Football insolvency specialists from Walker Morris’s sports group have advised the operating company for Ricoh Arena on its application to the High Court to grant an administration order against Coventry City Football Club (CCFC). The application relates to £1.3m in unpaid rent.
Arena Coventry Limited (ACL) has requested that the matter be expedited because of the unique factors affecting a football club under the Football League’s regulations.
The case is due to be heard at the Royal Courts of Justice in London on 22 March 2013.
The application to the High Court now means that:
- The High Court will consider CCFC’s financial position and whether it is fit to continue trading. If the High Court rules that this is not the case, CCFC will be placed into administration;
- If the High Court determines that CCFC should be placed into administration, it will then appoint an administrator to sell CCFC to a buyer that is able to restore financial stability to the club; and
- It will provide for an interim period, pending the outcome of the hearing, during which other parties (including CCFC owner Sisu) will be unable to wind up or liquidate CCFC.