Livi move closer to liquidation

Massone has had unsuccessful talks with potential investors

Livingston's administrator has started making redundancies after owner Angelo Massone rejected an offer to sell his shares to prevent liquidation.

Massone had earlier told BBC Scotland that he did not believe that Donald McGruther would carry out his threat.

But McGruther said: "I am really saddened because obviously the message of the last four or five days has not sunk in. This is the end.

"I am having to dismiss staff, although that does not involve players as yet."

That would most likely come after Thursday's meeting between interim manager McGruther, from administrator Mazars, and the Scottish Football League, with the club officially going out of the business later that evening.

The SFL already has a plan in place to re-promote Airdrie United to Division One, with Cowdenbeath moving up to Division Two and Third Division operating with only nine clubs in the coming season because there is not enough time to find a replacement club.

McGruther had offered Massone £25,000 for his shareholding saying that this would then allow him to sell the club for a similar amount to investors interested in taking over the club.

"I have the 25 grand to hand here, but Mr Massone is not interested," said the interim manager.

"Basically, Mr Massone is now talking about introducing money which was not available three weeks ago or I would not be here.

"Frankly, money is not the issue. Basically, the supporters will not support the club, the players will not play for it and the local authority that took this decision to put me in basically are not going to reverse their decision to let Mr Massone or anyone supported by him back into the stadium."

Massone's Italian-based consortium bought Livingston last summer from former owner Pearse Flynn for £1.

The Italian businessman has consistently claimed to have invested large sums of his own money to keep the club afloat, but last season Livingston hit the headlines for the late payment of wages and stories of unpaid debts.

And it was landlord West Lothian Council, which is now owed £330,000, that finally took court action to recover its debt.

Massone has held talks with former Cowdenbeath owner Gordon McDougall and former Dumbarton chairman Neil Rankine in recent weeks without an investment or takeover being forthcoming to save the club.

And, just before the deadline passed, Massone told his : "My decision is to continue to work hard for Livingston Football Club and to find a solution.

"Now is the time to try to run the business, not to close the business immediately."

The club chairman, who said his lawyer had advised him not to accept McGruther's offer, called on politicians, potential investors and the interim manager to work together with him to save the club.

McGruther had warned that, should Massone miss the noon deadline, he would take the decision to put the club into liquidation on Wednesday evening and would close the club on Thursday.

There are parties interested in acquiring the club, but it is obvious that the main barrier to a successful sale is the control Mr Massone exercises Administrator Mazars

"Livingston Football Club Ltd is hopelessly insolvent, without any discernible cash flow, and in need of an immediate cash injection," said McGruther.

"There is no possibility of the club continuing to trade under the interim manager or any subsequent administration process.

"Any shareholding in the club is thus of no value.

"Despite the foregoing, on behalf of the creditors, I have today offered to buy the shares which represent the controlling interest in Livingston Football Club from Angelo Massone for £25,000, subject to certain conditions.

"Should this deadline pass without the share transfer, I regret it will be necessary to commence the liquidation of the assets of Livingston Football Club Ltd, including all its contracts, especially player contracts.

Livingston's players turned out on Saturday without pay as they lost their Alba Challenge Cup tie away to Queen of the South in the hope that a rescue package could be found.

Massone has held talks with former Cowdenbeath owner Gordon McDougall and former Dumbarton chairman Neil Rankine in recent weeks without an investment or takeover being forthcoming to save the club.

McDougall last week resigned from the board at Dunfermline Athletic, who said it would leave him free to help their Division One rivals survive, while Rankine told BBC Scotland he will interrupt his holiday and fly back to Scotland for talks with McGruther on Tuesday.

"There are parties interested in acquiring the club, but it is obvious that the main barrier to a successful sale is the control Mr Massone exercises over the company shareholding," added the administrator.

"The limited company represented by these shares is the only entity recognised by the SFL.

"Without a transfer of the shares, no interested party can contemplate investing in the football club.

"It is Mr McGruther's intention to acquire the shares on the creditors behalf in order to transfer them at the same price to any incoming purchaser.

"Without a change of ownership, it is thus impossible for the interim manager or any future investor to give the assurances the SFL will rightly seek regarding fulfilling the forthcoming season's league fixtures.

"Accordingly, the deadline is timed to allow the interim manager to attend on the SFL to report progress towards a sale, or alternatively on failure to acquire Mr Massone's shareholding, and thus the inevitable demise of the football club."

The Livi for Life Trust fans group has consistently urged Massone to leave the club and, along with West Lothian Council, has expressed confidence that the club could survive should the Italian leave.