Thought it might be useful to post what the proceedure etc is so this link is helpful
https://www.gov.uk/statutory-demands/overview
It could have been worse, ACL could have gone straight to a winding up order - much like HMRC would or do. It is likely that ACL are working closely with their bank and the bank will want to allow as much time as needed to settle it but force SISU to the table.
Forget mcgoldrick lads
I would guess that ACL probably made an offer to CCFC/SISU to accept a lower rent so long as the club paid some of the arrears over a period of time. I would also guess this was rejected because their end game has nothing to do with the rent and everything to do with crippling ACL so that SISUpick up the whole site cheaply then sell it on for a profit thereby recouping their investors money.
Will be interesting to see SISU's next step. Either :
- they come to the table and negotiate a new rent deal and a settlement of the arrears or
- they could go in to administration which we all know could take a lot of time and still not pay the rent which could really tests ACL's cashflow. Although an administrator is liable for any debts whilst in charge so thats not quite so straight forward. Of course ACL would be within their rights to shut the doors on the club until settlement reached or
- they could let ACL wind them up
Certainly SISU are testing the Council, Charity and ACL nerve. Right now unless ACL cracks I dont see how CCFC wins in this.
OSB, how long can sisu hold out on paying, I like many instantly thought they will pay up with a minute to go of the 21 days, or can they come to the table with a minute to go to "start" discussions on an agreement.?
In my opinion they will take the longest drawn out route possible.
With the current cost base and ongoing losses - an administrator won't want to run this for long at all
Cyrus Christie ,Joe Murphy for starters.21 days takes us to Boxing Day. Assuming Sisu decided to hold out until the very last minute, I doubt there will be a court open then, or even, possibly, into the New Year but when they do open ACL would surely be at the front of the line - just as the transfer market also opens... If Sisu don't have the money put aside what would or could they sell, if anything?
Cyrus Christie ,Joe Murphy for starters.
OSB - can't an Administrator just terminate anyone's contracts as soon as he's appointed? That's how it works in the real world - I'm just not sure in the Football world? Can you clarify?
OSB - can't an Administrator just terminate anyone's contracts as soon as he's appointed? That's how it works in the real world - I'm just not sure in the Football world? Can you clarify?
I personally can see no other outcome than administration for ccfc..I think this is the ONLY way the club would get a respectable owner/ takeover.either way I'm not overly concerned about liquidation or closure as I believe that won't happen..you can't blame acl for their actions here..as its in line with business conduct and probably long overdue..either way thanks for your postI promised to share further updates with users of this Board as and when I was able. This is one of those moments. I’m sorry to have to share the news that earlier today the Arena Coventry Limited Board issued a Statutory Demand to Coventry City Football Club.
This wasn’t something meant for public consumption. The Board took its decision with a heavy heart and would have preferred it to remain a confidential business matter between ACL and CCFC. There is little to be gained from playing these dramas out in public. Sadly it seems, certain other parties do not share this view.
Where we go from here is up to Fisher and Clarke and Joy Seppala and her hedge fund, Sisu. The Statutory Demand gives the Club 21 days to pay the outstanding rent or face the legal consequences. In practice, this could lead to the Board petitioning the Court for an order to wind up the Club, or for Fisher and Clarke, as directors of CCFC, to declare the club insolvent. I think we all hope that it does not come to that.
Sisu’s refusal to pay what they owe, despite ACL’s best efforts has left the Board with little option but to take this action (and the Board has left no stone unturned). As a Board we have to act in the best long term interests of ACL and everyone associated with it. It has been made abundantly clear time and again to the Club and its current owners that their actions would not be allowed to compromise the business. They have rejected every offer and attempt to find a solution.
The attacks on ACL made by the Club's management through the media have been seriously misleading and raised unfounded fears. The fact is, ACL has a strong business and is building for the long term. Of course, ACL has been hurt by CCFC and Sisu’s refusal to pay its rent; we cannot allow this to cause lasting damage.
Be assured that the Charity as a shareholder is absolutely supportive of this action, sad though it may be. As I’ve said previously, Sisu stopped talking to us months ago; and the Trustees are not going to be bullied by anyone into selling their stake in this excellent business for less than its full value. We’re committed to the Arena for as long as necessary.
We all hope, deeply and sincerely, that Joy Seppala and Sisu respond to this action in a constructive and positive way, which includes paying what they owe and working with the Board to put the Club on an even footing. Nobody would be sadder than the Trustees,all long term Sky Blues fans, to see the Club fail, and we trust it will not come to that.
My apologies for the length of this post, but given the situation I felt a full update was in order. I will try to respond to questions (as ever) within the constraints of what is legal and appropriate for me to say in public.
This wasn’t something meant for public consumption. The Board took its decision with a heavy heart and would have preferred it to remain a confidential business matter between ACL and CCFC. There is little to be gained from playing these dramas out in public. Sadly it seems, certain other parties do not share this view.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?