Official receiver will investigate Edennote

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The Independent Online
OFFICIAL receivers are to investigate the collapse of Terry Venables' company Edennote after a High Court judge said there were matters that warranted further investigation.

Edennote was compulsorily wound up yesterday following a High Court petition brought by Tottenham Hotspur, Alan Sugar, the club's chairman, and Mr Sugar's private company, Amshold Ltd.

In his judgment, Mr Justice Rattee referred to the fact that Edennote assets had been charged to Mr Venables personally and to his solicitors at the time. This, Tottenham alleges, gave them an improper preference over other creditors.

The judge said that this matter warranted further investigation by the receiver.

It was also stated in court that in March, while the winding up petition was in progress, Mr Venables' shares in Edennote were transferred to Terence Venables Holdings Limited. This could defeat a receiver's efforts to recover pounds 37,500 of still unpaid share capital for distribution among Edennote's creditors. The judge awarded costs against Edennote and left open the possibility that Mr Venables may be personally liable.

Tottenham claims that the current England manager owes the club up to pounds 335,000 in legal costs that stem from Mr Venables' failed High Court action last year after he was dismissed as chief executive by Mr Sugar.

An official receiver will now be appointed to conduct an investigation into Edennote. The receiver's job will be to try to find out what creditors can be repaid and in what order.

Mr Venables' solicitors said that the action by the club was an attempt to stifle the breach of contract claim that the England manager intended to take against Tottenham.

If he wishes to proceed with the case through Edennote, Mr Venables will now have to gain the consent of the official receiver before doing so.