Looking at the circumstances of Rotherham's10 point deduction lastyear, it is suggested here that there had to be a creditors meeting first (see 'Rotherham to escape liquidation' lower down). Have Leeds had one yet?</p> Millers achieve deal with creditors Rotherham United officials met with officials today and agreed a Company Voluntary Arrangement, accepted by a majority of the creditors, securing the club's short-term future. The Millers owe £3.7m, and the arrangement will allow the club to repay the money owed to creditors from future profits the club make. As a result of the arrangement a new company has been formed, which will purchase the assets of the old company, but in essence their is no change in the powers that be at Millmoor. The Football League now have to agree to the arrangement, which can take around eight weeks, and upon doing so will transfer the shares from the old company to the new one. The agreement means the Millers will have 10 points deducted before a ball is kicked at the start of next season. The penalty is an automatic deduction enforced by the Football League in such a situation, however the Millers may appeal against the ruling. 'It's a bit of a relief, we were fairly confident it would go through,' said chairman Denis Coleman. 'Just a bit disappointed in a couple of people [creditors] that voted against it, Mick Harford for example... at the end of the day if the club had have been liquidated they'd have got nothing out of it. 'Saturday was a major hurdle, to stay in this division, today's the next hurdle, that's two of many... but let's take it forward now.' Meanwhile the Millers have released three players. Winger Andy Monkhouse, and defensive pair Scott Minto and Phil Gilchrist have all been handed free transfers. All three players have made limited first-team appearances due to injury this year. However, Shaun Barker, Will Hoskins, Martin Butler, Paul McClaren, John Mullin and Paul Shaw are to be offered new deals. ================ Previously ================ Rotherham to escape liquidation 19-Apr-2006 From BBC Sport: Rotherham have announced that they are seeking a voluntary arrangement with their creditors to keep the club alive. Despite recent investment from local businessmen, the club still owe more than £500,000. Millers chairman Denis Coleman told BBC Radio Sheffield: 'This is to stop the club going out of existence and we're confident it will be agreed.' <font color="#ff3300">If the proposal is agreed at the creditors' meeting on 5 May, a 10-point deduction will be enforced next season. </font> Last month a group of Rotherham businessmen, headed by Coleman, stepped forward with an investment package that the club had hoped would see off the threat of liquidation. But with the financial position at the club worsening after the Inland Revenue issued a winding-up petition, the club have moved for a voluntary arrangement to avoid going out of existence. Coleman added: 'What we've done today is not liquidation, it's not administration, it's a company voluntary arrangement.' </p>
the creditors don't agree the points deduction that's a FL rule-what they do is agree the CVA-if it isn't agreed then the club folds and no-one getsa bean-and as I posted elsewhere the major creditors have the biggest say-it's usually the Inland Revenue and/or HM Customs(VAT) so they sway the vote
RE: the creditors don't agree the points deduction I know the Creditors don't agree the 10 point deduction, but the way those Rotherham reports are worded (from the website 'Clubs in Crisis'), it seemed there needed to have been a meeting of creditors as part of the Admin process BEFORE the FL could impose the 10 point penalty. Look at the dates in those reports as well. Well before the end of last season, yet Rotherham carried over their 10 point penalty.
