Restructuring experts believe the FAI’s balance sheet suggests that it will be forced to seek the protection of the courts eventually, or strike a deal with its creditors.
, a corporate restructuring partner with Crowe. “Once it runs out of cash, the directors will be forced to petition the courts or the creditors to wind up the company.”He suggested a type of restructuring of debts called a Scheme of Arrangement could be pursued, which identifies the “least-worst option for creditors and would allow the football governance to continue going forward”.However, he said there is likely a financial day of reckoning coming for the FAI.
Given the dire financial situation, accounting sources believe all options must be on the table, including an orderly wind-down of the company and the transfer of its assets into a new corporate entity – effectively a new company for running Irish football. The FAI still owes millions on the Aviva Stadium in Dublin, and surrendering that stake either through a sale or after a receivership initiated by a creditor would help alleviate some of its debt.
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