Further to the news that Ebbsfleet United shareholder and MyFootball Club representatives have entered into negotiations with KEH Sports Limited (KSL) comes more detailed information regarding the KSL offer. This information was earlier published on MyFootballClub’s website and the parties involved have waived confidentiality in order that all supporters may be kept informed of the situation. There also follows an open letter from KSL’s Peter Varney. Statement follows:
“You will all be aware that Ebbsfleet United FC faces a very uncertain future following relegation. The Club has had to withhold paying players and staff to ensure that HMRC payments are made up to date.
The Club also faces a threat of a winding up action from the administrator of Fleet Leisure Limited scheduled to be heard in the High Court on 6th June 2013.
The board of directors of Ebbsfleet United FC have received an offer for the shares in the Club from the Kuwaiti based KEH Sports Ltd. A summary of the offer and the contractual commitment that KEH will make to invest in the Club is set out below:
OFFER BY KEH SPORTS LTD (KSL)
The principal terms of the offer are:-
- KSL to pay £10,000 for the entire issued share capital of the Club, to be distributed pro rata to all shareholders
- This would result in £7,500 being paid to MyFootballClub.co.uk for application under its constitutional rules
- KSL to pay an aggregate sum of £41,900 to settle all loans owed by the Club to directors, shareholders and third parties.
- The total indebtedness of the Club is £419,000 and this represents a return of 10p in the pound. The balance of such loans is to be fully written off by the respective lenders and any security granted by the club in favour of any lender over its assets and/or shares is to be released in full.
- MyFootballClub.co.uk has a total of £139,000 outstanding to it from the Club, so a sum of £13,900 will be allocated as repayment for this and the rest will be written off.
- KSL will invest capital/equity (not loans) in the Club to fund the following:
– all unpaid ordinary trade creditors in full up to £100,000;
– a transfer budget for season 2013/14 of £100,000;
– a minimum playing squad budget for seasons 2013/14 and 2014/15 of £8k per week.
- in addition, KSL will submit a planning application for a stadium development and will initially commit to the construction of one stand.
This offer is a final offer and is not subject to further negotiation.”
[symple_button color=”blue” url=”http://www.ebbsfleetunited.co.uk/home/?p=8956″ title=”Varney letter” target=”blank” border_radius=””]Read Peter Varney’s open letter to MyFC members here[/symple_button]