Debt Order Served Against Coventry City FC
Action Taken Against City
Arena Coventry Limited have now served a Debt Order against Coventry City.
ACL issued the following press statement this morning to explain their action."The board of Arena Coventry Limited (ACL) has today served interim Third Party Debt Orders on Coventry City Football Club following the collapse of talks around future rent and matchday arrangements. "The Orders have been served in respect of the club’s bank account, its card payment acceptance service account, its Business Rates Account with Coventry City Council and Huddersfield Town Football Club. "These orders, which are expected to be made final orders shortly, will then entitle ACL to lawfully collect any monies owed to the club by these third parties." "As of 1 February 2013, CCFC owes ACL £1.347 million in rent arrears. On 29 January, the ACL Board had put forward an agreement which not only reduced the rent to £400,000 a year but also waived £300,000 of those arrears - and set out generous terms to repay the balance. "It also agreed the principle of ACL matchday revenues benefitting CCFC, and ACL paying a larger share of rates on the stadium, the net effect of which would have been to reduce the matchday costs paid by CCFC from £1.2m per year to £150,000. "However, following the recent collapse of talks, the ACL Board has concluded that it has no choice to but to serve the interim Third Party Debt Orders. Nicholas Carter, Chairman, Arena Coventry Limited, said: "We don’t want to have to resort to such means as obtaining interim Third Party Debt Orders. "But if the Club won’t agree to the very generous deal on the table and pay what it lawfully owes, we have a duty to our stakeholders to take all the necessary steps to protect ACL’s interests. It’s our responsibility as directors to do all we can to make sure ACL gets paid." Read More http://www.coventrytelegraph.net/news/coventry-news/2013/02/15/no-headline-92746-32816252/#ixzz2Ky3sTW4h
Source: Coventry MAD
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