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High Court delay to Sky Blues action against Coventry City Council
16 Jul 2013 07:52
It could now be September before a judge decides whether to hear Sisu's claims that the council was unlawfully seeking to seize control of the club
Ricoh Arena Ricoh Arena
A High Court decision over the Sky Blues’ application for a judicial review against Coventry City Council has been put back.
It could now be September before a judge decides whether or not to allow the application to proceed to a full judicial review hearing into Sisu’s claims that the council was unlawfully seeking to seize control of the club.
Yesterday saw the expiry of a three-month deadline for a judge to decide whether to “grant leave” for the appeal.
But the High Court yesterday said it was experiencing a backlog – and an initial decision was now “likely” to be in September, when judges return from the holiday period.
It came as the part-Coventry City Council-owned Arena Coventry Limited met with the Football League yesterday over its controversial decision to grant permission for Coventry City to play ‘home’ games at Northampton for up to three years.
ACL was tightlipped last night about the discussions, thought to have centred on whether or not the League will, or should, transfer its “golden share” right to play in the League to Otium, the Sisu-related company chosen by administrator Paul Appleton to buy Coventry City Football Club Limited.
ACL believes the club could still be in administration “for months” – even though it will be asked at a creditors’ meeting next Monday to sign a Creditor Voluntary Arrangement (CVA) to bring the club out of administration.
City chief: Why Sky Blues had to quit the Ricoh Arena
In separate action, three Sisu companies – Sky Blue Sports and Leisure Limited, Arvo Master Fund Limited, and Coventry City Football Club (Holdings) Limited – are seeking the judicial review against the council.
In papers signed by Sisu/Arvo boss Joy Seppala, the High Court papers served on April 15 accuse the council of acting unlawfully in seeking to “wrest control” of the club.
The documents, exclusively revealed by the Telegraph, focus on alleged talks last year between the council and the club over plans to jointly own the Ricoh Arena, and buy out its Yorkshire Bank mortgage for less than the £14million the council eventually paid for it.
Those talks collapsed, and the £14m taxpayer deal to alleviate financial pressure on the part-council owned Arena Coventry Limited was approved in January by councillors behind closed doors.
It came after months of the club refusing to pay £100,000-a-month rent to ACL for using the stadium.
The club claims the high price paid for the mortgage debt and the subsequent £14million loan to ACL contravened “state aid” laws, creating unfair competition after £45million investment in the club by Sisu.
In March, ACL sought to put the club into administration through a High Court order. The council claims it has “acted lawfully in all respects.”
16 Jul 2013 07:52
It could now be September before a judge decides whether to hear Sisu's claims that the council was unlawfully seeking to seize control of the club
Ricoh Arena Ricoh Arena
A High Court decision over the Sky Blues’ application for a judicial review against Coventry City Council has been put back.
It could now be September before a judge decides whether or not to allow the application to proceed to a full judicial review hearing into Sisu’s claims that the council was unlawfully seeking to seize control of the club.
Yesterday saw the expiry of a three-month deadline for a judge to decide whether to “grant leave” for the appeal.
But the High Court yesterday said it was experiencing a backlog – and an initial decision was now “likely” to be in September, when judges return from the holiday period.
It came as the part-Coventry City Council-owned Arena Coventry Limited met with the Football League yesterday over its controversial decision to grant permission for Coventry City to play ‘home’ games at Northampton for up to three years.
ACL was tightlipped last night about the discussions, thought to have centred on whether or not the League will, or should, transfer its “golden share” right to play in the League to Otium, the Sisu-related company chosen by administrator Paul Appleton to buy Coventry City Football Club Limited.
ACL believes the club could still be in administration “for months” – even though it will be asked at a creditors’ meeting next Monday to sign a Creditor Voluntary Arrangement (CVA) to bring the club out of administration.
City chief: Why Sky Blues had to quit the Ricoh Arena
In separate action, three Sisu companies – Sky Blue Sports and Leisure Limited, Arvo Master Fund Limited, and Coventry City Football Club (Holdings) Limited – are seeking the judicial review against the council.
In papers signed by Sisu/Arvo boss Joy Seppala, the High Court papers served on April 15 accuse the council of acting unlawfully in seeking to “wrest control” of the club.
The documents, exclusively revealed by the Telegraph, focus on alleged talks last year between the council and the club over plans to jointly own the Ricoh Arena, and buy out its Yorkshire Bank mortgage for less than the £14million the council eventually paid for it.
Those talks collapsed, and the £14m taxpayer deal to alleviate financial pressure on the part-council owned Arena Coventry Limited was approved in January by councillors behind closed doors.
It came after months of the club refusing to pay £100,000-a-month rent to ACL for using the stadium.
The club claims the high price paid for the mortgage debt and the subsequent £14million loan to ACL contravened “state aid” laws, creating unfair competition after £45million investment in the club by Sisu.
In March, ACL sought to put the club into administration through a High Court order. The council claims it has “acted lawfully in all respects.”