Inverness Caley Thistle’s administration-hit League One rivals Dumbarton agree deal to escape predicament with all creditors paid in full
Inverness Caledonian Thistle’s League One rivals Dumbarton have confirmed they are closing in on their own escape from administration.
The Sons followed Caley Thistle into financial difficulty earlier this season, with their 15-point deduction being confirmed just three weeks after Inverness had suffered the same fate.
However, in Dumbarton’s case the situation was slightly different. Joint-administrators Quantuma said at the time that the situation was the result of non-receipt of "significant" funds owed from the sale of land in 2021.
That always presented a somewhat more optimistic picture for the eventual outcome than in the Highland capital, where it was confirmed last week that a deal was in place that would see Alan Savage buy the Caley Jags and bring them out of administration.
In Dumbarton’s case, Quantuma have confirmed that an agreement has been readed with Gareth Phillips on a proposal that would see the football club exit administration solvently and with all creditors paid in full.
Quantuma had been involved in litigation against Pendragon Group Limited, of which Mr Phillips is the principal, but a deal has now been reached on the basis that Pendragon will not hold security over the football club’s assets.
A statement released by the joint-administrators reads: “The Joint Administrators of Dumbarton Football Club Limited can confirm that they have agreed heads of terms with Gareth Phillips on a proposal that would see the club exit administration solvently and with all creditors paid in full.
“Fans will be aware that the administrators have been engaged in litigation against Pendragon Group Limited of which Mr. Phillips is the principal.
“The full terms of the proposal are subject to confidential negotiations, however as part of the proposal, the litigation with Pendragon would be concluded on the basis Pendragon would not hold security over the club's assets.
“Mr Phillips would introduce sufficient funding to stabilise the trading of the Club going forward and the administrators are required to be satisfied that there is security for cash flow and a business plan to provide support for the club for the next three seasons.
“A non-refundable deposit has been received by the administrators which will cover any short-term trading shortfall whilst the transaction is being negotiated, until the target completion date in early May.
“The administrators will now work with Mr Phillips and his team to conclude this proposal to allow planning for next season to commence.”
Both Dumbarton and Inverness Caledonian Thistle will begin the 2025/26 campaign on minus five points after their insolvency events this season.
However, in Dumbarton’s case that will be in League Two, with their relegation to the bottom tier of the SPFL already mathematically confirmed.