At the Brink: Administrator or Stooge? (1 Viewer)

[TheOldFive]

Can anyone explain to me why does liquidation inevitably have to be the outcome of the CVA not being accepted on 2nd August?

This, as declared by Administrator Appleton sounds at odds with the interests of creditors who are not wanting to sign off because quite frankly he has not done a good enough job of meeting their needs in achieving a suitable outcome from which to exit Administration. We can be in Admin for a good while longer. Why the brinksmanship of another bullshit deadline?

Try harder Mr Appleton, and in the meantime properly discharge your responsibilities as custodian of the Club whilst it is in Administration and insist on the best commercial outcome for all parties at this time in the short term, by advising the Football League that Coventry City will commence their home game fixtures this coming season at The Ricoh Arena. You have the power to execute that arrangement in precisely the way that you did for the final home games of last season, and no material circumstances have changed that should dissuade you from maintaining a consistent approach on that matter.

Unless.... Well, I can't think of a reason... Can you?

 

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[Bluegloucester]

Great post, so true.

 

[Broken Hearted Sky Blue]

Can anyone explain to me why does liquidation inevitably have to be the outcome of the CVA not being accepted on 2nd August?

This, as declared by Administrator Appleton sounds at odds with the interests of creditors who are not wanting to sign off because quite frankly he has not done a good enough job of meeting their needs in achieving a suitable outcome from which to exit Administration. We can be in Admin for a good while longer. Why the brinksmanship of another bullshit deadline?

Try harder Mr Appleton, and in the meantime properly discharge your responsibilities as custodian of the Club whilst it is in Administration and insist on the best commercial outcome for all parties at this time in the short term, by advising the Football League that Coventry City will commence their home game fixtures this coming season at The Ricoh Arena. You have the power to execute that arrangement in precisely the way that you did for the final home games of last season, and no material circumstances have changed that should dissuade you from maintaining a consistent approach on that matter.

Unless.... Well, I can't think of a reason... Can you?

I can

 

[dadgad]

Yep, been thinking - and saying - the same since forever.

This was a stitch up that made no financial sense whatsoever for the business going forward.

The FL should have jumped all over this. Why didn't they? This caveat - we don't get involved in 3rd party disputes. Bollocks.

 

[TheOldFive]

I'm trying to figure out the distinct sense of déjà vu I'm experiencing from the Administrator's self ordained sense of bullshit urgency, it's almost as if he's taking a leaf from the Sisu playbook. Shame he wasn't operating with quite the same pace earlier on in the process, it's almost as if the rush at the end is engineered to force one outcome over another.

 

[Bennets Afro]

3rd party... The FL have basically backed Sisu and said what they have done is ok

 

[TheOldFive]

I can

Go On....

 

[Broken Hearted Sky Blue]

Go On....

 

[TheOldFive]

Ahh. *Nods*

 

[RegTheDonk]

Yep, been thinking - and saying - the same since forever.

This was a stitch up that made no financial sense whatsoever for the business going forward.

The FL should have jumped all over this. Why didn't they? This caveat - we don't get involved in 3rd party disputes. Bollocks.

I think SISU have the FL by the bollocks.

 

[Broken Hearted Sky Blue]

I think SISU have the FL by the bollocks.

No they haven't

 

[stupot07]

Can anyone explain to me why does liquidation inevitably have to be the outcome of the CVA not being accepted on 2nd August?

This, as declared by Administrator Appleton sounds at odds with the interests of creditors who are not wanting to sign off because quite frankly he has not done a good enough job of meeting their needs in achieving a suitable outcome from which to exit Administration. We can be in Admin for a good while longer. Why the brinksmanship of another bullshit deadline?

Try harder Mr Appleton, and in the meantime properly discharge your responsibilities as custodian of the Club whilst it is in Administration and insist on the best commercial outcome for all parties at this time in the short term, by advising the Football League that Coventry City will commence their home game fixtures this coming season at The Ricoh Arena. You have the power to execute that arrangement in precisely the way that you did for the final home games of last season, and no material circumstances have changed that should dissuade you from maintaining a consistent approach on that matter.

Unless.... Well, I can't think of a reason... Can you?

Because all of the emphasis has been on whether ACL will or will not sign the CVA, people have forgotten that sisu through ARVO are the biggest creditors, and if the administrator said lets go with option 2 they wouldn't sign off the CVA. This is probably why it's CVA or liquidation.

 

[skybluericoh]

I think SISU have the FL by the bollocks.

That would be hard. Isn't part of the problem the FL haven't got any?

 

[skybluericoh]

Because all of the emphasis has been on whether ACL will or will not sign the CVA, people have forgotten that sisu through ARVO are the biggest creditors, and if the administrator said lets go with option 2 they wouldn't sign off the CVA. This is probably why it's CVA or liquidation.

But isn't it the independent creditor that has the bigger vote?

 

[stupot07]

But isn't it the independent creditor that has the bigger vote?

I have no idea, but you do need 75% of the vote from the creditors.

I do remember reading somewhere that as the only non-connected creditor they can block the CVA but whether they can force though a CVA against ARVO's wishes I very much doubt.

 

[skybluericoh]

I have no idea, but you do need 75% of the vote from the creditors.

I'm pretty sure that why Leeds ended up with extra points deductions. Ken Bates tried to force through a CVA that was benificial to the existing owners, and less so for the independent creditors. The thing is though how much is owed to SISU etc by Ltd? In one breath is 70 million, the next it is a none asset holding, none trading property arm of the club not worth anything, in which case ACL are the only creditor.

 

[georgehudson]

the general consensus of opinion is that Mr. Appleton is not fit to do the job,
imho, of course,
so, why have the FL not taken action,
so, who is complicit in the way things have gone ?

 

[stupot07]

I'm pretty sure that why Leeds ended up with extra points deductions. Ken Bates tried to force through a CVA that was benificial to the existing owners, and less so for the independent creditors. The thing is though how much is owed to SISU etc by Ltd? In one breath is 70 million, the next it is a none asset holding, none trading property arm of the club not worth anything, in which case ACL are the only creditor.

God knows, but I doubt that they would leave ACL as the only creditor calling the shots.

The report said:

The report claims Sisu's parent company of CCFC Holdings, Sky Blue Sports and Leisure, is owed £14m; Holdings £44m; ACL £636,381 (which deducts matchday costs paid to ACL over the last year); and Arvo is owed £10.2m.

It leaves estimated total liabilities of £69,727,625.

To be honest I have no idea why Richardson et al created Ltd when they already had holdings. If everything was in 1 company we'd probably have new owners and had come out of admin.

 

[stupot07]

the general consensus of opinion is that Mr. Appleton is not fit to do the job,
imho, of course,
so, why have the FL not taken action,
so, who is complicit in the way things have gone ?

But that's because he hasn't done what most cov fans want and sell Ltd to PH4.

Appleton is an officer of the court and is doing his job within the law on behalf of the creditors. He's just become the latest scapegoat.

 

[mark82]

If the CVA is rejected and we are liquidated what happens to the debt to SISU? Surely they get much less too? Anyone know?

 

[Bennets Afro]

Stupot07 if you don't know why a holdings company was formed and what is purpose is then I suggest you go and google it. It's not hard!!!!

 

[WiganSkyBlue]

Because all of the emphasis has been on whether ACL will or will not sign the CVA, people have forgotten that sisu through ARVO are the biggest creditors, and if the administrator said lets go with option 2 they wouldn't sign off the CVA. This is probably why it's CVA or liquidation.

Forgive me, is the Administrator's option 2 to sell to a.n.other, in which case ARVO won't sign off the CVA and so liquidation? Isn't this the exact position/dilemma ACL are in? Have I missed something? Genuine questions.