Inverness Caley Thistle’s future back at ‘significant risk’ as no offers come in ahead of administrators’ deadline
Inverness Caledonian Thistle’s bid to exit administration has suffered a setback as joint-administrators BDO have confirmed that no offers were received for the club by the deadline of Thursday, March 6.
It had previously been stated that three parties were serious contenders to take over the football club, which officially entered administration at the end of October last year.
It was revealed last December that one bid had been rejected, but a statement released today by BDO has confirmed that no formal offers have been forthcoming.
The administrators say three areas of concern discouraged interested parties: the level of loans to the club from former directors, the disparate current shareholdings at the club making it difficult for a buyer to gain adequate control, and the uncertainties remaining around the ownership of land surrounding the Caledonian Stadium.
BDO say that if no new parties come forward with an interest in buying the club, the future of Caley Thistle will be at significant risk.
The statement reads: “Despite a strong level of interest from several parties, the Joint Administrators (JAs) of Inverness Caledonian Thistle FC (ICT) are disappointed to confirm that no offers were received for the club by the deadline of 5pm on Thursday, March 6 2025.
“Feedback from interested parties highlighted three concerns.
“Firstly, as any transaction would include the use of a Company Voluntary Arrangement (CVA) to compromise ICT’s debt, interested parties expressed concern re the current level of loans (circa £3.5 million) from former directors of ICT (the Loan Creditors). A CVA requires 75% or more of creditors voting in favour. Interested Parties indicated agreeing any sale and purchase agreement was problematic as a number of loan creditors were at a value where they could veto a CVA proposal.
“Secondly, the nature of the club’s disparate shareholdings is impacting the ability of a potential acquiror to have adequate control.
“And finally, the uncertainties stemming from the ownership of land surrounding the stadium.
“While the JAs are continuing to work towards a resolution, which would include a transaction and CVA to allow the club to exit the Administration free from historical debts and retain its status in the Scottish Professional Football League (SPFL), a sale transaction does not appear to be achievable in the absence of new parties coming forward and the future of the club is now at significant risk.
“The JAs are continuing to work to seek resolution to these issues.
“Prior to the JAs’ appointment in the summer of 2024, the Loan Creditors had agreed to write off their loans. The JAs have written to the relevant former directors requesting that they now fulfil their agreement. Some have agreed, others are pending. The JAs remain hopeful that this issue can be resolved shortly.
“To address the concern about the nature of the disparate shareholding, the JAs have also written to a number of material shareholders setting out the position and requesting that their shares are returned to the club, or the potential acquiror, at no cost. Further letters will be issued this week. A number have agreed to this request and the JAs hope that this issue can also be resolved.”
Former Caley Thistle chairman Alan Savage has been assisting with running costs since the club entered administration, and BDO have approached him to ask whether he is in a position to continue that support.
They have been met with a positive, albeit not completely exonerating, response.
BDO’s statement continued: “The JAs have also approached Alan Savage, former club chair, to ascertain if he could be prepared to support the club on an ongoing basis. Mr Savage has provided support to ICT in administration and has ensured funding is in place for the club to complete the 24/25 season. His commitment since the summer of 2024 until the end of the season will be circa £1million.
“Mr Savage has indicated he would be prepared to provide the following level of support to enable the survival of the club: 25 per cent of the acquisition price of the club, and 25 per cent of the funding requirements for the next two seasons after 24/25.
“This funding would be based on prepared budgets, with cost controls in place. Any deal Mr Savage would support will also require the resolution of the issues outlined. If an acceptable offer is put forward, the JAs hope to present a CVA to the creditors for their consideration with a meeting of creditors to take place by the end of April.”
Following the statement, a BDO spokesperson said: “We appreciate that this latest update will be disappointing for players, fans and the wider community.
“Given what has been achieved both on and off the pitch throughout the Administration period, we would very much like to see a sale of the club to ensure that its future is secured and we would encourage all parties to cooperate in this endeavour.
“We are grateful for Alan Savage’s ongoing financial support and would urge any interested parties to come forward with a view to acquire the club. The JAs would welcome the opportunity to discuss and provide a guide in respect of an acceptable price.”