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10/06/2015

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.

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.