DARLINGTON Football Club is expected to emerge from administration this week with former chairman George Houghton still in control.

Negotiations were continuing last night. Officials hope they can make an announcement this morning, bringing the club’s three months of uncertainty to an end.

Under the plan, former Middlesbrough boss Colin Todd, who was appointed manager at Bradford City when they were in administration, will take on the same position at the Quakers.

Mr Houghton put the club into administration in February citing a series of reasons, mainly sparked by the credit crunch and his frustration at not being able to make progress with development plans. Since coming to Darlington in 2006, when he wiped out the previous debt, Mr Houghton ran up a £5m deficit at the club. When he apparently called time at the end of February, it was losing £54,000 a week.

The move angered fans who felt he had taken away the club’s best chance of promotion in nearly 20 years.

The ten-point penalty automatically imposed on the club dropped the Quakers out of the promotion play-off places.

Mr Houghton, who has been unable to find any investment, is expected to return as chairman to safeguard his £3m-plus investment.

David Jones, a former director of the club, said: “George has been attempting to put together a financial package, some of which includes him and some of which does not include him.

“We hope things are finalised on Wednesday.”

The only other firm offer came from former vice-chairman Raj Singh, whose bid was rejected by the administrator as “unworkable”.

The Northern Echo can reveal that Mr Singh’s plan foundered when he was unable to reach a deal with Mr Houghton, who still has control of the stadium and land.

James Moore, from solicitors Walker Morris, said the process of emerging from administration would take at least two months to complete.

A prospective new owner must sign an exclusivity agreement that prevents any other buyer coming in for up to eight weeks, enabling a sale agreement, including a company voluntary arrangement (CVA) with creditors, to be produced.

Mr Moore expected the CVA would be passed without the club suffering any further points deduction, because the Inland Revenue is owed less than 25 per cent of the debt.

If the CVA is not passed, the Football League’s Sporting Sanctions Appeal Panel will determine a penalty likely to be a 17-point deduction from next season.

A new owner would also be subject to Football League approval under the fit and proper persons’ test.

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