Nick
Administrator
Coventry City today sought to re-assure fans following auditors’ concerns over the club’s future - as it faced more questions over late accounts.
The Telegraph yesterday revealed[/FONT] the newly filed overdue accounts for club owner, Sisu-related company Otium, contained auditor BDO’s concerns about the club’s ability to stay afloat as a “going concern” in the next year.
BDO - responding to Otium’s own assessment in the accounts that it was confident but could not be certain about its future financial performance - stated there was “fundamental uncertainly” over the club’s funding, revenues and cost savings.
The club today re-iterated its investors managed by hedge fund Sisu/Arvo Master Fund boss Joy Seppala were committed to the club’s long-term future.
It came as further questions were raised about the continued non-filing of late accounts for two other club companies - Coventry City Football Club (Holdings) Limited, and Sky Blue Sports & Leisure Limited - after Companies House threatened prosecution last month.
Fans hostile to Sisu involved in the Not One Penny More campaign have been awaiting the late 2012 accounts for Holdings in particular, due in February.
Campaigners want to see if the accounts would record any movement of assets including players from CCFC Ltd's last filed accounts.
CCFC Ltd was placed in administration in March and has now entered liquidation - with only the lease and licence to play at the Ricoh contained in it.
The club said yesterday it was “working to provide all outstanding information to Companies House”. But it would not elaborate on whether it would be submitting the accounts for CCFC Holdings Limited.
One theory is the club may seek to move to dissolve Holdings - whose assets have now been transferred to Otium - and avoid having to file the 2011/12 accounts.
Insolvency expert and Coventry City supporter Alan Limb, of BRI (Business Recovery and Insolvency), which has offices in Coventry, said: “A company that has been dissolved doesn’t have to file any accounts, even if they are overdue.
“Companies House may take action against Holdings and its directors for not filing the accounts. It may also seek to refuse an application by Holdings for it to be struck of the register or dissolved.
“Ultimately, I don’t know what can be done to force the company to prepare the accounts.”
He added Holdings could be dissolved without an investigation following insolvency if it had paid all creditors, including Sisu-related ones which could write off debt.
Asked about the issue, Companies House said only: “We can’t comment directly on any correspondence between ourselves and the company(ies) in question. However I can confirm that at this time the case is still ongoing.
“Also I’m unable to clarify your question regarding historic accounts as this very much depends on what happens with the ongoing case.”
Football League chairman Greg Clarke is among businessmen who say late filing of accounts is commonplace, particularly when there are insolvency events. Other commentators say club directors may face a fine at worst.
A club statement today reads: “We would just like to clarify a couple of points which have been raised from the article which appeared in the Coventry Telegraph about Otium’s accounts for the period which ended on May 31, 2012.
“As in previous years, the club’s owner continued to fund the club and supplied a letter of support to the auditors, essential for the auditors to sign off the accounts.
“Added to this, it should be remembered that the Football League required an undertaking from the owner to continue to provide financial support in order to able to acquire the golden share.
“As we have stated many times before, the club’s owner has funded the club every year to the tune of tens of millions and is committed to the long-term future of CCFC.”
BDO’s statement in the accounts concludes there is “fundamental uncertainty which may cast doubt over the company’s ability to continue as a going concern.”
Meanwhile, a spokesman for part-council-owned Ricoh firm Arena Coventry Limited denied club allegations, re-issued yesterday, that its then chairman Nicolas Carter had written to BDO in February when talks over stadium ownership, revenues and rent collapsed, to “dissuade” the auditors from signing off the club’s accounts.
An ACL spokesman said: “The allegation that we put pressure on the club’s auditors not to sign off the accounts is completely false.
“There is quite simply no mechanism through which ACL could put pressure on the auditors not to sign off accounts. We look forward with interest to reviewing the filed accounts.”
The club insists BDO had confirmed in writing that Mr Carter had written to it on February 28 to state negotiations had collapsed and rent debts due to the Ricoh firm would need to be considered by BDO in relation to the completion of the 2012 accounts, and the club’s “going concern” status.
The club says it has “cleaned up the untidy structure we inherited by scrapping the old CCFC Limited/Holdings set-up and putting the club’s business and assets under one company, Otium.”
As reported yesterday, the Otium accounts reveal just under £8million of debts owed relating to loans from Arvo Master Fund over the last two years.
Sisu boss Joy Seppala, in an exclusive Telegraph interview, insisted total liabilities were £60m.
Taken from this link : http://www.coventrytelegraph.net/news/coventry-news/coventry-city-face-more-questions-6168086
The Telegraph yesterday revealed[/FONT] the newly filed overdue accounts for club owner, Sisu-related company Otium, contained auditor BDO’s concerns about the club’s ability to stay afloat as a “going concern” in the next year.
BDO - responding to Otium’s own assessment in the accounts that it was confident but could not be certain about its future financial performance - stated there was “fundamental uncertainly” over the club’s funding, revenues and cost savings.
The club today re-iterated its investors managed by hedge fund Sisu/Arvo Master Fund boss Joy Seppala were committed to the club’s long-term future.
It came as further questions were raised about the continued non-filing of late accounts for two other club companies - Coventry City Football Club (Holdings) Limited, and Sky Blue Sports & Leisure Limited - after Companies House threatened prosecution last month.
Fans hostile to Sisu involved in the Not One Penny More campaign have been awaiting the late 2012 accounts for Holdings in particular, due in February.
Campaigners want to see if the accounts would record any movement of assets including players from CCFC Ltd's last filed accounts.
CCFC Ltd was placed in administration in March and has now entered liquidation - with only the lease and licence to play at the Ricoh contained in it.
The club said yesterday it was “working to provide all outstanding information to Companies House”. But it would not elaborate on whether it would be submitting the accounts for CCFC Holdings Limited.
One theory is the club may seek to move to dissolve Holdings - whose assets have now been transferred to Otium - and avoid having to file the 2011/12 accounts.
Insolvency expert and Coventry City supporter Alan Limb, of BRI (Business Recovery and Insolvency), which has offices in Coventry, said: “A company that has been dissolved doesn’t have to file any accounts, even if they are overdue.
“Companies House may take action against Holdings and its directors for not filing the accounts. It may also seek to refuse an application by Holdings for it to be struck of the register or dissolved.
“Ultimately, I don’t know what can be done to force the company to prepare the accounts.”
He added Holdings could be dissolved without an investigation following insolvency if it had paid all creditors, including Sisu-related ones which could write off debt.
Asked about the issue, Companies House said only: “We can’t comment directly on any correspondence between ourselves and the company(ies) in question. However I can confirm that at this time the case is still ongoing.
“Also I’m unable to clarify your question regarding historic accounts as this very much depends on what happens with the ongoing case.”
Football League chairman Greg Clarke is among businessmen who say late filing of accounts is commonplace, particularly when there are insolvency events. Other commentators say club directors may face a fine at worst.
A club statement today reads: “We would just like to clarify a couple of points which have been raised from the article which appeared in the Coventry Telegraph about Otium’s accounts for the period which ended on May 31, 2012.
“As in previous years, the club’s owner continued to fund the club and supplied a letter of support to the auditors, essential for the auditors to sign off the accounts.
“Added to this, it should be remembered that the Football League required an undertaking from the owner to continue to provide financial support in order to able to acquire the golden share.
“As we have stated many times before, the club’s owner has funded the club every year to the tune of tens of millions and is committed to the long-term future of CCFC.”
BDO’s statement in the accounts concludes there is “fundamental uncertainty which may cast doubt over the company’s ability to continue as a going concern.”
Meanwhile, a spokesman for part-council-owned Ricoh firm Arena Coventry Limited denied club allegations, re-issued yesterday, that its then chairman Nicolas Carter had written to BDO in February when talks over stadium ownership, revenues and rent collapsed, to “dissuade” the auditors from signing off the club’s accounts.
An ACL spokesman said: “The allegation that we put pressure on the club’s auditors not to sign off the accounts is completely false.
“There is quite simply no mechanism through which ACL could put pressure on the auditors not to sign off accounts. We look forward with interest to reviewing the filed accounts.”
The club insists BDO had confirmed in writing that Mr Carter had written to it on February 28 to state negotiations had collapsed and rent debts due to the Ricoh firm would need to be considered by BDO in relation to the completion of the 2012 accounts, and the club’s “going concern” status.
The club says it has “cleaned up the untidy structure we inherited by scrapping the old CCFC Limited/Holdings set-up and putting the club’s business and assets under one company, Otium.”
As reported yesterday, the Otium accounts reveal just under £8million of debts owed relating to loans from Arvo Master Fund over the last two years.
Sisu boss Joy Seppala, in an exclusive Telegraph interview, insisted total liabilities were £60m.
Taken from this link : http://www.coventrytelegraph.net/news/coventry-news/coventry-city-face-more-questions-6168086
