The application relates to Coventry City Football Club’s (CCFC) failure to pay Arena Coventry Limited (ACL), who own the Ricoh Arena, £1.3m in rent that ACL is lawfully owed for CCFC's use of the Ricoh Arena.
The application to the High Court now means that:
- At a date in the next few weeks, 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, the High Court will then appoint an administrator to sell CCFC to a buyer that is able to restore financial stability to the Club.
- 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.