Guy on twitter claims to have a reply from league confirming Otium have been rejected (1 Viewer)

[Godiva]

I'm saying if Otium are not fit and proper, there is another bid and we sell to them, people are saying we will get a 15 point deduction because sisu wouldn't accept a cva, im saying how can you come out of admin without a cva? as that means the creditors don't accept what you are willing to pay and so you would surely be liquidated, which means actually sisu probably would accept a cva or am I misunderstanding?

The company can only be liquidated by the administrator if no new owner can be found - OR if the NEW owners decide. The new owners can be Otium or anyone else selected by the administrator.

 

[Dhinsa's_Millions]

If this does drag on we will be in League 2 the following season.

I doubt very much a youth team side,a 15 point deduction, and a huge decrease in revenue meaning a sale of our 'best' players (even if we are at the Ricoh) would allow us to compete in this league.

 

[dadgad]

While I think we all agree on this. It is probably more important what he in law was correct. PH4 himself said PA had done everything by the book. It just wasn't what we as fans wanted.

It isn't just about being technically correct.
Making the decision based on "the best interests of the club going forward" has resulted in this man choosing a business model which involves:
1) A business based on identity with a community leaving that community
2) A business not having a home/premises from which to run that business
3) A business not having concrete plans upon which to base any realistic timescale to rectify above points

In every way this was a dreadful decision

 

[Jack Griffin]

Hopefully Les Reid has some more info..

Les Reid ‏@Lesreidpolitics 1h
@skybluegilby @CityCoventry @skybluechick Yep, more to come from me later today on @covtelegraph website - should clarify some #ccfc matters

 

[NorthernWisdom]

If Otium is not 'Fit and Proper' and - for the argument - no other sisu companies are acceptable, then the administrator can sell to another bidder like PH4. This is where sisu may get a bit annoyed and refuse to leave the administration with CVA. The sale will still be executed but the club will be 'rewarded' with a 15 point penalty.

He can also choose to liquidate of course if the creditors would get a better return from that.

 

[jon92]

Any idea if it is a court ruling or just a deadline?

More then likely just a deadline

 

[chiefdave]

I'm saying if Otium are not fit and proper, there is another bid and we sell to them, people are saying we will get a 15 point deduction because sisu wouldn't accept a cva, im saying how can you come out of admin without a cva? as that means the creditors don't accept what you are willing to pay and so you would surely be liquidated, which means actually sisu probably would accept a cva or am I misunderstanding?

sorry, misunderstood you. you can't really come out of admin without a CVA however the key is if the CVA is accepted or not. If the sale involves a CVA that is not accepted by a certain % of creditors (75% rings a bell) then the sale can still go through but it becomes an unapproved CVA and that's when the -15 kicks in.

 

[Noggin]

If Otium is not 'Fit and Proper' and - for the argument - no other sisu companies are acceptable, then the administrator can sell to another bidder like PH4. This is where sisu may get a bit annoyed and refuse to leave the administration with CVA. The sale will still be executed but the club will be 'rewarded' with a 15 point penalty.

This is what I dont understand, how can the sale go forward if he creditors say no? or does the sale go forward with the debts intact?

Surely you can't run up 100 mill in debts, go into admin, buy it back for £1 with the creditors saying no and then owe nothing?

 

[Godiva]

He can also choose to liquidate of course if the creditors would get a better return from that.

That is true - but still, my understanding is his priority no 1 is to save the business going forward. The creditors return is priority no 2.

 

[torchomatic]

I think business models on both sides are laughable.

It isn't just about being technically correct.
Making the decision based on "the best interests of the club going forward" has resulted in this man choosing a business model which involves:
1) A business based on identity with a community leaving that community
2) A business not having a home/premises from which to run that business
3) A business not having concrete plans upon which to base any realistic timescale to rectify above points

In every way this was a dreadful decision

 

[Godiva]

This is what I dont understand, how can the sale go forward if he creditors say no? or does the sale go forward with the debts intact?

Surely you can't run up 100 mill in debts, go into admin, buy it back for £1 with the creditors saying no and then owe nothing?

There is a formular - and right now I can't find that document - that describes the position of secured, non-secured and non-connected creditors.

But in short - in your example the main creditor can bid £2 and win the company back. The comapny's balance will be £100m improved (wiped debt) so the shares will be £100m more worth.

 

[NorthernWisdom]

That is true - but still, my understanding is his priority no 1 is to save the business going forward. The creditors return is priority no 2.

With SISU as the secured creditor, liquidation is more likely than in most cases.

Also no way this club would still be standing if it wasn't a football club, it's the only thing that stops it being wound up.

 

[dongonzalos]

In this case there are only two real creditors - ARVO and ACL. The current bid is suggested to pay off ACL in full - all £650k, so that should leave ACL with no grounds for not accepting (there's the compensation on the remaining of the lease to complicate things, but for the argument say there isn't). So the current bid should mean an exit where all creditors accept the terms and conditions. No points penalty.

If Otium is not 'Fit and Proper' and - for the argument - no other sisu companies are acceptable, then the administrator can sell to another bidder like PH4. This is where sisu may get a bit annoyed and refuse to leave the administration with CVA. The sale will still be executed but the club will be 'rewarded' with a 15 point penalty.

15 point penalty to play at the Ricoh with no SISU half if ACL bought with a view to the remaining half getting purchased in the future?

 

[wozey]

I will never understand most of you people.....yeah best thing for the club isn't it 6 weeks to go no idea if we will even start next season yeah perfect just what we all want

 

[Noggin]

LAME LAME LAME

Chad,

Thank you for making us aware of your petition and how well it is progressing.

At the moment The Football League would like to confirm that no decision has been made on Mr Paul Appleton preferred buyer of Coventry City FC and The Football League are due to meet in the next few days to discuss this.

The Football Leagues insolvency procedure is set out to ensure the future of any club going through the same as what Coventry City FC are and the points you made about Otium Entertainment Group in your email are something The Football League will have to look at during the coming meetings.

Please be aware this does not mean The Football League confirm that they have failed the insolvency process and a statement will be issued on our decision in due course.

The League will not comment further at this time.

Thank you for contacting The Football League.

Regards,

 

[covcity4life]

unfollow him!

 

[covmark]

What a crock of shit

 

[hill83]

For f*ck sake. Nothing to see here. F*ck off.

Sick of getting my hopes up! Here's another f*ck.

 

[Noggin]

I don't think he could possibly have believed that said what he suggested, in fact it very clearly states that it doesn't mean they have been failed. He should be unfollowed for sure. What an idiot.

 

[RegTheDonk]

I don't think he could possibly have believed that said what he suggested, in fact it very clearly states that it doesn't mean they have been failed. He should be unfollowed for sure. What an idiot.

From his Twitter...

"basically email says the FL believe Otium are to fail the leagues insolvency procedure"

So, he hasn't read the letter at all correctly, nowhere does it imply "FL believe Otium are to fail the leagues insolvency procedure".

Good luck with the petition, but don't bother posting crap to get people's hopes up.

 

[Delboycov]

Lost all the credibility he built up with the petition with just one stupid tweet! Well that bit of hope didn't last did it?!

 

[NorthernWisdom]

I don't think he could possibly have believed that said what he suggested, in fact it very clearly states that it doesn't mean they have been failed. He should be unfollowed for sure. What an idiot.

Yeah not even any room for doubt there, is there!

 

[lordsummerisle]

Chad, obviously being an American, doesn't understand the subtle differences between American English and English English.

 

[Dhinsa's_Millions]

Never trust a man called Chad!

Although judging by his previous posts (one totally slating the FL) why would they tell him first?

 

[shropshirecov]

Some people are so desperate for 'good news' they'll believe anything

 

[torchomatic]

Hero to Zero in 95 posts. God, we're fickle.

 

[RegiswasGod]

Clearly a joker who likes to waste peoples time. You could tell by the spelling on his petition letter that he wasn't exactly credible. Decent effort with the petition though, but nobody will have any respect for him at all after getting their hopes up like this.
Attention seeker, plain and simple.:jerkit:

 

[Noggin]

He's still saying thats what it means and he is still gaining followers, nuts

 

[Sky Blue Pete]

Annoying?!!!!!!

 

[RoboCCFC90]

Well there was a surprise!!

 

[_brian_]

There was a s**t Twitterer called Chad,
Who's comprehension was terribly bad,
He completely misread,
What the FL had said,
And ultimately gave a lot of fans who want to see the back of Sisu/Otium at all costs a false glimmer of hope before showing himself up to be either a complete and utter idiot or deliberately misleading (a bit like Fisher, some might say! LOL!!!) and now they have to reel themselves in and continue discussing whether they agree or disagree with the Not One Penny More campaign, and whether this only applies if we move out of Coventry and so on.

I think it started off well, but admittedly, I struggled with the last line.

 

[Delboycov]

There was a s**t Twitterer called Chad,
Who's comprehension was terribly bad,
He completely misread,
What the FL had said,
And ultimately gave a lot of fans who want to see the back of Sisu/Otium at all costs a false glimmer of hope before showing himself up to be either a complete and utter idiot or deliberately misleading (a bit like Fisher, some might say! LOL!!!) and now they have to reel themselves in and continue discussing whether they agree or disagree with the Not One Penny More campaign, and whether this only applies if we move out of Coventry and so on.

I think it started off well, but admittedly, I struggled with the last line.

Absolute quality!!

 

[Evo1883]

there once was a man called chad
whose twitter reports were so bad
he gave us all hope
till the FL said nope
and us fans realised we've all just been had

 

[TheHellion]

If ever something deserved a facepalm, then surely this is it....:facepalm:

 

[Nick]

What a bellend!