BURY FC look set to go into liquidation after owner Steve Dale defaulted on the company voluntary agreement set out to pay back debts.

Dale had been given a revised deadline of February 11 to meet the terms of the arrangement but has not come up with the necessary funds.

Steven Wiseglass, a director at Inquesta Corporate Recovery & Insolvency, the supervisor of the CVA, said: “The CVA has formerly defaulted and we will now be looking at taking the necessary action to deal with the default.

“No further comment can be made at this stage.”

Dale agreed last summer to pay back £2million to creditors but the six-month timeframe of the initial CVA expired on January 18.

He was then given until February 11 to settle debts but has now officially defaulted on the agreement.

That means debts totalling £5million, including to former players and HM Revenue and Customs, are due to be paid.

One potential course of action is that Wiseglass petitions for the club to be wound up as the CVA has failed to offer a viable future for the club.

Bury have already survived multiple winding-up petitions in recent months but this could be the final nail in the coffin for the 135-year-old two-time FA Cup winners.

Dale took over the debt-ridden club from Stewart Day for just £1 in December 2018, but after failing to satisfy the EFL he had the funds to take the Shakers forward they were kicked out of the league and into potential oblivion in August.

As recently as fortnight ago he told the Guardian he was in a position to rectify any issues with the CVA.

“Just finalising saving the club through the CVA and applying to play football next season,” he said.

The news brings the future of football in the town into even sharper focus. 

A consortium involving local businessmen have been looking at a solvent takeover from Dale while a new Bury AFC phoenix club have agreed an undisclosed groundshare agreement as they wait for news of their application to the North West Counties League. 

Entrepreneur Robert Benwell has also previously outlined his proposition of buying Gigg Lane out of liquidation and forming a new club at the Shakers' home.