Administration Meeting 2/8/13 Official Thread (2 Viewers)

Sky Blues said:

Updated report in the CT, with quotes from CCFC, ACL, Paul Appleton and Sky Blue Trust:

Coventry City Ltd moves towards liquidation after ACL turn down administrator's offer
http://www.coventrytelegraph.net/news/coventry-news/coventry-city-ltd-moves-towards-5431504


London meeting lasts just ten minutes - club now awaits Football League to see if they are handed a 15-point penalty


A crucial Coventry City creditors' meeting this morning ended in ten minutes with Ricoh owners Arena Coventry Limited (ACL) rejecting proposals to exit administration.


The club is now moving towards liquidation.


All eyes will now be on the Football League to see what penalty will be imposed, which could be a 15-point deduction from Coventry City's League One campaign, which starts tomorrow.


It is understood the League will meet today to discuss City's fate.


ACL's rejection of Mr Appleton's Company Voluntary Arrangement (CVA), which would have brought the club out of administration, means ACL will not get a 590k return on the Sky Blues rent debt.


ACL is joint owned by the council and the Alan Edward Higgs Charity.


The Telegraph understands Peter Knatchbull-Hugessen, on behalf of the Alan Higgs Centre Trust, voted for the CVA, as did Sky Blues owner Sisu's related companies.


Coventry City Football Club released the following statement: "It is with great regret that a proposed Company Voluntary Agreement (CVA) has been rejected by Arena Coventry Limited (ACL).


"It means CCFC Ltd is likely to be put into liquidation which is expected to result in a points penalty for the club going into the new season.


"The football club and the Alan Higgs Centre Trust accepted the administrator’s CVA, but the City Council, through ACL, have chosen to reject it – leading to possible liquidation and the risk of a 15-point deduction.


"The club will hold urgent meetings with the Football League this afternoon to go through the next steps for the football club."


ACL also come out with a statment: “The Board of ACL was informed that its amendments to the CVA were not accepted. They were therefore asked to vote on the proposals put forward by the Administrator Paul Appleton.


“ACL, jointly owned by the Alan Edward Higgs Charity and Coventry City Council, voted not to approve the Administrator’s proposals.


“This decision was based on ACL’s twin aims: first, to keep Coventry City Football Club playing in Coventry; and second, to ensure that Coventry City Football Club is financially viable for the next few years and beyond. This last point is especially important given that CCFC has been the subject of a ‘catastrophic insolvency’ in the hands of its previous owners.


“The CVA proposals put forward by Mr Appleton simply do not address these obvious concerns. And these concerns are not only the concerns of ACL – they are the concerns of all Sky Blues’ supporters, and should be the central concerns of both The Football League and The Football Association.


“Mr Appleton has the ability to put forward new proposals, and we would welcome these as soon as possible.”


Mr Appleton said: "At today's reconvened creditors' meeting, all parties except Arena Coventry Limited and HMRC accepted the CVA proposals.


"At the meeting held on Tuesday, ACL had put forward modifications that were not compliant with the terms of the Insolvency Act and Rules. This was explained to both them and their legal representatives at the time.


"The adjournment provided them with an opportunity to put forward modifications that were compliant with the law in order to make use of the time made available by the adjournment that they themselves proposed.


"However, despite being given this further opportunity, they declined. Accordingly, when asked whether they were in favour or not of the Proposals, ACL confirmed their rejection.


"Therefore, the CVA has been rejected."


Reacting to ACL's statement, Mr Appleton added: "I have noted ACL's statement released today with some interest.


"Put simply, we do not understand the comments being made by ACL with regard to the ability to put forward new proposals.


"As I said in my earlier statement, the proposals ACL required simply did not comply with the law. They were offered the chance to submit modifications, which DID comply with the law, yet for reasons best known to themselves, they chose not to do so.


"The Company will now proceed according to our proposals made as Administrator that were accepted by the majority of creditors including ACL."


A statement from The Sky Blue Trust reads: "The Sky Blue Trust are appalled at the latest turn of events. Liquidation poses the most serious threat to the future of our Club. Where today's liquidation leaves our club, we don't yet know. The Football League have not issued a verdict yet, but it has consistently failed to make decisions that have taken into account the views of the supporters and the community that sustain our Club. It has failed to stand up to the bullying and alleged legal threats coming from SISU, and it has still failed to investigate the role of Joy Seppala as a shadow director.


"Today's publication of documents purporting to show that administrator Paul Appleton and SISU itself must have known all along where the Golden Share of the Football League lay all along is another area of deep concern for us which we call on the League to investigate.


"We call upon all those involved to pause for thought before taking any further action. Please don't make a bad situation any worse. We urge the League not to take precipitate action to award the share to Otium. They must give full consideration to the detailed representations the Trust has made to them, in a detailed, evidenced dossier, before they take any decisions.


"We would implore you all to finally look seriously at your responsibilities and act accordingly – what is needed now is the right action not a knee jerk reaction. The future long term viability of Coventry City must be the over riding criteria. Your actions will now be judged by thousands of Sky Blue fans and the world of football in general at a most critical time.


"Do not compound your mistakes. Do the right thing."

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