CCFC ltd out of administration in 3 weeks

Discussion in 'Coventry City General Chat' started by covhead1, Jun 15, 2013.

  1. covhead1

    covhead1 Well-Known Member

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    Sale To Be Concluded In Three Weeks
    According to the Coventry Telegraph's Les Reid, Coventry City Football Club Ltd could be out of administration in three weeks.
    Mr Reid has tweeted; "ACL & #CCFC sources expect earliest for Ltd sale & end of admin is 3 weeks."
     
  2. oldskyblue58

    oldskyblue58 CCFC Finance Director

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    doesnt it actually say that it will be at least 3 weeks before exit from administration?
     
  3. Sky Blues

    Sky Blues Well-Known Member

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    Questions:
    1. If Coventry City Football Club Limited does not exit administration via liquidation the lease remains - therefore, if, once Holding has obtained the golden share, Otium and/or Coventry City Football Club Limited are liquidated to kill the lease, will the club be hit by another 10-point penalty by the league?

    2. Can the Football League judge whether Otium Entertainment are fit and proper owners if there are no up-to-date accounts on which to judge them?

    3. How was the administrator able to be sure the creditors would receive the return promised by Otium Entertainment when that company's latest accounts are overdue?
    (I'm not saying the administrator did anything wrong, just wondering what devices he would have used to satisfy himself that the bid was sound and genuine)
     
  4. ericagradus

    ericagradus Member

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    1. There will be a forfeiture clause in the lease, which will give the landlord the right to terminate the lease for a number of reasons ie breach of covenant, non payment of rent, insolvency. From landlords actions, lease has already been terminated. So the lease will not remain
     
  5. dongonzalos

    dongonzalos Well-Known Member

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    Give the landlord the right.......
     
  6. Grendel

    Grendel Well-Known Member

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    Oh I think once out of administration liquidation will swiftly follow, don't you?
     
  7. dongonzalos

    dongonzalos Well-Known Member

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    So the penalty for that?
     
  8. dongonzalos

    dongonzalos Well-Known Member

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    Are we talking a club, in Walsall for example with at a push 1000 Coventry fans playing on the back of -15
    Points.
    SISU played a blinder I think you maybe right.
     
  9. Grendel

    Grendel Well-Known Member

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    None. Holdings own the right to play football and the players. The lease will be wound up allowing holdings to negotiate a totally different lease with ACL.
     
  10. Grendel

    Grendel Well-Known Member

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    Please explain why it's minis 15 points?
     
  11. dongonzalos

    dongonzalos Well-Known Member

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    Liquidation of part of the football club
     
  12. Grendel

    Grendel Well-Known Member

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    No chance. In fact we had had minus 15 points for any other scenario than what has taken place. Sisu will ensure with correspondence through the football league that they are entitled to close ltd with no further negative consequences.
     
  13. Sky Blues

    Sky Blues Well-Known Member

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    Thanks Erica. I know you know your stuff when it comes to property law. Would the landlord seeking administration of the tenant be the "landlords actions" you refer to?
     
  14. WillieStanley

    WillieStanley Active Member

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    The leaugue share would have been transfered to Holdings with the only thing left in Ltd being the agreement with ACL. What part of the club will have been liquidated?
     
  15. Sky Blues

    Sky Blues Well-Known Member

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    If CCFC Ltd is liquidated then, based on Football League rules, it appears we might suffer another 10-point penalty:

    12.3.2 If a Group Undertaking of a Club becomes subject to or suffers an Insolvency Event, then the Board shall have the power to impose upon the Club a deduction of 10 points scored or to be scored in the League Competition. In exercising this power the Board shall have regard to all the circumstances of the case and to:
    (a) such of the provisions of the Insolvency Act, the Competition Act 1998 and the Enterprise Act 2002 as are relevant and then in force;
    (b) the need to protect the integrity and continuity of the League Competition;
    (c) the reputation of The League and the need to promote the game of association football generally; and
    (d) the relationship between the Club and the Group Undertaking.

    Having said that, based on what Erica said, Sisu don't need to liquidate Ltd to break the lease as it has already been broken. Therefore, I suppose they could just merge Ltd with Holdings if they wanted to remove Ltd and tidy things up.
     
  16. Grendel

    Grendel Well-Known Member

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    No part. Actually I wouldn't be surprised if the league do not formally and publically back the club and the liquidation.
     
  17. Grendel

    Grendel Well-Known Member

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    The league will have in advance approved and supported the action.
     
  18. Sky Blues

    Sky Blues Well-Known Member

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    So you think the league would treat the liquidation of CCFC Ltd after exiting administration as part of one unbroken insolvency event then?
    Until I read what Erica had to say, I agreed with you that liquidation of Ltd was likely but now I'm not so sure. Why liquidate Ltd if you don't need to to break the lease? Surely you can just merge it out of existence if you want to get rid of it?
     
  19. Grendel

    Grendel Well-Known Member

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    Oh I agree if you do not have to to break the lease it will become a dormant company.

    Either way the lease will be dead and there is no penalty to the club.
     
  20. Sky Blues

    Sky Blues Well-Known Member

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    We agree on something again. This is getting worrying! :o ;)
     
  21. ericagradus

    ericagradus Member

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    My point is that, the Landlord's action, suggest that this right in what ever form (non payment of rent/breach of covenant) has already been exercised
     
  22. lordsummerisle

    lordsummerisle Well-Known Member

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    Why can't we stay in admin for the next three years and take up the rent-free whilst in admin offer up from ACL?
     
  23. oldskyblue58

    oldskyblue58 CCFC Finance Director

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    Surely if ACL are making the offer to the administrator to allow CCFC to play rent free then the lease is still live. I do not think ACL have exercised any rights of termination, right now it is still one of the levers ACL have in proving to the FL that CCFC are not being forced out
     
  24. Jack Griffin

    Jack Griffin Active Member

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    Tim may have downloaded this form
    [​IMG]
     
  25. chiefdave

    chiefdave Well-Known Member

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    You could read it that way or you could read it as there's no valid lease anymore but we'll let you play here anyway for free while in admin. Why was there a requirement to have a seperate deal for the last 3 games of last season if there was a valid lease in place? The administrator surely shouldn't be coming in saying the rents too high I'm not paying that!

    Don't think until ACL make a statement we can be sure one way or the other.
     

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