Financial Problems At Oxford City - 5 September
The Oxford Mail reports Oxford City FC are in talks with investors to avoid going out of business after being summoned to the High Court faced with liquidation.
Please note the report below is as published in the Oxford Mail - Oxford City have since advised the outstanding amount was settled, and a winding up order will not take place. The OM will be publishing amendments accordingly.
The club are due in court this morning and could be issued with a 'winding up order', which would see it closed down as a business and its assets sold. But chairman Brian Cox said talks had been opened with potential investors and that this morning's hearing would be delayed as a result.
He said: "There are two or three parties who have come to us with these things in the last week — we have talked to them and had it delayed. We are talking to people about investing in the club, so they (the creditors) have agreed to delay any action until then."
Going into liquidation would mean the club would have to stop employing people – which in its case would include paid players, staff and the manager.
Mr Cox said that talks with potential investors were underway and that any action before the conclusion of those discussions would leave creditors empty-handed. He said: "We are talking to several people at the moment to try to get some investment in, but it's just talks at the moment. Until we can do something we can't deal with these creditors. Of course you might get one of them who says 'no, we won't wait any longer', but they are not going to do themselves any favours if they do that because you can't get something out of nothing."
The High Court summons comes less than four months after former club director Thomas Guerriero was jailed for more than 12 years for masterminding a $6.6m investment fraud through his company which owned a 49 per cent stake in the Marsh Lane-based club. Guerriero resigned from his role at the club in December following his arrest and while the club said it had not put any money into the Florida businessman's venture it admitted it would lose a sponsorship source as a result.