Dundee to present creditors deal

Last updated : 08 February 2011 By BBC Sport

That would allow the First Division club to continue under new ownership.

With no other offers for the club, other than that from a fans' group, Dundee could face liquidation if the offer is rejected.

Dundee entered administration for the second time in October 2010, and have debts upwards of ?2.3m.

As punishment, the Scottish Football League handed down a 25-point penalty, which the club challenged but were unable to overturn.

If Tuesday afternoon's offer is accepted by at least 75% of the creditors, it would then go to the shareholders to ratified.

Any objections by creditors could still be lodged within 28 days, after which Dundee FC Supporters' Society Ltd would become the majority voice at the club with 53.7% of the shareholding.

The settlement offer would not involve the resolution of money owed to former players or management - who would be dealt with by the new owners

That could pose problems with HMRC, to whom Dundee owe taxes of around ?365,000, as they who do not look favourably on any creditors receiving preferential treatment.

However, if the club do not deal with football staff separately, they could find themselves the subject of further sanctions by the Scottish Football League.

After going into administration the club made nine players and their management team redundant in an effort to cut costs, with former player Barry Smith placed in charge of the team.

The club also sold their top asset, striker Leigh Griffiths, to Wolves for a fee of around ?150,000 in January.

On Saturday Dundee moved off the bottom of the First Division, leapfrogging Stirling Albion, after a 2-1 win over Queen of the South.

Source: BBC Sport

Source: BBC Sport