Darlington set April 30 deadline

15 February 2012 06:17

Darlington's administrator Harvey Madden has told the Blue Square Bet Premier club it has until April 30 to raise £750,000 in order to exit administration.

The Quakers, who entered administration for the third time in nine years in January, intend to raise the majority of funds by a share issue after fans formed the company Darlington FC 1883 Ltd.

The club will sell the shares for £100 each, released in three blocks of 2500, with the first block protected so that buyers would be reimbursed if an initial £250,000 is not raised. Madden said: "It will basically be a small investment times a lot of members equals the funds needed to go forward for the football club."

If the funds are raised by the deadline, the club's creditors would then vote on a Company Voluntary Agreement (CVA) before administration could be formally exited, with Madden revealing that £600,000 would be enough to make the club viable.

He added: "We've got [former chairman and creditor] Raj Singh's support, who apart from being a creditor is willing to support this through.

"So one assumes therefore he will vote in favour of the CVA and one is mindful he will allow us to continue."

Speaking at a press conference, he added: "We have been here (in administration) three times before - I am the third guy sat here and I hope I am the last.

"A Financial Services Authority registered company called Crowdcube, which is in the business of financing crowd-funding platform to raise equity, will be involved in this."

On January 18, Madden told players Darlington no longer existed but they were dramatically saved by a late intervention from fans.

Source: PA