CET: Sky Blues take Coventry City Council to high court over bailout

Discussion in 'Coventry City General Chat' started by skyblu3sk, Apr 23, 2013.

  1. skyblu3sk

    skyblu3sk Moderator

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    COVENTRY City Council's £14million bailout of the Ricoh Arena company is to be challenged in the High Court by the Sky Blues, the Telegraph can reveal.
    The football club wants a judge to rule whether the deal was a lawful use of taxpayers' money.

    Councillors unanimously agreed the highly confidential deal behind closed doors in January * to bail out the part council-owned stadium management company Arena Coventry Limited (ACL) by buying out its outstanding mortgage loan with Yorkshire Bank.

    The deal relieved financial pressure on ACL, allowing it to make smaller mortgage payments to the council at lower interest rates.

    Council officers * including the council's chief executive Martin Reeves and finance director Chris West, who are also ACL board members * had recommended councillors back the move.

    It was amid fears ACL could be heading for administration * after nearly a year of Coventry City Football Club refusing to pay its £100,000-a-month rent for using the stadium * which could have forced the sale of the Ricoh at a knock down price.

    After the deal was struck in January, council officers told the Telegraph the £14million had initially come from the council's “cash balances“ * money set aside for unspecified council spending.

    The plan was to replenish those funds with £14million of council borrowing at an unspecified later date, under a government-approved scheme called Prudential Borrowing.

    Now the Telegraph has learned Sisu-owned Coventry City Football Club (Holdings) Ltd last week served papers at the High Court and with Coventry City Council.

    The papers are seeking leave to appeal * meaning a judge will initially rule on whether the High Court challenge has enough merit to proceed to a full judicial review. The Telegraph understands the legal challenge partly concerns whether the council paid over the market value for the stadium company's mortgage, and could therefore be unlawful under `state aid' rules.

    It is just the latest manoeuvre in the long-running dispute between ACL, the football club and Sisu.

    One arm of the club's business, Coventry City Football Club Limited, was placed in administration last month by Sisu-related Cayman Islands-based hedge fund Arvo Master Fund * 24 hours before ACL sought to enforce administration in the High Court.

    With CCFC Ltd currently owned by administrator Paul Appleton, ACL and council leaders are backing a potential takeover of the club and half the stadium company by former Sky Blues directors Joe Elliott and Gary Hoffman * with possible financial backing from US property investor Preston Haskell IV. After the bailout deal was agreed on January 15, council leader John Mutton said they had been `forced' to protect a public asset for Coventry people, as well as taxpayer investment in the Ricoh.

    Councillors believed the football club's owners refusal to pay rent was an attempt to force ACL into administration * so they could pick up the stadium on the cheap.
    A war of words between the council, ACL and club chief executive Tim Fisher had been played out in the media for months, after talks over a lower rent deal and stadium ownership broke down.
     
  2. Sub

    Sub Well-Known Member

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    FFS this just gets worse :facepalm::facepalm::facepalm::facepalm:
     
  3. skyblu3sk

    skyblu3sk Moderator

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    A stAtement from Coventry City Football Club (Holdings) Ltd yesterday confirmed it had submitted an application to the High Court “to determine whether the council acted unlawfully in its use of public funds to financially support ACL and in its actions towards Coventry City Football Club in relation to the dispute with ACL.“
    the statement continued: “In the meantime, we are committed to reaching a negotiated solution to the dispute with ACL. If ACL were prepared to meet with us, we would retain hope of reaching an agreement that will allow the club to continue playing at the Ricoh.“

    A spokesman for Coventry City Council said: “the council has been served with Judicial Review proceedings. Our position is that we have acted lawfully in all respects.

    “the council will strongly defend the claim.“
     
  4. Gray

    Gray Well-Known Member

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    Is nice to know that SISU care so much about our money.
     
  5. Jim

    Jim Member

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    Two options here:

    SISU are complaining that the council aided ACL by lowering the mortgage interest payments, which in turn allowed ACL to make an vastly improved rent offer to the club. This shows SISU to be idiotic in the extreme.

    OR

    SISU are complaining that the council (which did not use taxpayers money to fund ACL) helped to ensure that the company that it jointly owned could not be put in distress by SISU not paying contracted rent, and denied SISU the chance to pick up the Ricoh on the sly. This shows SISU to be scum.

    So:

    Stupid or Scum?
     
  6. rustyredline

    rustyredline New Member

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    Stupid desperate scum. Feel it's gonna get alot more messy before we see the back um. How does a company that can't afford the rent keep paying so many legal fees.
     
  7. bigfatronssba

    bigfatronssba Active Member

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    Im confused, what right does Ccfc holdings have to get involved with the rent debate?
     
  8. Otis

    Otis Well-Known Member

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    Puzzled me too.

    Who do they think they are, Offwat?
     
  9. ArchieLittle

    ArchieLittle Member

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    As Holdings were not the tenant and pay their council tax in Mayfair, what is their complaint?
     
  10. Lord_Nampil

    Lord_Nampil Well-Known Member

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    Just take a step back at the moment, and forget all motives etc on why this is taking place. But what happens if the club wins its appeal in the court? What would that mean to the situation? It must add up for th to do it, but why? Answers on a postcard.....
     
  11. CCFCDan87

    CCFCDan87 New Member

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    To all the SISU sympathises on here, hope your happy now!!!!!!!

    They are horrible horrible people and don't care about this club!!!

    2 years ago people protested and got ignored. Now the fans who didn't join in the protests and sat back are happy with how this club has gone!

    Fuming
     
  12. bigfatronssba

    bigfatronssba Active Member

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    If they are just doing this out of concern for the taxpayers of Coventry, could they not challenge the council planning department over cathedral lanes instead?
     
  13. fernandopartridge

    fernandopartridge Well-Known Member

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    How did the council not use tax payer funds to finance ACL?

    This move makes it absolutely clear what the Sisu game is, if it wasn't already. The plan is to distress ACL. If the Court rules in Sisu's favour it's very bad news for ACL. That said, not sure if a loan to be repaid constitutes state aid.
     
  14. Sub

    Sub Well-Known Member

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    just more delaying tatics, red tape, and spin by SISU, so pissed off every time there is a chink of light at the end of the tunnel SISU cause another massive cave in to keep us trapped in this mess :jerkit::jerkit::jerkit::jerkit::jerkit:
     
    Last edited: Apr 23, 2013
  15. torchomatic

    torchomatic Well-Known Member

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    Weird one. Not sure what they expect to achieve.
     
  16. bigfatronssba

    bigfatronssba Active Member

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    Can't see anything other than a fine for the council if any wrongdoings are found.
     
  17. Osullivan18

    Osullivan18 Active Member

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    The word desperation springs to mind
     
  18. Mr T - Sukka!

    Mr T - Sukka! Active Member

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    I think its fair to say ccfc under SISU have played thier last game at the Ricoh.

    Talk about biting the hand that feeds you (providing a home).

    Its also burning bridges as there will be no way back from this for ACL and CCFC.

    Sad times.
     
  19. covkid69

    covkid69 Active Member

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    does this not sort of prove that all along shitzu only had one reason for not paying the rent and also in not accepting a lower rent...to deliberately distress acl hoping they would go into admin so they could get it cheap....slimy underhanded wankers.....really what chance have they got now that either acl or the council will have anymore dealings with them....time to fook off now sisu :jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit::jerkit:
     
  20. Monkeyface

    Monkeyface Well-Known Member

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    This isn't being done for any real purpose, other than spite, its what happens when a woman gets made to look bad!
     
  21. BigadamL

    BigadamL Well-Known Member

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    Last act of a desperate company?!? I
     
  22. luwalla

    luwalla Well-Known Member

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    sorry but there are another two options here.. either you didnt read the details, or you didnt understand them

    "the £14million had initially come from the council's “cash balances“ * money set aside for unspecified council spending"

    what part of that says that the council didnt use tax payers money .. in fact it clearly confirms that its exactly what they DID use!
     
  23. AFCCOVENTRY

    AFCCOVENTRY Well-Known Member

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    Council will just say they are protecting a community asset
     
  24. Diehard Si

    Diehard Si New Member

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    Utter scum.

    Really finding it hard to keep interested while they are still in charge.
     
  25. woody11462

    woody11462 Active Member

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    Will this have any impact/delay on the administration decision side of things? If so the likes of PH and other rumoured interested parties aren't likely to hang around surely? They've purposely at greed a deal for the last few home games and then last minute, pulled this out of the bag.
     
  26. Sbarcher

    Sbarcher Well-Known Member

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    Good timing to take this forward after the last home game and the £50 agreement.
    I think it's probably in SISU's interest to keep activity going as long as possible and put as many spanners in the works as possible. This will pee off any potential buyers leaving SISU to buy back by default. A cunning plan is Joy thr new Baldrick?
     
  27. mark82

    mark82 Moderator

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    Doubt it would delay what the administrator is doing but could delay any deal for ACL I guess.
     
  28. williesdonkeykick

    williesdonkeykick Member

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    MADE TO LOOK BAD???? Have you seen her photo in the media?:D
     
  29. Waldorf

    Waldorf New Member

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    So here we have the hedge fund owners of a football club taking the local council to Court for loaning a company they half own, that leases a building they own, money so that they can offer a lower rent to a tenant that is owned by ... er ... said hedge fund.
    I don't know the ins and outs of what the council did when making the loan, but I doubt they did it without legal advice.
    Can anyone remember when the council made the loan? Because if its more than three months ago, SISU are out of time in their application anyway.
     
  30. LarryGrayson

    LarryGrayson Member

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    no need to bring her gender into it mate thats just pathetic lol

    just a thought but wut if they have a point wut if they win wut happens then

    does everyone then agree that sisu had a point and the council were wrong if sisu win this
     
  31. kingharvest

    kingharvest Member

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    Remember, this is European Commission Competition policy.

    State Aid is where a public sector organisation provided financial support of any kind to any organisation engaged in economic activity. The reason CCFC Holdings can challenge is because anyone can challenge as it distorts the market.

    Lets say you ran a company manufacturing garage roof's, your company is worth about £500k and you have a competitor who looks pretty much the same. The council 'buy out' a loan that your competitor has for £2m and was going to default on, gives them reduced rates, and in turn makes them viable again.

    You'd be pissed off wouldn't you? The council would have just distorted the market not only by busting state aid rules (Exceptions do apply but aren't worth going into here), but also by paying above market rate.

    Anyone can challenge, and clearly CCFC Holding have an interest in challenging this rule.

    As i said in another thread, i'm sure i read that the council gave state aid rules as a reason why they couldn't give the club any of the money from the tesco land sale back in the day. Wasn't it in that Paul Fletcher interview? So this is slightly ironic.
     
  32. kingharvest

    kingharvest Member

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  33. Godiva

    Godiva Well-Known Member

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    And that's pretty much where it all began. The rest is chain reactions.
     
  34. ajsccfc

    ajsccfc Well-Known Member

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    Such people don't exist, it's just a crutch for thick people to cause argument.
     
  35. CovLis86

    CovLis86 Member

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    Hopefully this nonsense is thrown out as distractive and measures just to keep delaying proceedings.
     

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