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
Give the landlord the right.......
Oh I think once out of administration liquidation will swiftly follow, don't you?
So the penalty for that?
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.
Liquidation of part of the football club
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
Liquidation of part of the football club
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?
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.
The league will have in advance approved and supported the action.
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?
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.
Give the landlord the right.......
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
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