LUTON TOWN
In the case of Luton Town, the Board considered an application from a new company, called Luton Town 2020, which has applied to join League 2 in place of the existing club, which is in administration.
Luton Town was unable to agree a Company Voluntary Arrangement (CVA) with its creditors and as a consequence is unable to satisfy the normal conditions of The League's insolvency policy for exiting administration. The Board decided, however, that it was prepared to exercise its absolute discretion under its 'exceptional circumstances' provisions in order to accommodate the new entity.
In accordance with recent precedent, the Board decided to include the following principle conditions of entry as a pre-requisite to the exercise of that discretion: -
1. The new company (Luton Town 2020) should pay the unsecured creditors the amount offered at the time of the CVA hearing (16 pence in the pound).
2. A 20 point deduction should apply in the 2008/09 season, which also takes into account the fact that this is the club's third insolvency event in the last ten years.