Just to comment on not a lot really frankly I think it is the CT filling up column inches by ..............
Sisu is a privately owned company that invests in a variety of projects and organisations using various legally approved and regulated entities in different parts of the world. No one has said that anything they have done is illegal (no one knows one way or tuther so you have to assume all above board however much we might dislkie what is going on) but SISU dont invest .... they manage their clients money who are the investors. This isnt a normal investment it is a series of loans - that isnt how the average person sees investment
“Sisu is both an owner of, and creditor to, Coventry City FC and, in line with any other creditor, Sisu has taken appropriate and necessary steps to protect its interests over the loans. Actually SISU are neither - they act as agents .... the club lists Sconset as the owners - a fund managed but not invested in by SISU edit but any other creditor cannot take a charge over the assets now and couldnt before because it would have needed SISU's approval
“Far from posing any threat to the ongoing existence of the football club, Sisu’s recent injections of capital by way of loans has ensured the football club’s survival during a very difficult period. Sisu’s absolute focus and priority, together with the club’s executive team, is to find a solution to bring together a closer alignment of the club and the stadium. BUT had they done their job right in the first place, provided credible management that knew what they were doing,( RR might have been the football expert but he was not the finance expert) .... then the club may well not have made the losses and loans in excess of £40m would not have been needed. The size of the loans and losses have a direct correlation to the mistakes SISU made in setting up and running the finances. They are funding their mistakes ! They are "investing" still because they are locked in and it is the only way to protect their investment - it isnt for the love of CCFC
edit - but directors or shadow directors (SISU exert control on ccfc ) have a legal duty to consider if company should continue to trade and this charge covers that situation first and foremost ..... ARVO/SISU retain any assets should the worst happen.... Sconset and the original funds made bigger loans and didnt get a charge but ARVO get the charge, why would that be if it is such normal business practice (charges are not unusual who gets the charge may be)
Of course they dont want it to fail but ARVO and its charge ensures any value there is goes on to be controlled by SISU by a company not involved in the financial management of the club so that makes it very hard for any other creditor to challenge SISU's actions over their period of control at CCFC. If SISU were found to be negligent then none of the assets could be claimed because they are charged against "loans" from another company (that just happens to be in bed with SISU)
“As such, Sisu and the club are currently engaged in detailed and constructive talks with Coventry City Council, Higgs Charity, and Arena Coventry Limited. “Should the various parties reach any form of agreement then detailed, transparent, and legally binding contracts will be put in place to safeguard the interests of all interested parties. You see I have a real problem with them using the words transparent ..... they keep saying it but it just doesnt happen ........ and transparency in this context has nothing to do with telling the fans what is going on. As mutton has said - there has to be a credible business plan for the whole process to go forward and for all sorts of reasons why would anyone trust what they are told by SISU. Yes at some point someone has to trust but SISU and the CCFC Board seem to adopt an arrogant superior attitude which is neither helpful nor likely to engender trust. The only thing SISU want safeguarded is their clients money and the management fees they earn from it - never lose sight of that
“Talks are progressing well but remain commercially confidential to the parties involved and at this time neither Sisu nor the football club are able to make any further comment.” Normal state of affairs and nothing sinister in that but they still choose how when and how much facts are known and regularly use the press (largely gullible) to strengthen their negotiations - dont like it the other way round though
It refused to give further details of Arvo’s business or value, amid concerns about the Cayman Islands’ reputation as a hedge fund tax haven shouded in business confidentiality. The CT fail to get the point ...... the important thing is not that the Hedge fund is based in the Caymans (that really is not unusual but makes a more eye catching headline)..... THE POINT IS THE ASSETS HAVE NOW EFFECTIVELY BEEN SEPERATED FROM THE CREDITORS AND THE SCONSET INVESTORS, CCFC NO LONGER CONTROLS ANY OF ITS ASSETS.
Is the charge over the CCFC assets an attempt to also charge the option to buy the shares ..... securing the price mechanism which could be valuable to a third party ......... my understanding is that the option agreement will fail if transferred charged or the club is in default. The Important value in the charge is not the dumb bells in the gym ...... it is the League registration, the value in the land, the trademarks, the online stuff and the share option
Mr Fisher said in January the five private equity funds initially set up by Sisu to invest in Coventry City FC were in 2010 “wrapped together to form a single entity, Sconcett Capital LP” - based in the Cayman Islands. There was then no mention of Arvo. Wasnt any mention until we we told the CT either
Sisu also refused to say if has a property developer/investor in place to invest in the Ricoh and surrounding land. Of course they wont thats not unusual and to be able to do this then they must have - wasnt there talk months ago (start of last season? ) that AEG were interested - they are a global company specialising in running stadiums ?The club - which has witheld its £100,000 Ricoh rental payments for two months (soon to be 3 months i would guess - puts the club in breach of contract and probably in breach of the share option agreement too) - says it wants a deal urgently to get its accounts signed off, which would lift a transfer embargo and get players in for the third division in August. Ricoh talks between Sisu and the Higgs charity have entered four weeks of “due diligence”, and no deal, if any, is thought possible by the Higgs charity for another seven weeks.
None of that guarantees a budget, or signing off the accounts or a deal for the shares - 7 weeks takes us into july to get a potential deal with the charity which then needs full council discussion and approval ..... Season starts 18th August ish ....... cant do accounts budget etc till then .......... what is holding the accounts and budget up is SISU no one else yet they are so unconvinced by their investment they cant sign a budget off yet pump in £500K + per month to support the club ..... no contradiction there then !