Flying Fokker
Well-Known Member
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[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]I last updated you about the latest developments in the long-running issue of the future of Coventry City Football Club in January, when Coventry city councillors took the unanimous decision to support a new loan arrangement for Arena Coventry Limited (ACL). At the time many of you got in touch with me to express your support for the decision, or ask questions about the decision and its implications. [/FONT][/FONT]
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[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]So I thought it was important to keep you updated about developments late yesterday (Wednesday) that have seen ACL [/FONT][FONT=Arial,sans-serif]make an application to the High Court in London to request that it make an administration order against Coventry City Football Club (CCFC). The application relates to CCFC’s failure to pay ACL £1.4m[/FONT][FONT=Arial,sans-serif] [/FONT][FONT=Arial,sans-serif]in rent that ACL is lawfully owed for CCFC's use of the Ricoh Arena.[/FONT][/FONT]
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[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]Clearly, the responsibility for taking this decision sits with the ACL Board, which has kept senior councillors fully briefed on the course of action being taken by ACL.[/FONT][FONT=Arial,sans-serif] The Council remains committed to supporting ACL in order to maintain its position as a strong business with a track record of profitability, securing growth for the local economy.[/FONT][/FONT]
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[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]The ACL Board has made it clear it has a legal responsibility to its shareholders, employees and creditors to recoup the money CCFC owes, and this action gives the football club the best chance of survival in the Football League[/FONT][FONT=Arial,sans-serif]. [/FONT][FONT=Arial,sans-serif]It prevents SISU putting the club into liquidation, which could see the end of the Club or its re-emergence many divisions lower in the Football League.[/FONT][/FONT]
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[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]At a date in the next few weeks, the High Court will consider the club’s financial position, and whether it is fit to continue trading. If the High Court rules that this is not the case, CCFC will be placed into administration.[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]If[/FONT][FONT=Arial,sans-serif] the High Court determines that CCFC should be placed into administration, the High Court will then appoint an administrator to sell CCFC to a buyer that is able to restore financial stability to the Club.[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]It will provide for an interim period, pending the outcome of the hearing, during which other parties (including CCFC’s owner, Sisu) will be unable to wind-up or liquidate CCFC. [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]As I said in January, when we took the decision to support the new loan arrangement for ACL, I believe it’s our duty to do what we can to safeguard the future of one of our greatest assets – as long as we do this while protecting the interests of our residents. I will continue to keep you updated when there are further developments. [/FONT][/FONT]
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[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]As ever, please feel free to drop me a line to let me know your views if you would like to; I will try and respond to you all as quickly as possible.[/FONT][/FONT]
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[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]Martin Reeves[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]Chief Executive[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]Coventry City Council[/FONT][/FONT]
[FONT=Calibri,sans-serif] [/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]I last updated you about the latest developments in the long-running issue of the future of Coventry City Football Club in January, when Coventry city councillors took the unanimous decision to support a new loan arrangement for Arena Coventry Limited (ACL). At the time many of you got in touch with me to express your support for the decision, or ask questions about the decision and its implications. [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]So I thought it was important to keep you updated about developments late yesterday (Wednesday) that have seen ACL [/FONT][FONT=Arial,sans-serif]make an application to the High Court in London to request that it make an administration order against Coventry City Football Club (CCFC). The application relates to CCFC’s failure to pay ACL £1.4m[/FONT][FONT=Arial,sans-serif] [/FONT][FONT=Arial,sans-serif]in rent that ACL is lawfully owed for CCFC's use of the Ricoh Arena.[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]Clearly, the responsibility for taking this decision sits with the ACL Board, which has kept senior councillors fully briefed on the course of action being taken by ACL.[/FONT][FONT=Arial,sans-serif] The Council remains committed to supporting ACL in order to maintain its position as a strong business with a track record of profitability, securing growth for the local economy.[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]The ACL Board has made it clear it has a legal responsibility to its shareholders, employees and creditors to recoup the money CCFC owes, and this action gives the football club the best chance of survival in the Football League[/FONT][FONT=Arial,sans-serif]. [/FONT][FONT=Arial,sans-serif]It prevents SISU putting the club into liquidation, which could see the end of the Club or its re-emergence many divisions lower in the Football League.[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]At a date in the next few weeks, the High Court will consider the club’s financial position, and whether it is fit to continue trading. If the High Court rules that this is not the case, CCFC will be placed into administration.[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]If[/FONT][FONT=Arial,sans-serif] the High Court determines that CCFC should be placed into administration, the High Court will then appoint an administrator to sell CCFC to a buyer that is able to restore financial stability to the Club.[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]It will provide for an interim period, pending the outcome of the hearing, during which other parties (including CCFC’s owner, Sisu) will be unable to wind-up or liquidate CCFC. [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]As I said in January, when we took the decision to support the new loan arrangement for ACL, I believe it’s our duty to do what we can to safeguard the future of one of our greatest assets – as long as we do this while protecting the interests of our residents. I will continue to keep you updated when there are further developments. [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]As ever, please feel free to drop me a line to let me know your views if you would like to; I will try and respond to you all as quickly as possible.[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif] [/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]Martin Reeves[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]Chief Executive[/FONT][/FONT]
[FONT=Calibri,sans-serif][FONT=Arial,sans-serif]Coventry City Council[/FONT][/FONT]
