Free Radio report a Statutory Demand issued to CCFC (1 Viewer)
- Thread starter covmartin
- Start date
skyblueman
New Member
Here we go................... 
oldskyblue58
CCFC Finance Director
Thought it might be useful to post what the proceedure etc is so this link is helpful
https://www.gov.uk/statutory-demands/overview
It could have been worse, ACL could have gone straight to a winding up order - much like HMRC would or do. It is likely that ACL are working closely with their bank and the bank will want to allow as much time as needed to settle it but force SISU to the table.
https://www.gov.uk/statutory-demands/overview
It could have been worse, ACL could have gone straight to a winding up order - much like HMRC would or do. It is likely that ACL are working closely with their bank and the bank will want to allow as much time as needed to settle it but force SISU to the table.
fernandopartridge
Well-Known Member
Aye, think ACL are trying their best to resolve this 'peacefully'. Are they beyond arbitration now?
Lord_Nampil
Well-Known Member
If they can't afford it though, they can't afford it! So what happens then???
skyblueman
New Member
Don't worry they will pay - or reach an agreement with ACL an pay that.... SISU have too much invested to let it all go over this - apart from anything else it would be an admission they failed and lost someone a shedload of cash - as long as they are still here they have a chance of it coming good - very slight one granted
skyblueman
New Member
Who's that then????
The Reverend Skyblue
Well-Known Member
It all has to come to a head in the end and at least in 21 days we will know a little more where we stand, hopefully.
It is going to be an interesting start for Cov in 2013, hopefully this bloody mess will get sorted, and the stadium and SISU's motives and plans for the future will be a little clearer.
I can state as FACT, and i hate when that word is mentioned , but we all know who is going to know what is happening, or has happened last, yes us the fans, and the clubs greatest asset
The Rev
It is going to be an interesting start for Cov in 2013, hopefully this bloody mess will get sorted, and the stadium and SISU's motives and plans for the future will be a little clearer.
I can state as FACT, and i hate when that word is mentioned , but we all know who is going to know what is happening, or has happened last, yes us the fans, and the clubs greatest asset
The Rev
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SkyBlueScottie
Well-Known Member
OSB, how long can sisu hold out on paying, I like many instantly thought they will pay up with a minute to go of the 21 days, or can they come to the table with a minute to go to "start" discussions on an agreement.?
In my opinion they will take the longest drawn out route possible.
In my opinion they will take the longest drawn out route possible.
oldskyblue58
CCFC Finance Director
I would guess that ACL probably made an offer to CCFC/SISU to accept a lower rent so long as the club paid some of the arrears over a period of time. I would also guess this was rejected because their end game has nothing to do with the rent and everything to do with crippling ACL so that SISUpick up the whole site cheaply then sell it on for a profit thereby recouping their investors money.
Will be interesting to see SISU's next step. Either :
- they come to the table and negotiate a new rent deal and a settlement of the arrears or
- they could go in to administration which we all know could take a lot of time and still not pay the rent which could really tests ACL's cashflow. Although an administrator is liable for any debts whilst in charge so thats not quite so straight forward. Of course ACL would be within their rights to shut the doors on the club until settlement reached or
- they could let ACL wind them up
Certainly SISU are testing the Council, Charity and ACL nerve. Right now unless ACL cracks I dont see how CCFC wins in this.
Will be interesting to see SISU's next step. Either :
- they come to the table and negotiate a new rent deal and a settlement of the arrears or
- they could go in to administration which we all know could take a lot of time and still not pay the rent which could really tests ACL's cashflow. Although an administrator is liable for any debts whilst in charge so thats not quite so straight forward. Of course ACL would be within their rights to shut the doors on the club until settlement reached or
- they could let ACL wind them up
Certainly SISU are testing the Council, Charity and ACL nerve. Right now unless ACL cracks I dont see how CCFC wins in this.
skyblueman
New Member
With the current cost base and ongoing losses - an administrator won't want to run this for long at all
Sky Blues
Active Member
21 days takes us to Boxing Day. Assuming Sisu decided to hold out until the very last minute, I doubt there will be a court open then, or even, possibly, into the New Year but when they do open ACL would surely be at the front of the line - just as the transfer market also opens... If Sisu don't have the money put aside what would or could they sell, if anything?
oldskyblue58
CCFC Finance Director
21 days but the clock stops running if meaningful talks are entered into.......... if SISU could say prove to a court that ACL are being obstructive then the stat order may be could be set aside and more time bought before the next action - but i dont see that ACL have been obstructive quite the reverse really. Going for administration could drag things out further than 21 days but if i were ACL and that happened I would say enough is enough and shut the doors on them..... it is CCFC in breach of the lease not ACL.
oldskyblue58
CCFC Finance Director
agreed - but there is a big fat fee waiting I would guess so will spin out to a max amount
Cyrus Christie ,Joe Murphy for starters.
Sky Blues
Active Member
Aye. I was thinking about Cody, but I dunno if they'd get a few bob for him though given he's been out of the side. If Sisu do have to turn to the transfer market to raise funds it would be a buyers market as the football world would know the club needed to raise a million sharpish.
skyblueman
New Member
OSB - can't an Administrator just terminate anyone's contracts as soon as he's appointed? That's how it works in the real world - I'm just not sure in the Football world? Can you clarify?
oldskyblue58
CCFC Finance Director
CT report and full ACL statement
http://www.coventrytelegraph.net/co...y-unpaid-rent-or-face-closure-92746-32370027/
I do not see that ACL had any other choice.
http://www.coventrytelegraph.net/co...y-unpaid-rent-or-face-closure-92746-32370027/
I do not see that ACL had any other choice.
CarpyCov84
New Member
Head this at dinner time today off a reliable source lets see what Sisu are made of
oldskyblue58
CCFC Finance Director
Think we get into the wierd and wonderful world of football creditors...... would need to pay up players contracts etc, and to have a chance of selling the club that is needs a going concern (or as best it can be in our case). The other staff though are certainly at risk if administrator appointed.
That would be the other staff of CCFC H - which is the company that has the lease I believe and immediately owns CCFC in the group structure. Has implications for CCFC staff though. TF i would guess is paid by SBS&L and his job/salary is safe
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I promised to share further updates with users of this Board as and when I was able. This is one of those moments. I’m sorry to have to share the news that earlier today the Arena Coventry Limited Board issued a Statutory Demand to Coventry City Football Club.
This wasn’t something meant for public consumption. The Board took its decision with a heavy heart and would have preferred it to remain a confidential business matter between ACL and CCFC. There is little to be gained from playing these dramas out in public. Sadly it seems, certain other parties do not share this view.
Where we go from here is up to Fisher and Clarke and Joy Seppala and her hedge fund, Sisu. The Statutory Demand gives the Club 21 days to pay the outstanding rent or face the legal consequences. In practice, this could lead to the Board petitioning the Court for an order to wind up the Club, or for Fisher and Clarke, as directors of CCFC, to declare the club insolvent. I think we all hope that it does not come to that.
Sisu’s refusal to pay what they owe, despite ACL’s best efforts has left the Board with little option but to take this action (and the Board has left no stone unturned). As a Board we have to act in the best long term interests of ACL and everyone associated with it. It has been made abundantly clear time and again to the Club and its current owners that their actions would not be allowed to compromise the business. They have rejected every offer and attempt to find a solution.
The attacks on ACL made by the Club's management through the media have been seriously misleading and raised unfounded fears. The fact is, ACL has a strong business and is building for the long term. Of course, ACL has been hurt by CCFC and Sisu’s refusal to pay its rent; we cannot allow this to cause lasting damage.
Be assured that the Charity as a shareholder is absolutely supportive of this action, sad though it may be. As I’ve said previously, Sisu stopped talking to us months ago; and the Trustees are not going to be bullied by anyone into selling their stake in this excellent business for less than its full value. We’re committed to the Arena for as long as necessary.
We all hope, deeply and sincerely, that Joy Seppala and Sisu respond to this action in a constructive and positive way, which includes paying what they owe and working with the Board to put the Club on an even footing. Nobody would be sadder than the Trustees,all long term Sky Blues fans, to see the Club fail, and we trust it will not come to that.
My apologies for the length of this post, but given the situation I felt a full update was in order. I will try to respond to questions (as ever) within the constraints of what is legal and appropriate for me to say in public.
This wasn’t something meant for public consumption. The Board took its decision with a heavy heart and would have preferred it to remain a confidential business matter between ACL and CCFC. There is little to be gained from playing these dramas out in public. Sadly it seems, certain other parties do not share this view.
Where we go from here is up to Fisher and Clarke and Joy Seppala and her hedge fund, Sisu. The Statutory Demand gives the Club 21 days to pay the outstanding rent or face the legal consequences. In practice, this could lead to the Board petitioning the Court for an order to wind up the Club, or for Fisher and Clarke, as directors of CCFC, to declare the club insolvent. I think we all hope that it does not come to that.
Sisu’s refusal to pay what they owe, despite ACL’s best efforts has left the Board with little option but to take this action (and the Board has left no stone unturned). As a Board we have to act in the best long term interests of ACL and everyone associated with it. It has been made abundantly clear time and again to the Club and its current owners that their actions would not be allowed to compromise the business. They have rejected every offer and attempt to find a solution.
The attacks on ACL made by the Club's management through the media have been seriously misleading and raised unfounded fears. The fact is, ACL has a strong business and is building for the long term. Of course, ACL has been hurt by CCFC and Sisu’s refusal to pay its rent; we cannot allow this to cause lasting damage.
Be assured that the Charity as a shareholder is absolutely supportive of this action, sad though it may be. As I’ve said previously, Sisu stopped talking to us months ago; and the Trustees are not going to be bullied by anyone into selling their stake in this excellent business for less than its full value. We’re committed to the Arena for as long as necessary.
We all hope, deeply and sincerely, that Joy Seppala and Sisu respond to this action in a constructive and positive way, which includes paying what they owe and working with the Board to put the Club on an even footing. Nobody would be sadder than the Trustees,all long term Sky Blues fans, to see the Club fail, and we trust it will not come to that.
My apologies for the length of this post, but given the situation I felt a full update was in order. I will try to respond to questions (as ever) within the constraints of what is legal and appropriate for me to say in public.
oldskyblue58
CCFC Finance Director
In theory CCFC are charged by CCFCH for the rent, stewards, match day costs etc. Looks like the lease is with CCFCH from looking at the accounts.
Could SISU let CCFCH go to the wall and move CCFC to direct ownership by say SBS&L. Still have to find somewhere to play though. Sounds easy and other clubs would welcome the income but SISU cant get out of the stadium because they dont want to lose the opportunity of getting the site cheap. If they played elsewhere then they are liable for two lots of rent. If they broke ties entirely then they would lose the "in" on the site. ACL however if CCFCH goes to the wall does not have to accept CCFC as a new tenant, and we would be at todays situation once more - waiting for SISU to come to a reasonable compromise with ACL. All seems a complete mess at CCFC to me - but you have to suspect SISU have a plan that covered this
could you comfirm who actually holds the lease PWKH please ?
Could SISU let CCFCH go to the wall and move CCFC to direct ownership by say SBS&L. Still have to find somewhere to play though. Sounds easy and other clubs would welcome the income but SISU cant get out of the stadium because they dont want to lose the opportunity of getting the site cheap. If they played elsewhere then they are liable for two lots of rent. If they broke ties entirely then they would lose the "in" on the site. ACL however if CCFCH goes to the wall does not have to accept CCFC as a new tenant, and we would be at todays situation once more - waiting for SISU to come to a reasonable compromise with ACL. All seems a complete mess at CCFC to me - but you have to suspect SISU have a plan that covered this
could you comfirm who actually holds the lease PWKH please ?
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Evans020
New Member
I personally can see no other outcome than administration for ccfc..I think this is the ONLY way the club would get a respectable owner/ takeover.either way I'm not overly concerned about liquidation or closure as I believe that won't happen..you can't blame acl for their actions here..as its in line with business conduct and probably long overdue..either way thanks for your post
Sky Blues
Active Member
PWKH,
Thank you, as ever, for taking the time to come on here and keep us informed to the best of your ability. I realise you may not want to say, but are you able to tell us whether the "certain other parties" you mention in the quote below include Sisu? If it was not ACL that chose to release today's information that would suggest "certain other parties" want to paint ACL in the media as "the people who want to close the club". I notice in the CET article no other party is quoted - although this is clearly a developing story.
Thank you, as ever, for taking the time to come on here and keep us informed to the best of your ability. I realise you may not want to say, but are you able to tell us whether the "certain other parties" you mention in the quote below include Sisu? If it was not ACL that chose to release today's information that would suggest "certain other parties" want to paint ACL in the media as "the people who want to close the club". I notice in the CET article no other party is quoted - although this is clearly a developing story.
PWKH ,I feel ACL need to put the detailed information out there in the PR war which the media fail to question from the clubs side ,or pundits claims like Fletcher "It has cost the club £70M. to now", going unchallenged and repeated ad nuasium on CWR. Also the financial benfit to CCFC of gaining revenue streams which as outlined many times on here by OSB are negligable,couple that with fFshers missinformation on the the clubs equitisation of debt which is fantasy.
