City Will Honour Its Obligation To The Football League

Last updated : 31 May 2014 By Covsupport News Service

Coventry City have said that they will pay Arena Coventry Limited £590k but are awaiting clarification on how much is actually owed.

The Sky Blues were told by the Football League to pay ACL £590K on or before May 31st, towards unpaid rent.

The club have issued the following statement:  "We would like once again to reassure fans that the club will honour its obligation to the Football League. It is totally wrong to suggest otherwise. 

"We have undertaken to the League to pay ACL the amount that is legally owed to them. ACL rejected this payment, which they could have received last summer, in order to start a liquidation process and cause a points deduction.

"So the only person who can determine the correct amount to be paid is the liquidator.  

"As instructed by the League, the club has already paid a large sum of money into an escrow account, ready for payment to ACL as soon as the correct number has been calculated.  

"There is some uncertainty as to the correct amount because it appears that ACL may already have been paid monies under personal guarantees, which amounted to £500,000. 

"If this is the case, there is a risk that they might be paid twice over.  As soon as this uncertainty is resolved, the correct sum can be determined and released to ACL from the escrow account."

Full story - http://www.coventrytelegraph.net/news/coventry-news/confusion-over-football-league-deadline-7195827