it is likely no action will be taken in this case.

Joint administrator David Field said speaking to the Northern Echo: "As far as the other directors are concerned, they have not been involved in the day-to-day financial running of the company. We accept that they don't know enough to tell us, so that is the end of their responsibility. Mr Reynolds has had the main control of the financial side and we will mention in our report that he has not submitted a statement of affairs."

He went on to say that this was not a serious breech and normally legal proceedings would not be made. However the administrators may still take legal action against George Reynolds for failing to comply with a legal agreement to meet any shortfalls incurred while the club is were in administration. Reynolds has strongly denied signing any such guarantee.

Despite this possible broken agreement administrator Mr Field, did not rule out Reynolds buying the club back, a move which would infuriate fans of the club. "I am aware that Mr Reynolds is wanting to, for want of a better phrase, buy it back," he said. "I wouldn't be at all surprised if he wanted to do something, whether himself or through someone else."

Administrators are working on the assumption that creditors will accept 10p for every £1 that they are owed. However Reynolds claims he is owed £14 million pounds and will not walk away for with just a tenth of what he had put in. The administrator is still looking into this claim, however if it true Reynolds could block any proposal put forward to other creditors.

Source: The-Tinshed.net

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