ACL Statement on Administration Application

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ACL Statement on Administration Application

Postby Sky Blue Strawberry » Wed Mar 13, 2013 7:55 pm

The Board of Arena Coventry Limited (ACL) announces that it has made an application to the High Court in London to request that it make an administration order against Coventry City Football Club (CCFC). The application relates to CCFC's failure to pay ACL £1.3m in rent that ACL is lawfully owed for CCFC's use of the Ricoh Arena.

The application to the High Court now means that:
� At a date in the next few weeks, the High Court will consider CCFC's financial position, and whether it is fit to continue trading. If the High Court rules that this is not the case, CCFC will be placed into administration.
� If the High Court determines that CCFC should be placed into administration, the High Court will then appoint an administrator to sell CCFC to a buyer that is able to restore financial stability to the Club.
� It will provide for an interim period, pending the outcome of the hearing, during which other parties (including CCFC owner, Sisu) will be unable to wind-up or liquidate CCFC.

Nicholas Carter, Chairman, Arena Coventry Limited, said: "It is highly unfortunate that we have had to take this course of legal action. Had we not taken this action, then the alternative might have been catastrophic for CCFC.
"We are owed a considerable amount of money in rent arrears. While it is imperative that ACL takes action to recover these arrears and to stop the arrears growing, it is important for us to find a solution that can provide for the survival of the Sky Blues. Hopefully this action will ultimately put CCFC on a stable financial footing for the future.

"Following recent statements in the media from the CCFC's owners threatening the Club with liquidation, we are keen to stop this from happening. Our action prevents Sisu simply closing CCFC and walking away from the situation.

"We are, of course, well aware that under the current Football League regulations, CCFC will face a points deduction and we will do everything we can to ensure that the case is heard by the High Court before the end of the current season. While this opens up the possibility of a ten point deduction this season, the Board believes this is better than leaving CCFC facing a much larger deduction at the start of next season."

The decision to take this course of legal action follows the recent collapse of talks between ACL and Sisu in relation to rent arrears and future matchday revenue arrangements.

The ACL Board had previously put forward a Heads of Terms Agreement on 29 January 2013. This Agreement was discussed point by point in a series of meetings between the ACL Board and the three Club Directors and agreed verbally by all parties. The Club Directors, however, then proceeded to renege on this agreement.

Nicholas Carter added: "This legal action was unavoidable following CCFC's failure to accept what was a reasonable, fair and generous best and final offer on rent and matchday revenue arrangements. The Club's owners now have one final chance to pay debts lawfully due or face the possibility of being placed into administration by the High Court.

"Make no mistake; the Directors of ACL take very seriously their legal responsibilities to their shareholders to recoup the money that CCFC owes. ACL is a strong business with a track record of profitability which, through the fantastic Ricoh Arena facility, has played a big part in raising the profile of Coventry nationally and internationally.

"But at the same time we care deeply about the city's Football Club. We want to give it the best possible chance of survival in the Football League rather than face the prospect of liquidation."
-ENDS-

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Re: Clarke out

Postby dog rout 21 » Wed Mar 13, 2013 7:59 pm

Fucking ****.
ISUZU OUT!
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Re: ACL Statement on Administration Application

Postby The Yid » Wed Mar 13, 2013 8:27 pm

Who they fuck do they think they are?
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ACL Statement on Administration Application

Postby Realist » Wed Mar 13, 2013 8:29 pm

Dhinsa in!
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Re: ACL Statement on Administration Application

Postby The Yid » Wed Mar 13, 2013 8:51 pm

If a potential takeover really was on the cards as is being suggested, then surely a prospective owner would want a club in the highest division possible? If admin happens - why eliminate a possibility of promotion for the sake of a couple of weeks?

Sadly it sounds like more bullshit.
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Re: ACL Statement on Administration Application

Postby dog rout 21 » Wed Mar 13, 2013 8:59 pm

Only thing I'd say to that is we're effectively out of the race now anyway.
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Re: ACL Statement on Administration Application

Postby The Yid » Wed Mar 13, 2013 9:05 pm

What fucks me off is that they've done nothing but choke the life out of the club, and then all of a sudden they think they are 'doing it for the sake of the club'. They've just spent the last god knows how long saying they don't need the football club.

**** the lot of them. I hope they go bust.
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Re: ACL Statement on Administration Application

Postby The Englander » Wed Mar 13, 2013 9:15 pm

Spot on TY.
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Re: ACL Statement on Administration Application

Postby plastic scouser » Wed Mar 13, 2013 9:19 pm

Dangerous game acl are playing.... Stupid ****..

... Luckily I'm a bit drunk else I'd type a big duck off rant
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Re: ACL Statement on Administration Application

Postby Burf » Wed Mar 13, 2013 9:20 pm

Lets face it - we're going to fall short of the the playoffs this season anyway. And even making them is still a decent way from actually going up.

Far more logical to draw a line under this season, take the points hit, clear this totally untenable off the pitch mess up once and for all and crack on under new ownership. Assuming its not all bullshit of course. And assuming also that any incoming new owners are not equally as bad / inept / take your pick as SISU.

Fuck it - I have no idea anymore , but I know we can't go on like this much longer. Something's gotta give - let's get it over with.
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Re: ACL Statement on Administration Application

Postby Burf » Wed Mar 13, 2013 9:23 pm

But ... One thing comes to mind - the saying "be careful what you wish for , lest it comes true ..."

Only time will tell.
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Re: ACL Statement on Administration Application

Postby bolix » Wed Mar 13, 2013 10:40 pm

It was Fisher you dumb twats that spoke of "liquidation".
He works for sisu btw :idea:
By putting the club into Admin. this (liquidation) cannot happen.
What would you prefer?
Liquidation or Admin. with all the changes that this could bring? (potentially for the better)

Also, -10 points this year would be better than next.
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Re: ACL Statement on Administration Application

Postby skyblue025 » Wed Mar 13, 2013 10:47 pm

SISU have bought this on themselves. Played chicken with ACL and ACL have called their bluff.

Agree totally with Burf, it can't keep on as it is. SISU can't or wont pay the rent or accept the new terms offered. Thats not too say ACL are blameless in it all.

Just a massive cluster fuck that needs sorting out.
Last edited by skyblue025 on Wed Mar 13, 2013 10:55 pm, edited 1 time in total.
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Re: ACL Statement on Administration Application

Postby Burf » Wed Mar 13, 2013 10:53 pm

Apparently clubs only have until the 3rd week of March to declare entering administration though before any points deduction is deferred until the next season.
This season is done - dont fancy starting a season in League 1 on -10 .... That'd surely condemn us to another season down here ... Or worse ... ?
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Re: ACL Statement on Administration Application

Postby dog rout 21 » Wed Mar 13, 2013 10:54 pm

Burf wrote:Or worse ... ?


Another year of monotonous shit in the championship? [smilie=icon_mrhappy.gif]
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Re: ACL Statement on Administration Application

Postby Burf » Thu Mar 14, 2013 9:11 am

So uncle Joe is making noises about riding back into town along with some yank car-parts buddies to save the Sky Blues ... Isn't this the man who urged everyone to give their shares to SISU only a few years ago ... ?
Hmmm.
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ACL Statement on Administration Application

Postby Realist » Thu Mar 14, 2013 9:21 am

I just wish something would happen one way or another, because I'm sick of being in limbo.
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Re: ACL Statement on Administration Application

Postby AD » Thu Mar 14, 2013 11:10 am

The Yid wrote:Who they fuck do they think they are?


A company owed £1.3m and counting from a client who has and continues to steadfastly refuse to pay towards a facility they use for over twelve months. Would you not have taken legal action in this case?

Frankly I think it shows amazing restraint to have waited this long in the face of the provocation and moving goalposts SISU have given them.

Imagine if you'd bought a box for a game this season and refused to pay for it because you thought it was over-priced for your income and compared to prices at clubs at the same level. Do you think the club would still let you in, or wouldn't have issued a legal writ to reclaim money owed? Of course it would. And it would've done it many, many months ago.

Now, I don't believe ACL are doing this for the good of the club, it's to protect their own (and therefore also Coventry taxpayers) money and investment. By filing for admin they get to choose who the administrator is rather than the club. SISU's threat of liquidating the club has given them the opportunity to make it seem like a more generous act for the club than the alternative its own owners mooted for it.

But I think the timing of it does have the club in mind. Getting in the play-offs, while not impossible, is now an outside bet and with the loss of our main striker makes it much harder, but relegation isn't very likely even with -10 points, so rather the club suffer a points penalty now than next season.

I don't think the FA rules regarding taking the hit now rather than next season apply as that was designed to stop owners putting a club in admin to take penalties when they prefer, whereas this is a third party. But in case theydo it can be showed that with the club still having something to play for it isn't beneficial to them to be in admin and take -10 points now.

I'm also unsure of whether next season would also see a deduction if the wrangle isn't dealt with, as Portsmouth haven't had a points deduction this year.

Finally, this may not be the end of the saga. Which one of the many companies involved in the running of CCFC is responsible for the rent? Would this even mean the club itself being put into admin, let alone removing SISU from the helm?
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Re: ACL Statement on Administration Application

Postby AD » Thu Mar 14, 2013 11:37 am

Seems that the deadline for when points deductions are given only matter if the club is getting relegated anyway, so in this case even in April we'd get the -10 points this season:-

12.3.3 Subject to the provisions of Regulation 12.3.4 below, where the Club becomes subject to or suffers an Insolvency Event, or the Board impose a deduction in accordance with Regulation 12.3.2:

(a) during the Normal Playing Season but prior to 5.00pm on the fourth Thursday in March, the points deduction shall apply immediately;

(b) during the Normal Playing Season but after 5.00pm on the fourth Thursday in March, Regulation 12.3.4 shall apply; and

(c) outside the Normal Playing Season, the points deduction shall apply in respect of the following Season such that the Club starts that Season on minus 10 points (including in the Football Conference if appropriate).

12.3.4 Where the circumstances set out in Regulation 12.3.3(b) apply and at the end of that Season, having regard to the number of championship points awarded (ignoring any potential deduction):

(a) the Club would be relegated in accordance with Regulation 10.1.2(b) or 7.3, the points deduction will apply in the next following Season (including in the Football Conference if appropriate); or

(b) the Club would not be relegated as aforesaid, the points deduction will apply in that Season and Regulation 10.1.2(b) or 7.3 will then apply (if appropriate) following imposition of the points deduction.

12.3.5 For the avoidance of doubt, where a Club and/or Group Undertaking is subject to more than one of the procedures in Regulation 12.3.1 above during a process of compromising creditors (for example Administration followed by a Company Voluntary Arrangement), the Club shall only be deducted one set of 10 points, such deduction to apply with effect from the first Insolvency Event.
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Re: ACL Statement on Administration Application

Postby The Yid » Thu Mar 14, 2013 12:28 pm

Portsmouth are due to get their deduction once they leave administration, so it should come off this season I believe.

The thing that is the worst part is that ACL are now calling the shots on our season, when we still have a chance of getting play-offs (albeit quite slim). Why can't they wait a couple more weeks? It seems like a spiteful swipe that will only hurt the team but not so much SISU.

SISU have been rooting around looking at the original agreement for the Ricoh signed back in 2002, has that been the trigger for this? If so - is there are a further issue that we've yet to see?

If we did go to into Admin, ACL just become another creditor, which realistically is only going to get a tiny fraction of the money owed to them. What happens if SISU have planned for this eventually, and have such manoeuvred themselves into a position where they become the number 1 creditor? Then we will be really in the shit.
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