Administration hit Inverness Caley Thistle announce 3 possible investors as 5 players go but £500,000 Alan Savage pledge saves non-playing staff
Three potential new investors have expressed interest in bidding for Caley Thistle since administrators swept into the club on Tuesday.
The escalation of interest in buying or investing in the troubled 30-year-old Highland club came within 48 hours of the insolvency process kicking in.
No details of the parties were given as administrators BDO addressed the media for the first time, with all involved signing legally-binding non-disclosure agreements.
Five first team players were offloaded as the club sought to slash costs, joining manager Duncan Ferguson and his two coaches who were axed the day before.
But in a major morale boost to the insolvent League One outfit, the jobs of every one of the club’s non-playing staff were spared by James Stephen of Glasgow head-quartered administrators BDO.
That was made possible by Caley Thistle’s financial consultant Alan Savage pledging to fund the club with up to another £500,000 until the administration process is completed.
Past chairman Mr Savage rejoins the board as director with immediate effect.
The lack of non-playing job losses was also a reflection of BDO’s commitment to “keeping the team competitive” and challenging to stay in the division, Mr Stephen said.
He made it clear his overriding priority now was to find a buyer for Caley Thistle and strike an agreement with creditors owed around £3.6 million by the club.
BDO has now established a data room where potential buyers or investors can gain access to the club’s full financial information in order to do their due diligence on any bid.
Mr Stephen said: “We have already had three expressions of interest. We're following up on that. We won't discuss bidders … until we're at a point to do so with their consent.”
To boost efforts to fund the club through the administration process, the club will relaunch a crowdfunder that raised over £80,000 this month.
Mr Stephen, a liquidator of Rangers and administrator of Hearts during those two clubs’ respective troubles, stressed: “Alan Savage has very kindly agreed to assist with the administration funding. We have asked Alan to come back on the board with a view to seeing where we can increase revenues.
"But we are looking to local communities to rally round the club and support us as much as we can. Every penny we can raise … will be used to keep the club going.
"(The) period of stability allows me to move forward with the sales process, which has already started.
"The key objective is to exit via a company voluntary arrangement (CVA).”
On a dramatic day for the 2015 Scottish Cup winners and past Europa League qualifiers, Mr Stephen made it clear Mr Savage’s pledge had spared harsher job cuts.
He said: “It's clearly a difficult time for the club, its staff and the city.
"It has achieved a lot in its short history. The main aim is to preserve the football club going forward.
“(The lighter than expected job losses) is a combination of Alan Savage’s ongoing commitment to bankroll the club and also about keeping a squad together that has the remnants of being able to compete.”
Asked about the forensic nature and extent of financial investigations into how the club became so debt-laden, Mr Stephen was asked if his remit would cover any financial impropriety.
He responded: “There will be an examination of what's happened in the period before my appointment.
"If there are transactions that require investigations that potentially need action, then that is a possibility.”
Mr Savage, outlining his renewed commitment after pumping in £350,000 already, is ready to fund administration to the tune of another £500,000.
He said: “We want to bring certainty to the club. And we want to complete the fixtures for the season.
I’m just showing a complete commitment to drive the club forward under the stewardship of James.
“(Could you take it on yourself?) I wouldn’t rule anything out.”
