R3 comments on Football League insolvency rules
In response to the Football League changing its rules on insolvencies, Andrew Tate, vice-president of R3, the insolvency trade body, says:
"We are delighted that the Football League has taken on board our recommendations. The insolvency profession has been calling for a better deal for unsecured creditors in football insolvencies for some time. Non-football creditors should not be left empty-handed, and the fact that they often ended up in this position thanks to the Football Creditors Rule has been addressed in a manner which recognises the inequality of the Rule when compared with the objectives of the UK’s insolvency regime.”
“It’s also welcome that clubs will no longer be required to undertake a CVA. This should shorten the time need by an insolvency practitioner to rescue a club, saving costs for creditors and shortening the period of uncertainty over a club’s future.”
R3’s proposals for changing football insolvencies are here.