League One club Plymouth Argyle face a 10-point deduction after releasing a notice of intention to appoint an administrator.
Argyle face 10-point deduction which would put them bottom
Plymouth Argyle face a 10-point deduction after releasing a notice of intention to appoint an administrator in a bid to solve their financial problems.
The cash-strapped League One outfit were facing a tax bill of £300,000 but this latest action will protect the club from insolvency action from creditors.
Argyle fought off a winding-up order from the High Court earlier in the month after a separate tax debt was paid in full.
However, the South Coast side now face a potentially crippling points deduction which would see them slip to the bottom of the table.
A statement on Plymouth's
official website read: "The directors of Plymouth Argyle Football Club have today issued a 'Notice of Intention' to appoint an administrator as they continue to seek a solution to the company's current cash flow problems.
"This action gives the club protection from insolvency action from creditors, whilst at the same time allowing the directors the opportunity to turn current expressions of interest into a permanent and lasting solution for the club."
The club insists that it is not yet in administration and that its fate is still in the balance, despite the recent move.
Ridsdale
However, an independent assessor will now be brought in to work alongside advisor Peter Ridsdale in a bid to restore Argyle to full financial health.
"This action does not mean that the club is in administration today nor does it assume that it will necessarily enter administration at a future date," the statement continued.
"Further steps will depend on the outcome of current discussions with potential investors.
"Under current Football League rules and despite the fact that the action taken is not administration, Plymouth Argyle Football Club will be subject to a 10-point penalty under the League's sporting sanctions rule.
"To allow the best options for the way forward to be independently assessed, David Hinchliffe from Walker Morris Solicitors has been appointed to work with Peter Ridsdale who will for the time being continue to act as an independent advisor to the board."
Plymouth, under the stewardship of Peter Reid, are currently 19th in League One having picked up 33 points from 31 games this season.
