I saw this posted an another web site and reproduce it here.

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To All Karate England Members

I am writing on behalf of the Board to update you on the latest position.

At our meeting on the 4th January, we discussed with Sport England a number of different options we might explore to help us secure a stable financial position going forward. One of the options open to us was entering into a Corporate Voluntary Agreement (CVA) with Karate England’s creditors. Sport England had told us that one of the precursors to resuming funding was that we devise a recovery plan which would have the effect of creating a zero balance on Karate England’s finances.

The Board sought advice on the CVA from three insolvency companies and this highlighted the risk of entering into a CVA which would quite likely fail due to the lack of certainty regarding income, taking in to account the Sport England position on financial input into a CVA and with Sport England funding not being reinstated. In addition, it is clear that members are not prepared to commit further registrations in the current situation.

We therefore believed the only viable option was that we inform all member associations, creditors and Sport England that Karate England 2005 Ltd should cease to trade and we notified Sport England of this decision on Friday and informed them that we would make a public announcement after the weekend . This is the course we have been advised to follow and we have done this with great reluctance.

We continue to recognise the importance and need for a National Governing Body for Karate and are proposing a new approach to Sport England which we believe could meet the need of Karate in the future, meet Sport England requirements and command broad support from the Karate family in England.

We believe this is best way forward and we will provide further details in the next few days and hope to have the opportunity to discuss the issues in full on 18 February.

Yours sincerely,


Bob Poynton
Karate England Company Secretary

31 January 2007