Shares in Southampton suspended

Published Add your comment

Football News

Shares in the parent company of Southampton have been suspended after the business failed to secure additional funds ahead of a March 31 deadline.

Southampton Leisure Holdings warned that without the injection of additional finance it would be unable to continue as a viable business.

While talks with a number of parties are going on, the company said it was required to suspend its shares because the uncertainty had prevented it from posting half-year results before Tuesday's three-month deadline.

The Times newspaper said the club had failed to agree an extension of its overdraft with Barclays and accountancy firm Begbies Traynor was standing by to step in as administrator.

It is possible that moves to put the club's parent company, rather than the club itself, into administration will save it from having points docked by the Coca-Cola Championship.

The team is three points from safety in 23rd position. Wednesday's report in the Times said the club will have until the end of the summer to find a buyer or face bankruptcy.

The business is heavily in debt after spending more than £30 million on a 30,000-seat stadium more than four years ago. Its debts of £27.5 million are reportedly made up of financial liabilities of £23.1 million and an overdraft with Barclays of £4.4 million.

The Financial Times said Barclays and Norwich Union, which holds short-term loan notes for the construction of St Mary's Stadium, have been in talks over renegotiating the liabilities. Shares were suspended at 9.5p, having fallen from 34p a year ago.

It said in a statement: "The company is currently in discussions with a number of parties concerning the injection of additional finance into its business.

"Unless this funding is secured, the company will be unable to continue as a viable business for the forthcoming 12 months and is therefore unable to publish half-yearly report to December 31 2008 by March 31 2009 which it is required to do under the AIM (stock market) rules."

Copyright (c) PA Sport 2009, All Rights Reserved.

Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE:

Norwich City

Article Comments

Read more

Report author of article

Please let us know if you believe this article is in violation of our editorial policy, please only report articles for one of the following reasons.

Report author


This article has been written by a member of the GiveMeSport Writing Academy and does not represent the views of or SportsNewMedia. The views and opinions expressed are solely that of the author credited at the top of this article. and SportsNewMedia do not take any responsibility for the content of its contributors.

Want more content like this?

Like our GiveMeSport Facebook Page and you will get this directly to you.

Already Subscribed to Facebook, don't ask me again

Follow GiveMeSport on Twitter and you will get this directly to you.

Already Following, don't ask me again

Like our GiveMeSport Page and you will get this directly to you.

Already Subscribed to G+, don't ask me again