When a company goes into administration the costs of the proceedings are met out of its assets. In the case of CCFC Ltd, we are led to believe that the company has no assets and its only income is from the holding company. One must assume that Paul Appleton of David Rubin Partners has received some assurances that money will be made available to cover their fees but where is this going to come from? Presumably from CCFC Holdings and ultimately SISU. Had the administrator been ACL's appointee, then I am not sure how this would have been funded.
The administrator has been given at least 6 weeks to unravel the finances of the club and the bill for this is likely to be hefty. Administration and legal fees at Portsmouth have been running at £300k per month so even if the administrator can deliver his report to the court in just 6 weeks, the bill for this could be in the region of £500k.
Going forward, nobody is sure what other companies are going to be dragged into this or how long the process will last. Can the club, taken as a whole, sustain £300k a month administration expenses? Doubtful. Can SISU fund it and will they want to?
By leaving the SISU appointed administrator in place, ACL appear to have opened up a pit into which SISU have little option but to throw money.
The administrator has been given at least 6 weeks to unravel the finances of the club and the bill for this is likely to be hefty. Administration and legal fees at Portsmouth have been running at £300k per month so even if the administrator can deliver his report to the court in just 6 weeks, the bill for this could be in the region of £500k.
Going forward, nobody is sure what other companies are going to be dragged into this or how long the process will last. Can the club, taken as a whole, sustain £300k a month administration expenses? Doubtful. Can SISU fund it and will they want to?
By leaving the SISU appointed administrator in place, ACL appear to have opened up a pit into which SISU have little option but to throw money.
