Account Soon To Be Empty (2 Viewers)

[CovisGod]

Lifted from the @Coventry_City Twitter account, also seen people posting it on Facebook, don't shoot the messenger !

Account Soon To Be Empty
It is understood that an escrow account set up for Coventry City's monthly rent for their usuage of the Ricoh Arena, could be empty in a matter of months.
The account was set up as a form of financial protection for both the club and Arena Coventry Limited.
With the rent not being paid for the last three months, ACL have been forced to withdraw from this account and it is understood that there are only a couple of months worth left in the account.

 

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[ericagradus]

This would be asepwratw designated accound set up for ths rent deposit deed when the lease was entered into. It allows the Landlord to withdrawal from it when the tenant defaults under the lease. There is also an obligation on the tenant to maintain the account to the minimum amount. Which is normally the initial deposit. For example a quarters rent, 3 months.

 

[oldskyblue58]

well there was only ever a requirement for 500k to be on deposit so no great surprise........... details of this account were disclosed in the accounts filed by ccfc and acl .............. and we would then be back to where some thought we were ..... in default with no back up

 

[tisza]

Wasn't one of the points about filing accounts etc. with the Football League that the club could show it could complete next season's fixtures? So there must be something that shows they can pay the rent etc. for that period.

 

[ccfcway]

Wasn't one of the points about filing accounts etc. with the Football League that the club could show it could complete next season's fixtures? So there must be something that shows they can pay the rent etc. for that period.

Yer, they showed a picture of Keogh and Bigi holding up "for sale" signs

 

[sw88]

Hope they banked with Natwest or RBS as it will stay in our hands a little bit longer now

 

[wingy]

But does'nt it Break the Terms of the Lease??

 

[ajsccfc]

https://twitter.com/#!/Coventry_City

Where is this?

 

[shmmeee]

How is this news? We knew about this after muttons email.

In fact as that email predates the accounts being signed off, we don't even know if it's still accurate. It's very possible that the accounts being filed are a sign Sisu is sticking around for a bit and therefore would mean the escrow is renewed. Short of Sisu or Mutton confirming one way or another we won't know.

The way I see it te future is obviously very uncertain, my guess is that Sisu weren't sure if they would continue with us this season. This explains the accounts delay and the stadium talks. Relegation would obviously cause any owner to sit back and take stock.

The interesting question as ever if what's changed in the last week? Have they decided to make a go of promotion, or just keep us going until next close season or just put enough in or a few months in the hope that the stadium or takeover progresses in that time?

 

[Lord_Nampil]

a few months, isn't that when due Diligence on ACL finishes??

 

[CovisGod]

https://twitter.com/#!/Coventry_City

Where is this?

Apologeis this came from the @CityCoventry account not @CoventryCity, my mistake.

 

[ajsccfc]

So is it anything but a rumour at this stage? I don't really trust any news that starts 'it is understood'.

 

[wingy]

So is it anything but a rumour at this stage? I don't really trust any news that starts 'it is understood'.

ITS been featured on here AJ ,common knowledge Cloughie emailed mutton a couple of weeks back and got the reply that as yet we are not in arrears as ACL draw down the rent from this account ,2 months worth left ,it does break the conditions of our lease however.ITs in the BOARD section.