Debt-ridden Gretna could fold in eight days
Last updated 08:56, Friday, 09 May 2008
Crisis club Gretna face a winding up order in eight days’ time unless a buyer comes forward to rescue the debt-ridden club.
Furious creditors, who are claiming nearly £4million, yesterday attended a stormy meeting with the administrators controlling the affairs of the stricken club which is on the brink of closure after owner Brooks Mileson withdrew his backing following an illness.
Gretna complete their turbulent SPL campaign with a game against Hearts at Fir Park on Tuesday night and unless administrators receive a bid from a potential new owner by tomorrow week, that will be their last-ever game.
At a press conference in Gretna Green yesterday, joint administrator David Elliot spelled out the bleak scenario facing the 2006 Scottish Cup finalists, who are also facing possible allegations of wrongful trading.
If the club is found guilty of wrongful trading, directors could be liable for some debts if it is proved they knew that the club was insolvent or heading towards insolvency.
Former manager Rowan Alexander and ex-player David Bingham were among the individuals and companies who attended the creditors’ meeting.
Mr Elliot revealed there are four potential buyers interested in taking over the club, which travels to St Mirren tomorrow.
Mr Elliott said: “We are in dire straits and these potential parties who have expressed an interest need to get on with it. I’m hopeful one will come forward.
“The proposal I put to creditors is that we continue to play football until the end of the season while we seek a buyer.
“There are four interested parties and I would like to remain hopeful that one will come through.
“We are in funds until May 17 and at that point we stop. If we haven’t completed a deal, we would move to wind up the affairs of the club.”
Furious creditors emerged from the meeting to demand an explanation on the club’s demise from Mileson, who is also claiming £1.8million.
No one has seen or heard from the Carlisle-based businessman, who is said by his family to be recovering from an illness he suffered just before the club was placed into administration.
Former striker David Bingham, a member of their Division Two and Division Three championship-winning team who was made redundant by the club last month, claims he is still owed a “substantial” amount.
Bingham said: “There is one man who could help if he could just come forward and explain. There are a lot of people who are due an explanation.
“Mr Mileson is ill, which is fair enough but there are a lot of people with families and mortgages who are relying on him.
“Creditors are due a lot of money and the least they deserve is an explanation.”
Dumfries civil engineer Alastair Barron, whose firm is claiming nearly £100,000 in unpaid work on plans to rebuild Raydale Park, criticised Mileson for not appearing at the creditors’ meeting.
He said: “It would have been quite nice if Brooks Mileson had come along and explained why he has pulled the plug.
“No one seems to know why he suddenly withdrew funding, and the administrator says he has not been able to get in touch with him.
“We drew up the plans for the redevelopment of Raydale Park and got planning permission for that. We also did initial work on the eco-stadium.
“We had a meeting up at the Scottish Parliament about it and I haven’t seen Brooks since - he just seemed to vanish.
“We have invoices for £93,000 outstanding plus VAT.”
