What will the timeline for the administration process at Caley Thistle look like?
The administration process has started at Inverness Caledonian Thistle as BDO have began work attempting to find a way to salvage a future for the club.
Leaked documents obtained by the Inverness Courier called Operation Kessock showed a 12-week timeline which BDO hoped to complete the administration process.
It wrote a proposed strategy and timeline that is assumed the administration is exited via a Company Voluntary Arrangement (CVA).
However, it could be impacted by an extended administration period due to diligence demands of potential purchaser and license issues with the football authorities.
On the document’s timeline, the pre-planning week was expected to take two weeks.
Its bullet points included as followed.
• Review of existing cashflow projections.
• Agreed reduction in costs base.
• Liaising with football authorities and the Players Football Association (“PFA”).
• Preparation of administration cashflow forecasts to ensure funding requirements can be met to cover any trading shortfall and the costs of the administration.
• Assessment of potential creditor voting in CVA.
• Media communication strategy agreed.
• Drafting of sales memorandum and non disclosure agreements.
• Selection of appropriate lawyers for legal advice.
• Consider whether Financial Conduct Authority.
(‘FCA’) notice is required prior to appointment.
The administration appointment period is expected to take around five weeks. During the period, it included the following bulletpoints.
• Immediate redundancies upon appointment.
• Proceed with sales process.
- Engagement with interested parties.
- Data room set up and coordination of any due diligence work.
- Ongoing dialogue with relevant authorities.
- Closing date for bids.
- Preferred bidder appointed.
- Approval from football authorities re: “fit and proper” test.
- Please note this period may extend depending on demands of interested parties.
• Draft sale and purchase contract agreed.
• CVA proposals drafted.
If successful, it is then hoped a company voluntary agreement process will be arranged and take three weeks.
The bulletpoints during that period include.
• Company Voluntary Agreement proposal finalised.
• Meeting of creditors and shareholders convened on 14 days notice.
• If 75 per cent + threshold is met, then CVA approval gained and company exits administration.
• Please note creditors have 28 days to object to CVA.
• It will become apparent during the proposal and voting period whether a challenge is a likelihood.
• In BDO’s experience challenges to an approved CVA are rare.
