No FL ruling for AT LEAST a month! (1 Viewer)
- Thread starter Perryccfc
- Start date
RegTheDonk
Well-Known Member
Probably waiting to see if Fisher can talk Walsall into letting us play there.
FL: Note to self - don't rock the boat of people who will kick your arse in court.
FL: Note to self - don't rock the boat of people who will kick your arse in court.
Otis
Well-Known Member
I won't believe it unless it comes directly from Chad Roberts!!
CovMatt1987
New Member
so we are going to have to wait a month for a ruling that, lets face it, is going to go completely against the fans wishes??
its this exampel that shows when football clubs say things like 'its all about the fans'.....when it actually comes down to it, it isnt in the slightest bit about the fans. the football league are backing that up.
its this exampel that shows when football clubs say things like 'its all about the fans'.....when it actually comes down to it, it isnt in the slightest bit about the fans. the football league are backing that up.
Can you post it up noggin??
The Football League is awaiting further developments by the administrator in charge of Coventry City Football Club Limited before deciding whether to back a sale to Sisu-related company Otium.
They include, in the first instance, the next meeting of creditors - which the Telegraph understands is set to take place in mid-July.
Meanwhile, internet rumours today that the League is set to step in to prevent a sale to Otium - administrator Paul Appleton's preferred buyer - were dismissed as false by sources speaking to the Telegraph.
Chad Roberts, who has organised a petition calling on the Football League to intervene, tweeted this morning: "I have a reply off the FL saying as it stands Otium have failed the fit for purpose procedure."
In another tweet, he wrote: "...The emails says the FL believe Otium are to fail the League's insolvency procedure."
The Telegraph understands from sources the League WILL apply its "owners and directors test" - also known as the "fit and proper test" - before deciding whether or not to transfer the crucial golden share to Otium Entertainment Group Limited , which would give it the right to run the club in the league.
But the League is still some way off that process - even though frustrated fans are desperate for developments with the new season set to begin in early August .
A Football League spokesman said: "We are waiting for the administrator to call a meeting of creditors. The ball is in the administrator's court."
Mr Appleton was unavailable for comment this morning, but it is believed he could arrange the next meeting of creditors for around July 15.
Before that, he will need to give creditors 14 days' notice in law of the creditor's meeting - and of his new proposals for how much of their debts should be returned to them by a sale to Otium.
It is understood the Football League board will consider whether or not creditors then agree to a sale, and how much has been offered to each creditor.
Creditors include the part Coventry City Council owned Ricoh company Arena Coventry Limited.
How quickly Coventry City come out of administration could depend on whether ACL refuses to sign a Creditor Voluntary Agreement (CVA) to enable the administrator's proposed sale to Otium.
ACL is seeking a return on rent arrears unpaid since April last year by Coventry City and its hedge fund owners Sisu - and has favoured a takeover of the club by investors who could bring the club and stadium together .
Some fans campaigning against Otium/Sisu are calling on the Football League to step in on the grounds of the late filing of accounts by Otium Entertainment Group Ltd, Coventry City Football Club Holdings Ltd, and other Sisu-related companies.
A credit report for Otium Entertainment Group Limited - seen by the Telegraph - does not give the company a credit rating.
It states the reason for being "not rated" as: "Financial statements not filed/too old."
It states its directors are Tim Fisher and Mark Labovitch, both directors of Coventry City Football Club (Holdings) Limited - the company not in administration which continues to operate the club after CCFC Ltd was in March placed in administration by Sisu-related Arvo Master Fund Limited, a secured creditor owed £10.5million.
The credit report also states Otium's shareholders are two other Sisu-related companies - Sky Blue Sports and Leisure Limited, and Cayman Islands-based Arvo Master Fund Limited.
But sources on both sides of the dispute believe late filing of accounts will not be enough for the Football League to fail Otium or Holdings on "fit and proper" grounds.
The Telegraph understands from inside sources that the League is unlikely to risk legal action by failing Otium on "fit and proper" grounds in the absence of evidence of serious wrongdoing or criminality.
It is believed the League will decide who gets the golden share based on the likelihood of the club being sustainable - without it returning to administration in the short to medium term.
Sources told the Telegraph the League's lawyers will consider all evidence put to them, including from fans, and will consider other points of issue for fans.
They include the circumstances in which Arvo placed CCFC Limited in administration - with liabilities of up to £70million - after ACL lodged a High Court administration order.
Mr Fisher and Holdings have repeatedly insisted the Football League itself had been dealing with Holdings in football-related transactions, including the registering of players - despite documents which had previously registered the golden share with CCFC Ltd before administration.
The only Football League deadline beyond which it will not allow Coventry City to be in administration is the start of the 2014/15 season - as no club can start two seasons in administration.
The Football League had nothing else to add today to its statement last Tuesday, which stated it would "now work with the administrator and the proposed purchaser with regards to the fulfilment of the requirements of The League's insolvency policy ."
ACL - jointly owned by the council and Alan Edward Higgs Charity - is also remaining silent, after stating last Wednesday it was examining the "full range of legal options" available to it.
One question will be whether there is political will among the new leadership of Coventry City Council to continue employing expensive lawyers in the protracted dispute.
ACL may seek to delay the administration in the hope the Football League will block the sale to Otium by refusing to transfer the golden share to it.
Another option for ACL could be to delay to allow more time for a prospective purchaser to put a bid on the table to Sisu to buy out the football club. That investor could then potentially become a new partner in the stadium company, buying out as a minimum the Higgs charity share for an estimated £4million.
ACL says it is prepared to allow the club to play at the Ricoh Arena rent-free for the new season from August - on a matchday costs only basis - but only if the club remains in administration.
ACL says any interim deal to play at the Ricoh would have to be arranged via the administrator.
An administrator's report in May stated liquidation of Coventry City Football Club Limited was an alternative, should there be no agreement between creditors to bring the company out of administration via a CVA. Three of the four creditors are Sisu-related companies.
Sources close to CCFC Holdings claim they are continuing to advance plans to buy a site for a new stadium in the Coventry area, and ground share in the meantime.
The Telegraph understands the Football League is prepared to be flexible on how far away from Coventry the club might play on an interim basis - which scotches suggestions it would have to be within a 30-mile radius.
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RoboCCFC90
Well-Known Member
It has to be said I won't know what to make this of information until I have heard Robbie Savage's expert opinion on the BBC..
Mary_Mungo_Midge
Well-Known Member
The club cannot agree to ground-share unless it's out of administration.
This really does put the notion of playing anywhere other than The Ricoh fanciful at best. To push ahead with this as a backdrop; with no clear message to the fans on the eve of a new season is suicide on the verge of recklessness
This really does put the notion of playing anywhere other than The Ricoh fanciful at best. To push ahead with this as a backdrop; with no clear message to the fans on the eve of a new season is suicide on the verge of recklessness
This delay will have the effect of putting SISU/Otium's ground share/new stadium plans on hold and may force Appleton to do an emergency deal with ACL to play at the Ricoh. I would guess the FL would be looking at a season long deal. What effect would this have on the FL's final decision ? If SISU/Otium get the nod would they be forced to play at the Ricoh after all that has been said by Fisher under the terms of an agreement they did not negotiate ? I doubt they would be allowed to start a ground share mid-season.
If the FL were satisfied with SISU/Otium they would surely have by now rubber stamped Appleton's verdict. The delay surely indicates that there are doubts, and issues to investigate which gives some hope. Of course it means that we remain in administration, and the transfer embargo remains, therefore next season is already becoming a case of can we stay up, I believe.
Still if we come out of it with new owners and a fresh start, it will, I think be worth it in the long term.
If the FL were satisfied with SISU/Otium they would surely have by now rubber stamped Appleton's verdict. The delay surely indicates that there are doubts, and issues to investigate which gives some hope. Of course it means that we remain in administration, and the transfer embargo remains, therefore next season is already becoming a case of can we stay up, I believe.
Still if we come out of it with new owners and a fresh start, it will, I think be worth it in the long term.
RoboCCFC90
Well-Known Member
(My next question is not intended to scare anyone but needs to be asked)
Can someone clarify that if we do not find a ground to play in before the first game are we not expelled from that competition?
Can someone clarify that if we do not find a ground to play in before the first game are we not expelled from that competition?
Gray
Well-Known Member
article says he has to give 14 days notice for a creditor meeting and that it's likely to be around 15th July.
Why on earth didn't he call it a week or so before the final bids were due in to give him time to look at the bids and make a decision and then have the meeting soon after?
fernandopartridge
Well-Known Member
Sorry but it's nothing to do with what they think of Otium. The administration isn't settled yet, not all creditors have been satisfied. That is the whole premise of the article. The FL don't have a clear decision to make yet.
It's interesting that ACL could, if they wish, refuse to sign a CVA and therefore potentially leave City with a 15 point deficit going into the season.
fernandopartridge
Well-Known Member
Not sure why he didn't call the creditors meeting immediately after the deadline, although other posts on this thread could indicate a possible reason.
That's a capability both sides possess,Only SISU have the ability to liquidate though as the article reminds us.
Mary_Mungo_Midge
Well-Known Member
And let us remember - before the hysteria starts again - that ACL's directors are legally obliged to act in the best interests of the company they represent. They are faced with a no-win situation. Refuse to sign the CVA and they're accused of all sorts on here, and I hate to think what's happen on GMK. Sign it and they may not be conducting themselves according to their terms of their office
RoboCCFC90
Well-Known Member
I was under the knowledge that we couldn't do this because we need a ground suitable to hold attendances..
fernandopartridge
Well-Known Member
I agree - the inference from the article could be read as a less than 100% settlement for 3rd party creditors.....
RoboCCFC90
Well-Known Member
That's all fine bud, but unless the Administrator breaks the deal we can't complete a deal for a Groundshare while in Admin.. We have to hope Appleton pulls his finger out..
Leamington Pete
Well-Known Member
If they drag out signing the CVA thereby keeping us in admin at the start of the season, SISU would have to eat humble pie and take up ACL's no rent offer. Could it be in ACL's interest to do this maybe?
lordsummerisle
Well-Known Member
Is whoever puts a company in administration liable for the costs of that administration or is it the company being put into administration that is liable for it?
Absolutely no idea myself.
ccfcway
Well-Known Member
The will rent Nene Park before buying it !
Mary_Mungo_Midge
Well-Known Member
Administation's costs will be settled from the assets of the business, it's ongoing income, or from it's purchase; I understand
This all proves - if anyone was in any doubt - that SHITSU / Odious are nowhere near as stupid as TF sometimes make them appear. An unplayable ball is now, seemingly, in ACL's court:- refuse to sign off on the CVA and they consign us to a 15 point deduction and (almost certainly) League 2 or accept it and allow SHITSU / Odious to strengthen their grip on the club and to take it god knows where
The long term aim of SHITSU has always looked like it was to force ACL out of business or into a fire sale and it looks like they are going to succeed, ultimately, in one or both of those objectives
I'm afraid that whatever way one looks at it SHITSU have won / are winning and in due course, having paid lip service to "fit and proper" requirements the FL will rubber stamp and endorse that victory. God its depressing!
Mary_Mungo_Midge
Well-Known Member
Yeah. And be accused of what? This really is a moral dilemma for the directors; and I don't envy them one iota