Swifts in plan to wind up Derry

The Dungannon Swifts Board has decided to commence winding-up proceedings against cash-strapped Derry City.

Derry owe the Swifts £30,000 from the selling on clause of Niall McGinn to Celtic and a missed payment deadline has prompted Dungannon to take action.

City's Board held talks with community representatives, business leaders and politicians on Monday night to discuss the extent of the financial problems.

Derry players and backroom staff are owed several weeks' wages by the club.

Swifts took legal action and agreed an out of court settlement with the Brandywell club in October over the money owed from a sell-on clause resulting from McGinn's transfer to Celtic.

The parties reached an agreement but the exact amount Dungannon was to receive was not revealed.

McGinn moved from Dungannon to Derry in January 2008 and then signed for Celtic in December 2008.

In a statement Derry City said the club was "aware of its obligations and is working towards meeting them".

Swifts chairman Jarlath Faloon said that Dungannon had "absolutely no second thoughts" at pursuing liquidation.

"The board of Dungannon Swifts is absolutely infuriated with the treatment we have received from the Derry City board," he said.

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