Found this on the Council Website (1 Viewer)

[Flying Fokker]

]I last updated you about the latest developments in thelong-running issue of the future of Coventry City Football Club in January,when Coventry city councillors took the unanimous decision to support a newloan arrangement for Arena Coventry Limited (ACL). At thetime many of you got in touch with me to express your support for the decision,or ask questions about the decision and its implications. So I thought it was important to keep you updated aboutdevelopments late yesterday (Wednesday) that have seen ACLmake an application to the High Court in London torequest that it make an administration order against Coventry City FootballClub (CCFC). The application relates to CCFC’s failure to pay ACL £1.4min rent that ACL is lawfully owed for CCFC's use of the Ricoh ArenaClearly, the responsibilityfor taking this decision sits with the ACL Board, which has kept senior councillors fully briefed on the course ofaction being taken by ACL. The Council remains committed to supporting ACL in order tomaintain its position as a strong business with a track record ofprofitability, securing growth for the local economy.

The ACL Board hasmade it clear it has a legal responsibility to its shareholders, employees andcreditors to recoup the money CCFC owes, and this action gives the footballclub the best chance of survival in the Football League. It prevents SISU puttingthe club into liquidation, which could see the end of the Club or itsre-emergence many divisions lower in the Football League.At a date in the next fewweeks, the High Court will consider the club’s financial position, and whetherit is fit to continue trading. If the High Court rules that this is not thecase, CCFC will be placed into administration.If the High Court determinesthat CCFC should be placed into administration, the High Court will thenappoint an administrator to sell CCFC to a buyer that is able to restorefinancial stability to the Club.It will provide for aninterim 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.As I said in January, whenwe 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 ofone of our greatest assets – as long as we do this while protecting theinterests of our residents. I will continue to keep you updated when there arefurther developments.
As ever, please feel free todrop me a line to let me know your views if you would like to; I will try andrespond to you all as quickly as possible
Martin Reeves

Chief Executive
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[torchomatic]

Could you take all the formatting out to make it readable?

 

[Gaz]

My eyes !!

 

[Jack Griffin]

give a link.. save our eyes

 

[Macca]

Am I missing something? Appears to be in English

 

[Flying Fokker]

Is that good enough?

 

[TrueSkyBlueLiam]

Alas, what are these strange markings?

 

[torchomatic]

Thanks, FF.

 

[Flying Fokker]

Alas, what are these strange markings?

Dude? You alright? Looks ok from here.

 

[torchomatic]

Interesting stuff. But surely SISU can indeed liquidate the club if no buyer is found?

 

[Flying Fokker]

I think once the administration is in place the only people who can shut us down is the administrators.

 

[Lord_Nampil]

Interesting stuff. But surely SISU can indeed liquidate the club if no buyer is found?

That's the worry!!!

 

[torchomatic]

You could be right, but I'm not so sure, which is why I think this is a massive gamble by ACL. They could be securing their future or slitting their own throats.

I think once the administration is in place the only people who can shut us down is the administrators.

 

[Grendel]

I think once the administration is in place the only people who can shut us down is the administrators.

Partly correct however several pitfalls await;

We need a new buyer -- there is not likely to be many looking at the state the club is in and the ground cannot form part of negotiations
ACL now will not get any back payments - will they insist now to the administrator they receive the original monthly rent agreement out of available funds? Can they? Will they get anything when in administration?
Admin laws are complex - the ACL recommended administrators have a poor track record -- Luton and Leeds ended up with massive point reductions due to the way they exited administration -- we have a similar admin issue to Southampton in that ACL are actually not putting CCFC into admin but CCFC Holdings. This ended up protracted and a
Administrators have a duty to ensure the players receive payments -- they have no duty to find a buyer.

 

[mattylad]

sadly too many Cov fans are blinded by hate for SISU too get their heads out their arses and understand just how dreadful administration will be, the darkest days are still ahead

 

[Black6Osprey]

I'm afraid this has liquidation written all over it. Without ownership of the ground no one is coming to save us. Last time around the Higgs share was £10m and the council wanted £40m for their share (not like them to be so generous) ACL make currently £1m profit per year so only 50 years to get your investment back. I'm sure we'll have people queuing round the block for that deal but as long as SISU have gone we will be happy with coats for goal posts or so I understand.

 

[Gaz]

It does seem that some Cov fans are rejoicing in the fact we could very well be going into admin but then strangely thinking somehow Sisu will be turfed out of the club for some mystery American owners to come in and save the day.

There wasn't a long que looking to take us over when Sisu came in, so I doubt there will be now.

 

[Sky Blue Pete]

sadly too many Cov fans are blinded by hate for SISU too get their heads out their arses and understand just how dreadful administration will be, the darkest days are still ahead

May be less dark because of the acl action but you maybe can't see that with you head up your arse!!!

 

[Sky Blue Pete]

I'm afraid this has liquidation written all over it. Without ownership of the ground no one is coming to save us. Last time around the Higgs share was £10m and the council wanted £40m for their share (not like them to be so generous) ACL make currently £1m profit per year so only 50 years to get your investment back. I'm sure we'll have people queuing round the block for that deal but as long as SISU have gone we will be happy with coats for goal posts or so I understand.

What's the alternative?? Least worst I think to be fair

 

[Sky Blue Pete]

It does seem that some Cov fans are rejoicing in the fact we could very well be going into admin but then strangely thinking somehow Sisu will be turfed out of the club for some mystery American owners to come in and save the day.

There wasn't a long que looking to take us over when Sisu came in, so I doubt there will be now.

No queue required just one set of investors to work with.

 

[BrisbaneBronco]

Interesting stuff. But surely SISU can indeed liquidate the club if no buyer is found?

Exactly, and that's the big worry.
Also, if a new buyer is found, I get the impression that ACL/Council will not sell them the stadium either.
Without 100% stadium ownership we will not survive.

 

[Flying Fokker]

ACL may end up holding the baton if that is the case. Until they are ready to pass it on. Note sure they would want that scenario but they may be forced in to it.

 

[sky blue john]

All the usuall suspects are coming out to do their scare mongering !!!

Let me remind you again it is ADMINISTRATION !!!!
not liquidation !!!!

 

[mattylad]

May be less dark because of the acl action but you maybe can't see that with you head up your arse!!!

yeah when Harry Shaw and all the other support firms stop getting paid will be a day to really rejoice bcos at least SISU might be gone! But then why should we care some of these firms have only been tied into CCFC for 20 years or more! Like I said clueless!

 

[Macca]

yeah when Harry Shaw and all the other support firms stop getting paid will be a day to really rejoice bcos at least SISU might be gone! But then why should we care some of these firms have only been tied into CCFC for 20 years or more! Like I said clueless!

If SISU stay they will probably end up not getting paid

 

[Flying Fokker]

yeah when Harry Shaw and all the other support firms stop getting paid will be a day to really rejoice bcos at least SISU might be gone! But then why should we care some of these firms have only been tied into CCFC for 20 years or more! Like I said clueless!

Hmm. I don't think it happens quite like that once admin starts. But any historical debt is likely to be problematic. Harry Shaw. May choose to drive away. Rick is ready to step in though.

 

[Grendel]

ACL may end up holding the baton if that is the case. Until they are ready to pass it on. Note sure they would want that scenario but they may be forced in to it.

Nothing to do with them. Independent administrators could look at a business plan from them if they want to prepare one but unless it has long term viability they are not going to get accepted.

You don't seem to understand the law firm will now decide our fate and potential buyers are chosen by them.

 

[Black6Osprey]

All the usuall suspects are coming out to do their scare mongering !!!

Let me remind you again it is ADMINISTRATION !!!!
not liquidation !!!!

Yes we all know its administration but who in their right mind would take on this club. You are all hoping for some group of rich types to take it on as a toy. No businessman would take this on without accepting they've got to stump up minimum £50m for the ground or suffer losses year in year out or cut your cloth so League 1 or 2 is our permanent home. I've supported this club for nearly 40 years now but I wouldn't invest in such a shit deal, would you?

 

[mattylad]

Hmm. I don't think it happens quite like that once admin starts. But any historical debt is likely to be problematic. Harry Shaw. May choose to drive away. Rick is ready to step in though.

I work in this industry and that is exactly what happens normally followed by a ridiculous guarantee from the administrator that any costs ran up while they are in place will be paid! "so you owe me x and you wont pay but you still want to trade" "yes I would be delighted to tell you to go fook yourself"

 

[torchomatic]

But if no buyer can be found? ACL have said they "hope" and "believe" there will be someone there to take us on.

No buyer and SISU can liquidate.

All the usuall suspects are coming out to do their scare mongering !!!

Let me remind you again it is ADMINISTRATION !!!!
not liquidation !!!!

 

[Grendel]

All the usuall suspects are coming out to do their scare mongering !!!

Let me remind you again it is ADMINISTRATION !!!!
not liquidation !!!!

You sound desperate to pretend that this is not a possible outcome.

Everyone else says it is -- why not you?

 

[Black6Osprey]

It does seem that some Cov fans are rejoicing in the fact we could very well be going into admin but then strangely thinking somehow Sisu will be turfed out of the club for some mystery American owners to come in and save the day.

There wasn't a long que looking to take us over when Sisu came in, so I doubt there will be now.

Yes and we were in the Championship then and weren't in a league which next season will have an even tighter FFP rule of 60% of turnover on wages. Without owning the stadium new owners couldn't buy their way out of this league as expensive players carry high wages which our turnover currently doesn't allow.

So it's buy the stadium, plus develop land (as both acl an CCC have said this would have to be part of any sale) and then work within FFP. No problem I'll get my wallet out.

 

[Flying Fokker]

Nothing to do with them. Independent administrators could look at a business plan from them if they want to prepare one but unless it has long term viability they are not going to get accepted.

You don't seem to understand the law firm will now decide our fate and potential buyers are chosen by them.

Course I do. ACL may well have to present a viable business plan. They are of course a profit making company....... There you are toe in the door for more anti ACL comments.

 

[Grendel]

Course I do. ACL may well have to present a viable business plan. They are of course a profit making company....... There you are toe in the door for more anti ACL comments.

Not really -- if they are profitable and do not need the club they will not buy it - why turn a marginal profit into a whacking great loss over night and not even add a penny to the balance sheet. ACL have a duty only to their shareholders -- buying a loss making basket case will not be high on shareholders agenda especially as it has been suggested they still have no dividends.

 

[Covstu]

You sound desperate to pretend that this is not a possible outcome.

Everyone else says it is -- why not you?

I think people who are seeing admin as a positive are gravely mistaken. No club wants to go into admin and given the whole episode with ACL and SISU over the last 3-4 years about the ground etc we are not exactly a decent proposition and they certainly wouldn't get the club (and ground) 'on the cheap'.

I think we will struggle to get any decent bids for the club that wouldn't be any better off that the current arrangement. They have to buy the ground to even start thinking about making this club a decent business model (if you could ever do such a thing!!)