The way I understand it, and please bear in mind that this is based on media reports and not having viewed the actual rules, is that the rule is that any club subject to an insolvency event on the second Saturday in May would not be eligible for membership of the Conference for the forthcoming season. "Insolvency event" is defined as being in administration, having a company volunatry agreement (CVA) or - and this is key - having applied to go into administration.
While Northwich technically entered administration after the second Saturday in May, it is my understanding that they applied to go into it before that date. If that is the case, then they contravened the rule and should have been demoted, which would mean (although I'm no lawyer!) that we have a very good grounds for legal action.