A statement released by Wasps Holdings Limited, the ultimate holding company of the group including Wasps Rugby Football Club and Arena Coventry Limited, have taken the difficult decision to file a notice of intention to appoint administrators in order to protect its interests,” a statement said
Wasps Holdings Limited said the measure provides a period for negotiations to continue to take place with interested parties who could secure its future.
Wasps set to appoint administrators
Now an intent to appoint administrators has taken place, it means the business will be in administration once an administrator has been appointed, the intent will provide a crucial period of grace to continue negotiations with a number of interested parties to secure the long-term future of the group.
“These negotiations have been going on for some time, are in advanced stages and we are hopeful of securing a deal
“In the meantime, the day-to-day operations of the business are unaffected, and we will continue to support our players, staff, supporters, bond holders and suppliers, and keep them fully updated during what we appreciate will be an unsettling time.”
The crisis has arisen due to Wasps’ difficulty in repaying the £35 million bond that was raised to help finance their relocation from High Wycombe to Coventry in 2014 and that was due in May.
While they are confident that they will secure the finance needed to prevent administration, failure to do so could result in automatic relegation from the Gallagher Premiership.
However, the Rugby Football Union has the discretion to reduce or waive any sanction if the insolvency was deemed to be beyond the control of the club, including in the event of a pandemic.
The Rugby Football Union confirmed urgent talks are ongoing to clarify the club’s current situation.
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With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.