Crystal Palace administration caused by hedge fund debt (From Your Local Guardian)

Crystal Palace administration caused by £4.5 million hedge fund debt

9:30am Thursday 4th February 2010 in Sport By Mike Didymus

Crystal Palace’s descent into administration occured with lightning speed, after investment company Agilo tipped the team over the edge last week to leapfrog other creditors.

Agilo specialises in ploughing money into “distressed companies” in an attempt to turn them round and secure a profit, and was owed about £4.5m by the club before it called in administrators.

The hedge fund’s decision was spurred by fears Her Majesty’s Revenue and Customs would receive £2m ahead of Agilo being paid back, after the tax office issued the club an order to wind-up on January 27.

Pushing the club into administration ensured Agilo jumped to the top of the club’s creditor queue, but also forced Palace to accept bids for players in order to settle its debt.

Agilo loaned the club a further £1m yesterday to ensure players received their month’s wages.

Malcolm Wicks, Croydon North MP said: “[Agilo] moved at the wrong time, before the transfer window was closed. It is water under the bridge, but I will be asking why Agilo’s directors, including Michael Portillo, acted in such a crass manner.”

Richard Ottaway, Conservative MP for Croydon South said: “The timing caught us all by surprise.

“The club needs a long-term solution, so we need to get the finances on a firm footing and lower the debt. It is imperative the ground and the club are in the same ownership.”

Agilo refused to comment.