WRFC Trading Ltd - Case Update

Begbies Traynor have confirmed that Worcester Warriors’ administration has been extended, as new owners Atlas have yet to complete the purchase of Sixways stadium and surrounding land.

We last wrote about Worcester in May, after the sale of the club was completed. A report from Joint Administrators Julie Palmer, Julian Pitts and Andrew Hook of Begbies Traynor revealed that Atlas paid £2.05m to acquire the club, but that they had yet to complete their purchase of Sixways stadium and the surrounding land, for which they are required to pay a further £1.18m by 9 October.

As a result, the Joint Administrators must remain in office to receive the further payment, and to make a distribution to "subsequently make a distribution to the preferential creditor" who has given consent for the administration period to continue.

According to the most recent progress report, secured creditor DCMS, owed over £16m, is not expected to be paid in full. There are no primary preferential creditors, as all employees were employed by another entity which entered compulsory liquidation. Secondary preferential creditor HMRC is likely to receive a dividend, but the expected timing and quantum are unclear at this time.

The Joint Administrators have been assisted by Bryan Cave Leighton Paisner. Their latest progress report can be found HERE. Atlas have been assisted by Shoosmiths.