Aggborough Holdings to be liquidated as Harriers move to head off new Conference rules (From Kidderminster Shuttle)
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Aggborough Holdings to be liquidated as Harriers move to head off new Conference rules
9:07am Thursday 25th October 2012 in News
Kidderminster Harriers have moved to dissolve Aggborough Holdings in a bid to head off new Football Conference rules.
The club is expecting new laws which will ban the financing of clubs through loans in the next few months.
While the Reds do not have any standing loans, £700,000 has been lent to Aggborough Holdings over the years by the likes of Barry Norgrove, Neil Savery, David Reynolds, Wayne Allen, the now deceased Gordon Howard and current chairman Mark Serrell.
After reaching agreement with those involved, the creditors will recieve shares in the club in proportion to the share of their loan.
Harriers finance director Joe Hancox said: “The Conference nearly passed a rule in the summer which banned the use of loans to finance football clubs.
“While, the resolution was defeated an amended one is expected in the next few months, the breach of which will result in penalties for non-compliance.
“While there are no loans financing the club, the loans owed by Aggborough Holdings are substantial.
“The consequence will be that the loan creditors in Aggborough Holdings will receive shares directly in Harriers in proportion to their share of those loans.
“This is a step forward for Kidderminster Harriers, it means the club will be ran by the club’s board of directors on behalf of the town.”
The holding company was originally set up by former owner Lionel Newton, who has been consulted about the liquidation, to encourage new investment and write off loans.
Over the years it became the dominant force but since Harriers’ close brush with financial collapse last term its influence has waned, as investors such as Kath and Ernie Lane came to the fore.
Aggborough Holdings was made up of five shareholders, who most recently were Keith Chandler, Allen, Serrell, Norgrove and Howard’s estate.
The move will also mean Harriers can take advantage of the Enterprise Investment Scheme set up by the Government, designed to encourage investment in smaller high risk companies by offering tax relief.