Coventry City could soon be out of the woods
Another long-running saga in the business of football could be coming to an end this week, as Coventry City looks set to emerge from administration in time for the new League One season, which kicks off on Saturday.
July 31st, 2013
After the twin tragedies of a rent row with their ground’s owners Arena Coventry Ltd, and being forced into administration as a result, the Sky Blues have seen another adjournment to the hearing at which it’s hoped they’ll agree on a CVA with their major creditors – including ACL.
Last month the club changed hands, with outgoing owners Sisu passing the deeds to Otium Entertainment Group – the fact that the same people sit on both boards is merely coincidental. OEG have been looking to get out of administration ever since, but have struggled to meet the rent demands placed on them, which at £1 million per year was the sort of price that the likes of Jimmy McMillan would strongly object to.
It was ACL which requested the final allowed adjournment of the meeting on Tuesday, and it will now take place this Friday – one day before City’s first game of the season away at Crawley Town. One week later, and if matters remain as they do right now, they will then host Bristol City in their first ‘home game’ of the season at the Sixfields Stadium in Northampton, 34 miles away, after a groundshare agreement was struck for the next three seasons.
Another development has since turned up, with ACL now offering to lower the rent to a figure between one and four hundred thousand pounds a month, dependent on which division of the League City are plying their trade in. This means that the club looks likely to come out of administration on Friday if they can agree a package with other creditors.