WRFC Trading Ltd

The Atlas consortium have completed their takeover of Worcester Warriors following months of turbulence which saw their initial bid rejected by the Rugby Football Union ("RFU").

We last wrote about this matter in January, when Atlas submitted an improved offer after the RFU found that Atlas had refused to meet certain conditions put forward by the RFU, including commitments not to dispose of land around Sixways Stadium.

On 2 February 2023, Joint Administrators Julie Palmer, Julian Pitts and Andrew Hook of Begbies Traynor exchanged sale contracts with Atlas. Key terms included:

• a deadline of 2 May 2023 for the completion of the sale;

• the sale of the club's business and certain of its assets such as equipment, goodwill, IP (i.e., the Worcester Warriors brand) and leasehold interest in Sixways Stadium, but not its "P Shares" and "Invested Units" in the Premier Rugby League; and

• a condition that Atlas may not, within 5 years of completion, dispose of its interest in Sixways Stadium or its freehold interest in the land surrounding Sixways Stadium.

Last week, Atlas confirmed that the sale had completed.

The Department for Digital, Culture, Media and Sport, which has a fixed charge over the company's P Shares and Invested Units and is owed over £16 million, is not expected to be repaid in full at this time.

The Joint Administrators' latest progress report can be found HERE. They were assisted by Bryan Cave Leighton Paisner, while Atlas was assisted by Shoosmiths.