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Birmingham Post
Birmingham Post
Business
Tom Pegden

Derby County administrators taking legal advice over media coverage of saga to find new owners

The joint administrators of Derby County say they have taken legal advice over what they say is the growing level of inaccurate reporting about their efforts to find a buyer for the troubled club.

Quantuma said they were ready to talk to anyone with the potential cash to take the club on amid growing unrest at the length of time the process was taking.

Derby went into administration last autumn and had 21 points docked as a result of their finances, pushing them down into League One next season.

Delays in finding a new owner intensified on Friday evening when their preferred bidder – US businessman Chris Kirchner – missed a deadline to show he had the cash to complete a deal.

Conversations were continuing with Mr Kirchner but have now been opened again to other interested parties with ex-Newcastle Mike Ashley also interested.

The EFL subsequently told Quantuma that – with time running out before the 2022/23 fixture list is published – it wanted to be party to all correspondence and discussions between the administrators and potential bidders, so that it could negotiate directly with them.

In a statement, the joint administrators said they were “concerned at the growing level of inaccurate reporting on the circumstances surrounding a takeover of the club”.

They said: “The level of inaccuracies being reported is divisive and is unnecessarily driving both a rumour mill and growing anxiety, uncertainty, and ill feeling amongst supporters.

“The joint administrators are deeply disappointed to note that this has led to a tirade of unfounded abuse being levelled at the joint administrators and their staff.

“The joint administrators wish to clarify a number of the inaccuracies being reported as follows:

“The joint administrators confirm that, to date, they have received no payment for their work, and indeed have accrued substantial out of pocket expenses which the firm is currently funding.

“The joint administrators wish to confirm they are engaging with a number of parties who have expressed a desire to acquire the club.

“As confirmed in yesterday’s [Friday’s] update, Mr Kirchner is one of those parties, as he continues to seek to provide us with satisfactory evidence that he is in a position to complete the acquisition of the club.

“At this stage, the joint administrators will not be naming any of the other parties they are engaging with. However, they understand some of those parties may wish to go public of their own accord.

“The joint administrators would also like to confirm the process in place for those parties who wish to acquire the club.

“The joint administrators are running a competitive bidding process. Bids should be best and final and not contain any referential element.

“Clearly, any bid is subject to interested parties entering into an NDA, accessing the data room, and undertaking their own due diligence.

“Of the parties we are engaging with, some are more progressed in this process than others.”

It added: “Whilst we appreciate the events of this week are affecting communities, staff and fans we would ask that the media and social forums should exercise caution and not make false assumptions.

“The joint administrators are discussing with lawyers how to deal with certain manifestly inaccurate articles published recently.”

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