The 'legal continuation' nonsense is easily shot down. What follows is an edited version of a post made by SW16girl (solicitor, Crystal Palace fan and all-round legal eagle) on the Concrete Roundabout site on the 11th August 2011. We've nailed this so many times over the years, but this is the most recent piece I can source:
The assets of the club were bought by a NewCo called Milton Keynes Dons Ltd which was incorporated on 04-06-03 under a different name Lawgra (No1028) Limited and changed its name on 24-02-04.
Do a Webcheck for company number 04787003 at the Companies House link above.
That is what happens every time a club goes into administration. Like it or not it is a NewCo and dodgy builders/double-glazing firms have a habit of doing it to get rid of the debt - if it wasn't legally a NewCo then the whole administration thing wouldn't work. The only reason that the Newco is seen as being the same entity is:
a. Because everyone thinks it is because it is in the same place, has the same kit, the same name and the same fans.
b. It plays in the same place in the league. This however is only because the FL transfer the "golden ticket" of a league place to the new Company which they will do if certain criteria are met. They are not however obliged to do so as it is not the same legal entity.
You can argue over names etc to your hearts content but you should get the legal situation accurate at least."