Report of the Company Voluntary Arrangement

CREDITORS' MEETING

Nick Hood opens the meeting by running through the circumstances bringing it about. Following the rejection of the first CVA (Creditors' Voluntary Arrangement), a fixed sum of £15k (from third parties) was made available for what obligatory becomes another CVA proposal.

Votes in favour of the proposals, in the form of proxies to Hood, totalled the sum of £571,823.18 (including the balance of £165k from Barclays Bank and the Football Trust). The Inland Revenue, crucially, had a total of £197,631.00 - the most significant creditor. For the CVA to be accepted, a 3:1 majority was required - i.e. 75% for the proposals.



The Inland Revenue representatives sought clarification that footballing creditors - unsecured - would not be paid in preference to them. At this point an error in the proposal documents (point 6.2) was amended to reflect that this would indeed be the case.

The Inland Revenue went on explain that it was in this area in which they rejected the original proposals, and that in no instance would they be prepared to accept a voluntary agreement where footballing creditors would take preference over them out of principle.



Proxies favouring the CVA to the sum of £568,123.18 were joined by a discretionary amount of £14,212.90 from Hood and a further £15,000.00 from Malcolm Grant and Chris Kelly to total £597,336.08. Hampton & Richmond Borough FC's amount of £4,700.00 was at this stage deemed to be potentially the casting vote (should the Inland Revenue have rejected the proposals), yet it was determined that should they abstain the CVA could still go through with or without the backing of the Inland Revenue. The Hampton representatives, not wishing to impose upon the survival of Kingstonian, chose to abstain.

As the discussions continued in a meeting reaching length of one and a half hours, the Inland Revenue decided that with some minor modifications (such as extending the CVA period to 6 months) it too would be in favour of the CVA. Hence it was unanimously approved, with just one creditor - Hampton and Richmond Borough FC - abstaining. The CVA covers all creditors.



At this point Nick Hood informed the meeting that he would now seek discharge from administration and move the club into CVA. A creditors committee comprising the Inland Revenue, Chris Kelly and one other to be confirmed was also suggested.

Regarding the footballing debts - crucial to the stance of the FA and Isthmian League - Hood expressed he had no idea or desire to know of dealings with the footballing creditors. These would be done by the club's own arrangements.

SHAREHOLDERS' MEETING

Following the creditors' meeting the acceptance of the CVA was put to the shareholders, where just a majority vote was required. In the absence of many shareholders (and their proxies), the resolution to accept the CVA was nonetheless carried unanimously.