THE HIGH Court has appointed an interim examiner to Drogheda United Football Club.
The club said its financial difficulties were caused by delays over its proposed move to a new stadium.
Hinge Trading Ltd, United Park, Windmill Road, Drogheda, Co Louth, whose principal business is running Drogheda United FC, yesterday sought and secured the protection of the court.
The club said it had experienced cash-flow problems in recent months over a move to a new 10,000-seat stadium south of Drogheda at Bryanstown. As a result the club, league champions in 2007 with 27 players in its first-team squad and 12 backroom and administrative staff, is insolvent and has a deficit of more than €732,000.
Ms Justice Mary Finlay Geoghegan approved the appointment of Kieran McCarthy, of Hughes Blake Chartered Accountants, as interim examiner.
A report from an independent accountant said the club can survive if certain conditions are met, including: successful negotiations with players and staff over the restructuring of costs; obtaining an investment package; and the acceptance of arrangements on repayments of debts.
The club says it has significant debts to creditors including the Revenue Commissioners who are owed €535,506.
In a petition, the club's directors Brian Vincent Hoey, Christopher Byrne and Eugene O'Connor said they had formulated a plan in 2005 to ensure it would thrive. It was hoped to use the proceeds of the sale of United Park, a ground not owned by the club but vested in the FAI, to fund the development of a new stadium, residential units, offices and leisure facilities.
The directors invested €8 million of their own and the club's money. However, the project was taking much longer than anticipated. Planning permission was only recently granted and that decision was appealed by the National Roads Authority. Lack of capacity of United Park, which could hold 2,000 people, also presented a problem and the club had to move a number of important games to other venues.
The directors said they had concerns the Bryanstown project may never take place and other options were being examined. Several individuals had expressed interest in the club and it was due to have talks with a potential investor from the UK. The directors said the club's core business is sound.