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Coventry City poised to exit administration 28 June 2013

The sale of insolvent Coventry City Football Club to Otium Entertainment Group was confirmed yesterday.

Although the sale has been finalised, the club will remain in administration until a CVA is issued and agreed by all involved parties.

Paul Appleton, joint administrator, said: “I can confirm that the asset sale by Coventry City FC Limited to Otium Entertainment Group has been completed.

“Otium has purchased the right and title to certain assets possessed in Limited including the shares in the Football League and the Football Association.

“I stress that that I have only been able to sell such right and title to these as Limited possesses because CCFC Holdings Ltd asserts beneficial ownership over them.”

The club entered administration in March but have been embroiled in disagreement with Arena Coventry Ltd, owners of the Ricoh Arena where the club play, since last year.

Appleton explained: “This has been no ordinary football administration and I have tried to undertake a sale process which allows the Club to compete in all of next season’s competitions.

“Obviously, one of the key points now is to determine where the Club plays its football next season, but that is a matter for the purchasers and the Football League.

“In this regard, the offer made by ACL to allow the Club to play at the Ricoh was dependent on Limited remaining in administration and was based on the mistaken belief that Limited had the ability to field a team.

“However, as I’ve stated on many occasions, it is Holdings which employs the players and, consequently, Limited was never in a position to take up the offer.”

 

 

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