Noon deadline for Cork City deal as scale of debts unclear

SOCCER:THE CONSORTIUM aiming to take over Cork City from Tom Coughlan has said it will make a final decision on whether to proceed with the deal before noon today.

The group, which includes businessmen Peter Gray, Michael O’Connell and Jim McCarthy as well as supporters’ group Foras, has been busy attempting to establish the extent of the club’s debt but says ongoing uncertainty regarding the scale of the debt has threatened to put an end to its attempt to assume control.

In a statement issued last night the consortium said it was “increasingly unlikely” a deal would be completed due to its inability to clarify a number of key issues relating to the club’s financial position.

“According to McGuire Desmond Solicitors, acting for the group, a lack of verification and certainty regarding particular pledges that may have been made in securing possible loans to the club are proving to be a serious impediment to the deal progressing,” a statement issued on behalf of the consortium said.

“There are also issues with new debts being uncovered during the course of due diligence as well as doubts over the title to shares within the club,” the statement continued.

“The group also feel that there is a lack of information coming from the current owners of the club regarding many of these issues and, with the licensing committee of the FAI due to meet early next week, a deadline of 12pm on Friday the 19th of February has been set for a decision on whether to finalise the deal to purchase Cork City FC.”

The debt of just over €107,000 that resulted in this week’s High Court action is reported to have been paid and, while City are due back in the High Court on Monday, it is expected the proceedings against the club by the Revenue will be struck out at that stage.

In the event that the takeover has gone through by then, it is likely the club will be granted a licence to play in the premier division for the coming season.

If, however, the deal collapses and City’s wider problems have not been resolved then the club is likely to fold, leaving the league with no option but to hand Bray Wanderers a place in the top flight, which would probably result in Foras’s proposal for a new club to play in the First Division receiving the green light.