Hatters face further penalty
14 May 2008 - 13:42:26
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- Hatters face further penalty
Luton Town are set to start life in League Two next season with a 15-point penalty for failing to exit administration via a Creditors Voluntary Agreement.
The Hatters will fall foul of the ruling which saw Leeds United docked 15 points just under a year ago, having failed to settle its debt with a majority of its creditors.
A statement from the LTFC2020 consortium which has taken charge at Kenilworth Road read: "We were selected as the preferred bidder in January, but were advised by the Football League that their priority was to resolve the Leeds United situation.
"We were the only club in administration at that time, but with other clubs in financial trouble, it was felt important to decide on a penalty for not agreeing a CVA.
"Our CVA was rejected in April. Following the rejection of the CVA, LTFC2020 has made our application to the Football League to exit administration without a CVA under their 'exceptional circumstances' procedure.
"This was the procedure followed by Leeds United and resulted in a further 15-point deduction for them.
"Our completed application reached the Football League before the verdict of the arbitration panel into the Leeds case was announced.
"Consequently we are now liaising with the Football League on the final stages of exiting the administration process."