oldskyblue58
CCFC Finance Director
Questions - is giving the golden share to Otium a New Co situation in the Football League Insolvency policy?. What is different to say the Rangers situation in Scotland ? (to be clear I have no desire to see CCFC relegated 3 divisions)
Otium is a brand new company in that it has never traded until now, irrespective of who owns the shares in Otium it is a seperate legal entity, it now owns assets that were sitting with the football club in CCFC Ltd and CCFC H Ltd. So does that indicate a "new Co" situation?
Why do I ask? well FL Insolvency policy requires a number of things for a New Co.
- detailed financial information including opening balance sheet
- monthly financial reports
- cashflow info for 12 months
- full details of any financial arrangements with any group members
- a minimum of £500k issued share capital (for L1 teams)
- cost of acquiring "Old Co" assets to be paid in cash or by interest free loans not repayable for at least 12 mths
- all football debts from "Old Co" (CCFC Ltd & CCFCH Ltd) transferred to New Co and paid
- that the "New Co" has security of tenure for a minimum of 10 years
- any player sale/purchase/loan has prior written consent from the FL for 3 seasons
- plus other regulations either written in the insovency policy or thought up at the discretion of the Board
So is the Otium situation a New Co and if so have they complied with the details of the Insolvency Policy
It could be viewed as a continuation of the Old business but please explain how
However if it is the New Co situation have the FL complied with their insolvency policy
oh and guess what the Insolvency Policy states
" this document does not and cannot cover every eventuality and the Board reserve the right to review and amend the procedures for each individual case" Are the above terms or proceedures?
If they are terms or conditions not procedures then the policy states the Board may impose further conditions to the ones stated it doesnt actually say it can reduce those terms
Otium is a brand new company in that it has never traded until now, irrespective of who owns the shares in Otium it is a seperate legal entity, it now owns assets that were sitting with the football club in CCFC Ltd and CCFC H Ltd. So does that indicate a "new Co" situation?
Why do I ask? well FL Insolvency policy requires a number of things for a New Co.
- detailed financial information including opening balance sheet
- monthly financial reports
- cashflow info for 12 months
- full details of any financial arrangements with any group members
- a minimum of £500k issued share capital (for L1 teams)
- cost of acquiring "Old Co" assets to be paid in cash or by interest free loans not repayable for at least 12 mths
- all football debts from "Old Co" (CCFC Ltd & CCFCH Ltd) transferred to New Co and paid
- that the "New Co" has security of tenure for a minimum of 10 years
- any player sale/purchase/loan has prior written consent from the FL for 3 seasons
- plus other regulations either written in the insovency policy or thought up at the discretion of the Board
So is the Otium situation a New Co and if so have they complied with the details of the Insolvency Policy
It could be viewed as a continuation of the Old business but please explain how
However if it is the New Co situation have the FL complied with their insolvency policy
oh and guess what the Insolvency Policy states
" this document does not and cannot cover every eventuality and the Board reserve the right to review and amend the procedures for each individual case" Are the above terms or proceedures?
If they are terms or conditions not procedures then the policy states the Board may impose further conditions to the ones stated it doesnt actually say it can reduce those terms
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