The future of the football club appears to be in the hands of the Football Association today and City’s CVA was revolked in court at yesterday’s hearing at the Manchester High Court.

The hearing came following an objection from HM Revenue & Custom’s to the CVA presented when the club came out of administration a few weeks ago. The court found in favour of the Revenue and City must now plead with the FA to allow them to register their affiliation in time for the new season that starts in just ten days time.

This latest twist in a shambolic pre-season that has allowed new manager Mick Wadsworth to see his new players in just one practice match with the other six games of the campaign postponed due to the lack of FA affiliation. There is also a possibility that the club may receive further points punishment to add to the -10 they would start the season with.

News from the football club has been almost non-existent during this latest saga but last night they issued the following press release.

Chester City Football Club Ltd in administration press release
On the 8th July 2009 in the High court of Justice, Chancellery Division in Manchester, HM revenue and Customs (HMRC) filed an application challenging the approval of the company voluntary arrangement (CVA) which was originally approved at a meeting of creditors held on the 11th June, 2009.

At a hearing held in the Manchester High Court and concluded today His Honour Judge Pelling QC ruled in favour of the application by HMRC in respect of a debt owed by Chester City Football Club Ltd to a connected creditor and revoked the approval of the CVA. Martin Shaw of Refresh Recovery Ltd, and the administrator in this matter stated that the decision by the Court, on the application of HMRC, is a setback to the new owners of the club.

However, we are actively talking with the Football Association in relation to the impact that this decision will have upon the transfer of the membership to the FA. The new owners and I are working with the Football Association to ensure that the club can commence playing matches when the new season starts on the 8th August, 2009.

Further communications will follow when appropriate. For further information please contact Refresh Recovery Ltd, Martin Shaw/Bill Brandon on 01695711200 or Turner Parkinson Solicitors’ Will Jones on 016 1833 1212.

The home friendly match against newly promote Premiership side Burnley on Thursday has been postponed. This is due to the ongoing problems the club have with their lack of FA affiliation. The club’s Administrators, Refresh Recovery, were in court today at the conclusion of a hearing regarding the CVA with representatives of HM Revenue and Customs. An announcement in expected in the next 24 hours.

Both Jay Harris (left) and David Mannix have received fines and bans from the Football Association after being found guilty of a breach of rule E8(a) which refers to betting on matches.

The case against Harris was the more serious of the two and involved betting on a match when he was playing for Accrington Stanley and also a bet on three games last season including City’s away trip to Bournemouth. He received a 12 month ban and a £5,500 fine.

Whilst an Accrington player, Mannix was charged with betting on an Acrington Stanley game against Bury on 3 May 2008, and has been banned for 10 months and received a £4,000 fine.

City’s managing director Bob Gray said: “They have to go and it is as simple as that as we cannot condone players betting on their own team to get beat. We’re taking the right steps through our solicitors and they will get what they deserve. If it’s a sackable offence, we will sack them.”

• FA Press Statement

The club have been advised by the Football Association compliance unit not to play any more pre-season friendlies as they are not affiliated to the FA since leaving administration. It appears the unit have concerns over the set-up regarding the new company that bought the club from administration.

On the latest crisis managing director Rob Gray told BBC Radio Merseyside: �We have to adhere to certain rules and regulations from the FA transferring the membership from the old company to the new company.”

�That’s what we’re working on as we speak. Our solicitors are in consultation with the FA to finalise all the relevant paperwork that needs to be processed.”

�Obviously that will be reverted and hopefully sooner rather than later we can rearrange our friendlies and carry on with the football we need to play.”

City have completed the signing of 26-year-old Uruguayan midfielder Fabian Yantorno on a one year deal. The South American player played under manager Mick Wadsworth at Gretna. He is expected to be included in the City squad that play at Marine on Saturday. As he holds a joint Italian/Uruguyan citizenship there should be no problems with a work permit.

Blues owner Steve Vaughan commented: �Mick Wadsworth has worked with this player before, and he knows only too well the flair and pace he possesses. We are sure that he will be one of the stars of this season.”

Wadsworth (left) said: “I am very excited about the signing of Fabian. As I keep saying it is almost unbelievable to have signed him because of his ability and the standards he is capable of. ”

“We are just waiting for international clearance to go through and once that is done, hopefully by the weekend, he will be able to start playing. The fans will be delighted with his ability, he is a very clever player who produces and scores goals.”

A Blues side containing mainly youth players and trialists won 3-1 at Connah’s Quay Nomads tonight as the pre-season got underway in front of a crowd of around 200 at Holywell Town’s ground.

In the Conference fixture list issued today the Blues have been given a trip to Essex for an away match at Grays Athletic on the opening day of the season, 8 August. This is followed on the Tuesday night with their first home match against newly promoted Gateshead.

The two derby matches against Wrexham are scheduled take place over the border on Saturday 25 September and at Deva Stadium on 13 February.

The Blues will enter the FA Trophy at the First Round Proper stage on 12 December. The regular season will end on 24 April with a home match against Crawley Town.

John Danby has agreed a new two-year deal to stay at Deva Stadium. The goalkeeper who last year created a new club record for consecutive appearances, was also runner-up to Ryan Lowe in the Player of the Year award.

Danby said: “I’ve been talking to Chester throughout the summer and I have been watching closely what was happening at the club.