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Huge news for Southend United as day goes from High Court appearance to positive talks

Huge news for Southend United as the day goes from a High Court appearance to positive being talks held over the club’s future.

Southend United has seen their winding up petition officially dismissed after a hearing at the High Court on Wednesday morning.

And by the evening of the same day, it has been confirmed that new heads of terms have been agreed between Southend City Council and Citizen Housing.

Council leader Daniel Cowan says ‘Heads of Terms’ agreement has been made with the developer of properties at city’s Fossetts Farm; ‘due diligence’ now to take place, and hopes that building plans can be ‘decoupled’ from sale of Southend United Football Club to the new owners. A statement in full can be read further down in this article.

It’s been quite a rollercoaster of a week already for the club, with the National League recently telling Southend United to provide a £1m bond in order to compete in the new season because of uncertainty over their financial situation.

Club chairman, Ron Martin, was in attendance for the rescheduled hearing after being allowed an extra month to settle debts with the legal firm Stewarts Law LLP and a former club sponsor.

The night before the hearing, the legal firm confirmed that they have come to a settlement with Southend United in respect of their outstanding legal fees.

They asked the court to dismiss their petition at Wednesday’s hearing.

The hearing, which took place around 10:30am having been second on the list, lasted less than two minutes.

As mentioned, Stewarts Law have settled theirs, and now attention turned to PG Site Services, with Chris Phillips of Southend Echo believing they were owed around £350,000.

He said via his live blog on the rest of the hearing: “Apparently a deal [regarding PG Site Services was struck was just minutes before hearing got underway.

“Ron Martin was alongside a lady who was on the phone for a minute or two before the judge entered the room.

“So now all eyes are now back on the consortium trying to complete their deal for the club.

“Have also contacted the league to try and confirm what needs to happen from here for the transfer embargo to be lifted.

“Still a lot to be sorted.

“Just been told that all parties involved will be in the same room this afternoon to try and get the takeover finalised.”

PG Site Services said it was “in the interest of the club’s future we agreed a reduction and have trusted them to keep to the payment plan agreed” with Dave Goodger, manager director of PG Site Services, said in a statement to Southend Echo that he agreed to a payment plan over the next 11 weeks to allow the club to proceed with less issues and added “We could have continued with our legal action against SUFC and no doubt it would have forced COSU to pay us off in full on completion expected this Friday. But in the interest of the club’s future we agreed a reduction and have trusted them to keep to the payment plan agreed.”

COUNCIL LEADER DANIEL COWAN:

For far too long, the future of Southend United Football Club has hung in the balance. Today, supporters and the club breathed a sigh of relief as the Winding Up Petition was dismissed.

However, the Elm bond the National League has demanded be paid imminently is still an issue for the club.

Since taking up the Leadership of Southend-on-Sea City Council, I have felt that the ‘decoupling’ of the land transaction from the sale of the football club is the best way forward as it enables us to negotiate a fair and reasonable property deal for the city without an impending existential threat to the club hanging over us. The Consortium have tabled the option of decoupling to the current owners, and I fully support them in this proposal. It is the best option to secure the club and stave off the threat from the National League’s demands and that must be agreed between COSU and Ron Martin urgently.

Last night, I spoke with Ron Martin and during a frank and unfettered but fair and respectful exchange, I made it clear that my patience had run out. We agreed that the council has been flexible in trying to negotiate a deal that protects our interests and the future of the club. We agreed that the last proposal failed extensive Due Diligence and that the council’s proposal to pivot to a low-rise residential scheme is an all-round better proposition. We agreed that enough was enough and that today, upon receipt of a workable, best and final offer, we could conclude negotiations on Heads of Terms and progress to Due Diligence.

I am delighted to confirm that new Heads of Terms have been agreed with Citizen Housing.

These new Heads of Terms are a significant improvement on the Heads of Terms I inherited when I became Leader of the Council 5 weeks ago. We cannot foretell the outcome of Due Diligence, but the proposal is in a much healthier place in every aspect, and that gives us more confidence that we can pass the next hurdle.

Eyes now turn to the completion of the decoupling and I hope that the Consortium’s fair demands can be met.

I want to take this opportunity to publicly thank our incredible council officers for their Herculean efforts in getting us to this point. I cannot understate how hard they have worked, round the clock, under immense pressure and undue criticism at times, to agree Heads of Terms that if they progress to an Agreement for Lease is an immeasurably better prospect for the city than the proposal that failed Due Diligence earlier this month.

There is still much work to do as we progress through Due Diligence, but I am confident in the utmost professionalism and ability of my officers to get us through that work.

As and when I have further news, I will, of course, update you again.

Ron Martin met members of COSU and the local council to discuss the takeover and how to get matters resolved regarding housing development at Fossetts Farm, the location he had previously planned to relocate Southend United.

“I hope we will reach an agreement,” he said. “That’s what we all want to do, but it’s important that we reach the right agreement.”

The Custodians of Southend United (COSU), a group led by Australian entrepreneur Justin Rees, said on Tuesday that they hoped to complete its takeover immediately and “allow the housing negotiations and due diligence at Fossetts to continue subsequently”. They also criticised the National League’s decision to force Southend to provide a bond.

COSU, aiming to acquire the club, said the bond put to the club by the National League had complicated their efforts to take over.

“At a time when the wider football world is voicing concerns surrounding the future of Southend United Football Club, it’s remarkable that our league is only making the situation more difficult to resolve,” it said.

Southend’s supporters group ‘Shrimpers Trust’ urged the National League to “show compassion” and has urged Martin to “take this deal or lose everything”.

The Trust said: “As the situation around Southend United becomes more complex, it gets harder to find the clarity needed to digest, process and reiterate that this wonderful football club stretches beyond lease agreements, debt and turmoil. We have to remind ourselves of its history and the memories we cherish, because the present is traumatic.”

Twitter users reacted to the huge news for Southend United as the day goes from High Court appearance to positive talks being held and a breakthrough…

@BowendjDan: Go on Cowan. You have been unreal since coming in! Keep it up

@AndyRFCCharman: Having achieved that, perhaps you could step up a couple of leagues (in all senses) and have frank words on our behalf with Dodgy Dai owner/destroyer of #readingfc

@CarefreeJonty: Daniel you are a hero. The work you have conducted is immense. Keep it up

@plbacon: Great job, patience of a saint dealing with Martin

@j_j_thekangaroo: Cowan, you’re the one and you still turn me on.

@AdrianJHopkins: This is a positive statement, Daniel. Final negotiations between COSU and the Martin’s still to be agreed, including RH ownership, over to you Ron!! I guess we will get a look at the revised Heads of Terms in due course. A day of progress, at last.

@mjshrimper: We’re going to have to name a stand after you, Daniel!!!! Is it “cans”? It sounds like it might be…should I crack one open just in case?

@CharlieMullard: We are Southend United! Massive news! Cannot wait to be rid of the 🐀 and welcome COSU with open arms 🙌🏼

@Kaylalula: Excellent news. I look forward to the Club decoupling from Ron with immense pleasure. Well done to all involved today and thank you to @CllrCowan for everything you are doing for the Club and its supporters and the people of Southend.

@msjenmac: 💙🦐 just wanted to say, for the first time in a long time Southend has a Labour led council and THIS is the difference. I don’t doubt though, that the late Sir David Amess would also be pleased as he adored the place and he worked so hard. This is for the city! #SouthendUnited

@Browny_90: Fair play to this fella. Seems to have come in and finally given certain people in Southend a kick up the arse.

@Ryan17421962: Thank fuck for that

@finnmooro7: It’s actually happening omg

@euniesufc: Another step closer 🫡

@danfairless97: It’s fucking happening 😭😭😭😭😭

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