Get involved! Send your photos, video, news & views by texting WN NEWS to 80360 or e-mail us
Kidderminster Harriers to dissolve Holdings company
8:00am Saturday 27th October 2012 in Sport
KIDDERMINSTER Harriers have moved to dissolve parent company Aggborough Holdings in a bid to head off new strict Football Conference rules.
The club expect laws banning the financing of clubs through loans to come through in the next few months.
Around £700,000 has been lent to Aggborough Holdings over the years by the likes of Barry Norgrove, Neil Savery, David Reynolds, Wayne Allen, the late Gordon Howard and current chairman Mark Serrell.
After reaching agreement with those involved, the creditors will receive shares in the club in proportion to the share of their loan.
Harriers finance director Joe Hancox said: “The Conference nearly passed a rule in the summer which banned the use of loans to finance football clubs.
“While the resolution was defeated, an amended one is expected in the next few months, the breach of which will result in penalties for non-compliance.
“The loans owed by Aggborough Holdings are substantial.
“The consequence will be the loan creditors in Aggborough Holdings will receive shares directly in Harriers in proportion to their share of those loans.
“This is a step forward for Kidderminster Harriers and means the club will be run by the club’s board of directors on behalf of the town.”
The holding company, made up of five shareholders, was set up by former owner Lionel Newton to encourage new investment and write off loans.
Meanwhile, more than 250 Kidderminster and district beavers, cubs and scouts, along with their leaders and parents, will attend today’s Harriers home match with Gateshead (3pm).