LEAGUE OF IRELAND: THERE WAS cautious optimism among those involved in saving Cork City last night that the club can follow the lead of Shamrock Rovers by successfully emerging from examinership on a sounder financial footing over the coming months.
Kieran McCarthy of Hughes Blake, the same accountancy firm appointed in the Rovers case, was named as interim examiner to Cork City Investments Ltd yesterday. The appointment is expected to be made permanent at a full hearing of the application on September 1st, but the club was effectively granted protection from its creditors yesterday and work will begin straight away on securing the future of the club.
At yesterday's hearing it was confirmed the club has debts of about €1.3 million, with the Revenue Commissioners owed some €360,000. Other significant creditors include sportswear company Hummel as well as a security company and a print firm.
"The test to get this far is that it has a 'reasonable prospect' of surviving as a going concern," said Barry Lyons of Lyons Kenny and Co, the solicitors acting on behalf of the examiner, "and hopefully now a way of ensuring that that happens can be found."
A number of parties had, he said, "kicked the tyres", as they weighed whether to make an investment. A couple of those parties have yet to provide a firm indication of whether they intend to pursue their interest, but talks appear to be continuing on a number of fronts with a view to acquiring new funding.
Lyons confirmed to yesterday's court hearing that agreement had been reached between Cork City and English Championship side Reading on the transfer of striker David Mooney "for a significant sum". The value of the deal, which allows for performance-related add-ons, was not disclosed but it was said to be below the €400,000 figure mentioned in some media reports.
The transfer is a significant boost for the club as it desperately seeks to raise cash but is a considerable blow to manager Alan Mathews and his side's chances of securing a trophy this season and European football for next year. The 23-year-old striker was the league's top scorer at Longford last year when he was also named the league's player of the year. He subsequently turned down a number of offers from English clubs, apparently on financial grounds, preferring to follow Mathews to Turner's Cross.
Reading's interest in the Dubliner has been known for several weeks with a number of their coaching staff travelling to Cork to see him play in a recent Uefa Cup game before Steve Coppell took in the league win at Drogheda United where Mooney scored a penalty he had earned to win the game.
It remains to be seen whether the league's licensing committee will impose any sanctions on City over their financial problems. English league clubs are automatically docked points in such circumstances but penalties are not mandatory here.
In the past, however, Shamrock Rovers and Longford Town have lost points as a result of specific aspects of the financial difficulties that affected them.
