Source: Bournemouth_Echo
Cherries: Mitchell submits final liquidation payment
CHAIRMAN Eddie Mitchell insists Cherries are closing in on a debt free existence after moving to complete the club's liquidation payments.[LNB] Mitchell confirmed that a cheque was sent to Gerald Krasner on Friday for the last of Cherries' instalments to creditors of the old company, as part of a liquidation agreement that is often incorrectly referred to as a CVA.[LNB] He said the club had the necessary funds in place to cover the payment and that it was a done deal.[LNB] Mitchell revealed he was now working towards mopping up other outstanding liabilities, including backdated rent to landlords Structadene.[LNB] The Dean Court chief insisted the liquidation payment was a big milestone for Cherries and told the Echo: It was a long way off getting cleared (when we took over) so we're very pleased we've been able to do it in just over a year.[LNB] It's something I wasn't personally connected with at all and it's just nice to be able to get nearer to the club trading on a fair wicket without anything dragging it backwards.[LNB] There's still a few other things to overcome but it's just one of them and it's quite a major one.[LNB] I think it's good news for the club and it will be nice for supporters to know we're still making progress in the right direction.[LNB] We're longing for the day that we can actually say we're debt free and I don't think it's that far away.[LNB] I think the board's dedication to go in one direction together, not split and arguing, is a key factor, along with the success we've had with the promotion and the fans' loyalty.[LNB] It's all starting to trickle in the right direction.[LNB] Asked what issues were next on the agenda, he added: We want to address the backdated rent we owe that's the next major one to address.[LNB] It's fantastic that we've had a landlord that's been patient with us for this length of time.[LNB] That is the next goal, along with keeping ourselves ahead of the tax and VAT and everything else which comes with running the club.[LNB] Once the final liquidation payment clears, Cherries will have paid the £500,000 they were instructed to give to unsecured creditors as one of the conditions for the club coming out of administration in August 2008.[LNB] It was one of the principle terms outlined in a formal agreement offering the club the return of its right to retain membership to the Football League.[LNB] Krasner, who oversaw the club's administration between February 2008 and August 2008, is supervisor of the liquidation in his capacity as administrator.[LNB] He confirmed he had received a cheque for the final balance and added: It's the final instalment due to the liquidators under the arrangement when the football share was transferred.[LNB]
