Three parties in running to buy Cork City FC
The Examiner in charge of the financial affairs of Cork City, Kieran McCarthy, confirmed today that he is talking to three parties looking to buy the club.
McCarthy, who reports back to the Four Courts on October 7, said that of the interested groups, one was more active than the others and is the “main player” in his eyes.
“All we are doing at the moment is trying to keep costs down and we are talking to potential investors,” revealed McCarthy.
“I am in negotiations with three parties and the next seven days will tell a lot.
“One of the burning issues in the background is the fact that the players will have to be paid their back money, otherwise, the club’s UEFA licence for next season could be in jeopardy,” he added.
While McCarthy would give no further details, the “main player” so far in terms of the three potential new investors is believed to be a local businessman, who tried to buy the club from then chairman Brian Lennox two years ago.
He has plans to buy property near the ground as an integral part of his takeover bid and give the fans’ group, FORAS a shareholding portfolio.
It is understood any investor has to put €1m in securities up front before a takeover bid can progress this week.
Meanwhile, the Arkaga investment group and owner Gerard Walsh are set to write off their investment, which was used to fund Cork City over the last 18 months, in a bid to attract new investors.
City CEO and director Pat Kenny, who was at last night’s 1-1 draw with Derry City, said that the Jersey-based group are prepared to waive their €990,000 investment to keep the club in football.
“Gerard Walsh wants to make sure the club survives and Arkaga won’t hinder anyone coming through with a proper takeover bid,” explained Kenny.
Any investor will, however, have to pay off a number of creditors, most notably the Revenue Commissioners, and come to an agreement with the City players over wages they are owed.
The squad agreed to a 70% pay-cut last month in order to save the club.
“The debts to the creditors have to be looked at in Examinership but I am confident a deal will go through sooner rather than later,” he added.
