Terras' debt to break £900,000
as Rolls seeks CVA
By Ky Capel
Thursday 4th March 2010
CHAIRMAN George Rolls hopes a Company Voluntary Agreement
will save the Terras from the threat of liquidation.
With the debt at Weymouth Football Club set to break the
£900,000 mark at the end of this month, Rolls has sought
professional advice on how best to keep the club afloat.
And the Trade Recruitment supremo, who gained control of
the Terras little more than three months ago, is now adamant
that a CVA is the best way forward.
A CVA is an insolvency procedure that allows a financially
troubled company to reach a binding agreement with its creditors
over payment of all, or part of, its debts over an agreed
period of time.
A meeting has been scheduled for Friday, March 26 where creditors,
of which ex-chairman Malcolm Curtis is one, will decide whether
to accept the terms on offer.
If 75 per cent agree to the proposal which involves
paying back nine per cent over five years then all
creditors are bound by the terms of the arrangement.
However, Rolls warned that should the club fail in its bid
to secure a CVA, then 120 years of history will be lost and
the Terras will cease to exist.
Explaining the situation, he told Echosport: When we
came to the club at the end of November we were given the
creditors list, the debts of the club, we went through
it all and felt that it was serviceable.
Over the last two and a half months more debts have
come to fruition than what we were told about. The previous
board of directors didnt give us the full details of
creditors, that may well be because they didnt have
them from previous people, I dont know I dont
want to cast any aspersions on them.
But the facts of the matter are that there is a lot
more debt coming out of the woodwork, we obviously had a six-figure
sum come out a month ago from a previous employee (Andy Cookes
claim for £104,000) which has made the business unserviceable.
"Weve been taking advice from an insolvency practitioner
and its in the best interests of the Football club to
try and arrange a CVA.
That meeting will take place on Friday, March 26 and
what happens is creditors will be voting to see if they are
going to accept the agreement from the practitioner
all shareholders need to approve it as well and everyone should
get the details by the end of the week.
If the creditors agree, the club will continue in its
guise but will be in a lot healthier position. Its not
a pre-cursor to going into administration, its a case
of doing a deal with the creditors and paying X amount in
the pound over a period of five years.
The club then starts with a clean sheet of paper and
we can all move forward and get the club back to where it
needs to be.
If the vote doesnt go the way we want it to then
the club will go into instant liquidation.
Rolls added: Weve been paying off creditors to
when their debts have been due and weve had arrangements
in place with a lot of creditors, who have been fantastic.
However, with the other creditors that have come to
light, which we didnt know about, and the other claims
that have come in, the club just hasnt got the money
to be able to pay those debts. So weve had to bring
an insolvency practitioner in and we need to look at going
down the CVA route.
At the end of the day theres going to be either
a yes or a no. If its a no then unfortunately it will
mean the club will go into liquidation and thats 120
years of history gone because it has been badly run over the
last how ever many years.
Since weve been here weve managed to bring
down the debt in terms of the monthly loss. But we cant
put out the fires when all of a sudden there are new fires
starting every week.
The current level of debt stands at £822,312.45 but
Rolls revealed that figure is expected to rise in excess of
£900,000 over the next three weeks.
He said: When the creditors get their information in
the next couple of days the debt will show more than £820,000
but by the time the meeting takes place on March 26 it will
probably be just over £900,000.
We were told that the club was half a million in debt
when we took it on. But we havent racked up £400,000
worth of debt, this is debt or claims that have come in since
weve been here.
Theres no magic wand to make money fall off trees
so a CVA is the only course of action. Ive spoken with
the Supporters Club and the Terras Trust and told them whats
going on in terms of the way forward.
I made it quite clear Im here for the long-haul.
I know people think that if we get relegated I wont
be here, but I want the CVA to work, I want it to be approved
and I want to get Weymouth FC back to being a solvent business.
Creditors will get zero if we go into liquidation.
Ive been owed money with my firm and weve had
people proposing CVAs, but weve always ended up voting
yes because you get something as opposed to nothing.
Its not right, but all Id say to the creditors
is that Im sorry for the situation but I wasnt
part of imposing the debt upon them. I do apologise for it
happening but this is the only way the club can survive.
It remains unclear whether the Terras will be hit with a
10-point deduction should the CVA gain approval thus
all-but confirming their relegation to the Zamaretto Southern
Rolls added: Potentially theres a 10-point deduction
but I need to talk to the Conference about that. We arent
going into administration so I cant see why there would
be a deduction but every league has its own rules and the
Conference could potentially deduct us 10 points, which would
kill any hope of staying up.
Weve got to be realistic and sometimes you have
to take a step back in order to take steps forward. If that
means were in the Southern League next year then so
But if we do so with a business thats going to
be solvent, with players, staff and creditors getting paid
on time then I think everyone will live with that.
Football tends to go in cycles. You get four or five
good years sometimes followed by four or five bad years, hopefully
this is the end of the bad times and we can look forward to
A spokesman for the Football Conference stated: A 10-point
penalty is a possibility, but it all depends on the clubs
Administration could have been an alternative route but Rolls
regards that course of action as a dead end.
He added: Administration would have been another option
but the advice we got was that a CVA was better. Administration
is very costly as someone has got to fund it until a buyer
I want to still be in charge of Weymouth FC and want
to work with the local community, the Terras Trust and the
Supporters Club and make sure the club is run properly.
Ive been transparent with the Terras Trust and
the Supporters Club, shown them figures and shown them whats
happened since weve been here, and I think theyve
been happy with that.
No ones happy that the club is going into a CVA
but theyre pleased that I sat down and talked to them
and looked at a way forward.
The Weymouth board consists of vice-chairman Pranas Preidzius,
Lijana Preidziuviene, Eugenius Tiskus, Inga Preidziuviene,
Audrius Preidzius and Bronius Preidzius.
Chairman Rolls declared that he and the clubs directors
have so far pumped as much as £200,000 into the Wessex
He said: By the time the meeting comes around we will
have invested around £260,000 in the club.
When we first came to the club we looked at a £150,000
maximum but we were up to around £190,000 to £200,000
as of two weeks ago. Weve been paying it through our
companies, through ourselves, paying off debts and its
a lot of money.
We cant turn around and write out a cheque for
£900,000 because anyone would be mad to do so. The decision
has been made to go down this route but I believe the club
will come back stronger for it.
As long as the CVA gets approved we will only be paying
into the supervisor X amount a month and all of a sudden weve
got a budget, which will be in the pack that all the creditors
see, thats been forecast for next year and the directors
will only have to put loose change in.
Rolls experienced life in the dugout on Tuesday night as
manager Jerry Gill and reserve-team boss Dave Kiteley fell
ill prior to the 2-1 home defeat against Staines Town.
Reflecting on the game, Rolls added: With the football
background Ive got it made sense for me to go and help
out on the bench.
I dont think anyone who saw the game could fault
the players effort.
I thought we were very unlucky, especially with the
two deflected goals, and Matt Groves and Josh Llewellyn both
had chances that could have got us a point or even three,
which I felt we deserved.
The Staines board of directors said afterwards
that we were one of the toughest sides theyve played
in a while, so it was very encouraging.
WEYMOUTH FC CREDITORS (amount in £)
Able Recruitment 1,010.11
Agora Business Publications LLP 197.84
AKI Ltd 9,000.00
Alan Lewer 25,000.00
All Saints School 280.00
Andy Cooke 104,000.00
Apex Financial 4,400.00
ART (GB) Limited 665.64
Audrius Preidzius 14,055.00
Automotive Leasing Ltd 16,090.00
Barclaycard Merchant Services 92.11
Barclays Bank 31,900.00
Beds Direct 165.00
Bluebird Coaches Ltd 2,549.00
Bookers Ltd 7.73
Bright Sparks Ltd 57.50
British Telecom 298.59
Brodie Publishing 230.00
Bronius Preidzius 31,234.00
C&O Tractors 1,556.83
Clarke Willmott 6,204.00
Clean Up Solutions 1,175.50
Dorset Cake Company 379.65
Dorset Embroidery & Printwear Ltd 69.00
Dorset Media 162.00
Dorset Police Authority 1,658.10
Dr D S Tarver 160.00
EMS Physio Ltd 204.95
G E Capital 3,366.00
George Rolls 66,090.00
Graingers Wholesale 28.19
Graphics & Print Telford Ltd 2,903.95
Helen Cullen 2,640.00
Infotec UK Ltd 539.27
Isis Mineral Water Ltd 67.53
Link Mailing Services 356.20
Mann Brothers Ltd 468.83
Marcus Browning 7,500.00
Mr A U H Gankande 525.00
PC World 2,319.40
Physique Management Co Ltd 339.18
PPL Limited 649.43
Pranas Preidzius 33,091.00
Project 20 Limited 359.55
Prostar Sportswear Ltd 15,896.00
Proton (Southern) Ltd 630.20
Q & A Limited 1,319.96
Queensway Publishing Ltd 3,528.00
R & B Trophies 958.14
Radipole Primary School 127.50
Real World Services 967.73
Redlands Community Sports Hub 381.45
Rob Bailey Ceramics 297.28
Roffey Limited 643.25
Sky Business 391.22
South Coast Catering 58.57
Southern Contract(s) Ltd 224.25
Southern Electric 2,966.00
Sprint Signs & Graphics Ltd 2,246.39
St John Ambulance 1,046.30
Stag Office Products Ltd 137.79
Stuart Barnes Ltd 89.76
Sunburn Styles Ltd 499.68
Terras Saviours 37,500.00
Tesco Personal Finance 99.00
The Football Reference Ltd 50.00
The Performing Right Society 947.67
Threadworks Embroidery, Print & Design 47.00
Thring Townsend 418.23
Trade Recruitment 28,333.00
TV Licensing 139.50
Umbro International Ltd 937.65
Vending Matters Ltd 30.28
Voluntary Arrangements Service 78,000.00
Wessex Broadcasting Ltd 1,297.60
Wessex Delivery LLP 4,600.00
Wessex Park 219,500.00
Wey Print 500.56
Wey Valley School 228.00
Weymouth Mower Centre 382.86
Weymouth Rugby Club 495.00
William Ronald 7,025.90