When news happens send us your pictures, video and views. Text BE to 80360 or contact us by email
7:00am Thursday 22nd October 2009 in Sport
Exclusive By Neil Perrett
Cherries have mysteriously been thwarted in their attempts to make a payment to HM Revenue & Customs – the organisation which is threatening to have the club wound up.
The Dorset outfit was last week hoping to settle an outstanding bill to the tax man, only for the High Court in London to block the payment.
Cherries’ bank account has been frozen ever since HMRC was obligated to re-publish details of a winding-up petition in the London Gazette at the end of last month.
And as a consequence, club solicitors have been forced to approach the court with a validation application – a request to release funds – every time they wish to pay a bill.
However, even though HMRC is the club’s most pressing creditor, Cherries’ bid to satisfy its current VAT and PAYE liabilities was vetoed by the court.
It is understood the sum involved was around £150,000 and is due to be paid by the end of this week. Cherries chairman Eddie Mitchell insists the funds are available.
Mitchell told the Daily Echo last night: “We have spent £11,000 trying to unfreeze the bank account so we can pay certain parties, as and when their debts fall due.
“We have put certain companies in front of the judge which we want to pay, but, ironically, we were not given the go-ahead to pay HMRC, which seems strange.”
Asked whether the club had been given a reason, Mitchell replied: “No, not really. But we are going back to the court to try to arrange payment. Although they won’t let us pay, we have got the funds.
“This is causing us extra expense which could go towards clearing our debts. They are dictating who we can and can’t pay and, at this moment in time, we can’t pay the very organisation which is petitioning to have the club wound up.”
When contacted by the Daily Echo yesterday, a spokesperson for the Judicial Communications Office, said: “We can’t go into detail but a number of applications to pay debts were made. The judge went through the list and authorised those payments he felt were strictly necessary in the next few weeks.”
Mitchell and the current Cherries board has been trying to eat into the club’s inherited debt mountain ever since the Murry Group completed its takeover in June.
“We’re working tirelessly to get the club back on an even keel and to where we can pay people, as and when we have got the money,” added Mitchell. “We will get there and although this is causing us extra work and extra cash, we will get over these hurdles.”
Mitchell, who said the total indebtedness had reduced from just under £400,000 to £150,000 in the past five months, also confirmed all Football creditors had been satisfied after the club recently received a basic award payment from the Football League.
A basic award payment is made to every club in the Football League and is paid in several stages. Last season, the payment was £323,000.
Comments(38)
flyingleaper
says...
7:33am Thu 22 Oct 09
nonnogeppetto
says...
7:39am Thu 22 Oct 09
3231brian
says...
7:42am Thu 22 Oct 09
Yorkie Cherry
says...
8:04am Thu 22 Oct 09
cherrychris31
says...
8:24am Thu 22 Oct 09
Yorkie Cherry wrote:Although there are a few people who would jump up and put their normal negative comments on here, and i predict within the next half hour i will be proved correct. Thanks EM for keeping us informed. Thats all supporters ask for
It's not rocket science. When EM was asked if he had been given a reason he said 'No, not really!'. In other words yes he has but he does not agree with it. I applaud all his efforts so far but the Court has decided that the club must pay another outstanding debt before paying the HMRC. Is it the 'loan' from a past director? Thanks Mr Mitchell for keeping the club going.
Cantona4Cherries
says...
8:32am Thu 22 Oct 09
Square Old Codger
says...
8:50am Thu 22 Oct 09
cherrychris31
says...
8:55am Thu 22 Oct 09
Yorkie Cherry
says...
9:00am Thu 22 Oct 09
Cantona4Cherries wrote:I thought the previous directors loan was tagged onto the HMRC winding-up petition as reported by OHEC.
Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!
cherrychris31
says...
9:03am Thu 22 Oct 09
Yorkie Cherry wrote:The FL is like Fawlty Towers so they probably pay them extra to make it feel like home!!
Cantona4Cherries wrote: Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!I thought the previous directors loan was tagged onto the HMRC winding-up petition as reported by OHEC. Interestingly, Torquay are expecting around £400k from the FL as their share of the pool.
Trebor_1970
says...
9:14am Thu 22 Oct 09
northerncherry
says...
9:16am Thu 22 Oct 09
whatliesbeneath
says...
9:19am Thu 22 Oct 09
inthenet
says...
9:46am Thu 22 Oct 09
briankrj
says...
10:03am Thu 22 Oct 09
tricky1007
says...
10:03am Thu 22 Oct 09
whatliesbeneath wrote:had to happen!!! well done to the posts on here that think the board are doing well. why have a board that puts their own money in. i prefer one that gets the club running properly and on its own 2 feet. or as we have seen happen so many times, people come into the club, put a bit in, dont sort out the financial side propeerly, leave, and then the club heads back to where it was!!
For those saying the £150k is a great effort it's nothing to do with the directors putting their hands in their pocket, the payment is from the football league, So far this takeover has been funded by season ticket sales, gate receipts and the begging bowl. Ask Mitchell how much he's put in of his own money, but I see he's got his son training with us. For those saying we wouldn't have a club without them, thats absolute tosh, if it wasn't for Mostyns loan/share issue hampering all forms of negotiation. I would suggest any of you talk to Derek Timoney or Dave Musker, who will tell you all about who was interested in the club and how until the 24th hour they were the preffered bidder ahead of the Mostyn consortium, before Baker did a u-turn and sold to the Mostyn consortium. It was a deal that was far better for the future of AFCB and would not have seen the same old tired faces in charge of the club. Noone should forget Mostyns loan that was supposed to be shares, because this has had a stanglehold on the club.
Square Old Codger
says...
10:06am Thu 22 Oct 09
Cantona4Cherries wrote:There are two Creditors involved and of course whilst it remains before the Court any other Creditor can join in. The one thing that worries me is that the Judge may feel that this has dragged on too long and not be inclined to grant another extension if the debts aren't paid with in the next four weeks or so.But, Mr Mitchell will have been given the reason .
Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!
Cantona4Cherries
says...
10:47am Thu 22 Oct 09
Square Old Codger wrote:The 2nd creditor on the petition is Mr Piper and he was only owed £13k as stated in the ST holders meeting recently, so I'm sure he's being paid off as part of this proposal. Also as stated in the article EM confirms that all football creditors have now been paid off !!
Cantona4Cherries wrote: Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!There are two Creditors involved and of course whilst it remains before the Court any other Creditor can join in. The one thing that worries me is that the Judge may feel that this has dragged on too long and not be inclined to grant another extension if the debts aren't paid with in the next four weeks or so.But, Mr Mitchell will have been given the reason .
kenneth ormerod
says...
10:48am Thu 22 Oct 09
dorsetranger
says...
11:29am Thu 22 Oct 09
kenneth ormerod wrote:Correct the article is misleading as we dont know what part is being paid to HMRC. Yes the report does guess the amount as he states.
This article is very misleading ; Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ? Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount. The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world. Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.
djd
says...
12:51pm Thu 22 Oct 09
kenneth ormerod
says...
2:00pm Thu 22 Oct 09
ferndownmark
says...
2:12pm Thu 22 Oct 09
bowler28bowler28
says...
2:40pm Thu 22 Oct 09
kenneth ormerod wrote:Ken as is the norm you have your facts wrong the only money that the board is putting into the club is in fact their purchase of match tickets and food (prawn sandwiches if you like) at the ground. So as usual you are wrong, wrong, wrong. I havent bothered to respond to your twaddle for a month as you get so boring. Why dont you just spend your time chatting with your muppet mates Derick and Dave planning lots and doing nothing and that goes for whatliesbenieth as well. Get a life
Sorry dorsetranger but comments puzzle me ? I am asking for the full facts which Mitchell or the Echo does not give. No fault of the Echo as they can only guess but surely Mitchell knows the full facts ? I certainly support the football team but not the team running the club who it appears have no money and want us the fans to rescue them whilst they have their prawn sandwiches. The board are certainly doing what they promised djd , no money , so how can we let them sort out the debts. From where i am sitting the Judge seems to be doing that. Lets not fall for the Mostyn / Savi spin again , Mitchell is only telling us part of the sad story.
devon exile
says...
3:15pm Thu 22 Oct 09
Square Old Codger
says...
3:27pm Thu 22 Oct 09
kenneth ormerod wrote:The article says CURRENT PAYE and Tax - not the arrears,
This article is very misleading ; Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ? Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount. The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world. Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.
Square Old Codger
says...
3:27pm Thu 22 Oct 09
kenneth ormerod wrote:The article says CURRENT PAYE and Tax - not the arrears,
This article is very misleading ; Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ? Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount. The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world. Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.
Square Old Codger
says...
3:27pm Thu 22 Oct 09
kenneth ormerod wrote:The article says CURRENT PAYE and Tax - not the arrears,
This article is very misleading ; Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ? Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount. The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world. Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.
mossy 1
says...
3:51pm Thu 22 Oct 09
sea poole
says...
6:07pm Thu 22 Oct 09
Dave11
says...
7:24pm Thu 22 Oct 09
kenneth ormerod
says...
8:19pm Thu 22 Oct 09
fieldymex
says...
8:24pm Thu 22 Oct 09
Dave11
says...
8:46pm Thu 22 Oct 09
Julian1964
says...
10:50pm Thu 22 Oct 09
Dave11 wrote:Long at last someone i fully agree with.Please!Please!P
One of the funniest things about these messages is the stupid people who keep saying: 'At least he's communicating with the fans.' It's laughable, what exactly has he said? What has he said about the embrago? Everytime people claim he's communicating he's actually saying: 'I don't know,' he seems to know nothing, which obviously he does, so claims of communication are a joke.
People do realise why his company is called Seven Developments right?
All Seeing Eye
says...
1:09am Fri 23 Oct 09
fieldymex
says...
2:06am Fri 23 Oct 09
Search for Jobs
Search Now »
Find the right person for you
Search Now »
Search for Homes
Search Now »
Search for Cars
Search Now »
dc addict says...
7:25am Thu 22 Oct 09
Obviously, this gives mawhinney and his cronies another excuse to continue the embargo.
Eddie H. and Steve Lovell must be really ###### off. They probably thought that he would be signing up straight away.
What a country. Prisoners let out early then being paid expenses for the balance of their sentence and Steve is still being denied the right to work (and pay tax by the way).
Perhaps mawhinney is mates with this judge. No - can't be.