League One side in deep trouble.
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League One side Coventry City face starting the new season with at least a 15 point deduction after part of the club moved to the brink of liquidation following a final creditors’ meeting this morning reports BBC Sport.
The owners of Ricoh Arena have rejected a Company Voluntary Agreement (CVA) that would have secured payments to creditors and would have also allowed the club to exit administration.
Arena Coventry Limited (ACL), who are in a bitter dispute with the Sky Blues over rent which has resulted in them agreeing a groundshare with Northampton, had proposed some significant changes to the original CVA on Tuesday.
The offer included a reduced terms 10-year lease which could have seen the club returning to the Rioch Arena for the new season.
But administrator Paul Appleton did not accept these proposals and instead the ACL refused to sign the CVA and voted against allowing Coventry to come out of administration.
The CCFC Limited Company now looks set to enter liquidation and the club could be docked a minimum of 15 points by the Football League unless administrator Appleton can somehow resolve the bitter clash off the club’s highly-controversial move to Northampton.
Steven Pressley’s side travel to Crawley tomorrow to kick off their League One campaign but will then play their first home game of the season 34 miles away at the Sixfields Stadium in Northampton against Bristol City next Saturday, although with the threat of a serious points deduction hanging over them.
A statement on the club’s website read: “It is with great regret that a proposed company voluntary agreement has been rejected by Arena Coventry Limited. It means CCFC Ltd is likely to be put into liquidation which is expected to result in a points penalty for the club going into the new season.
“The football club and the Alan Higgs Centre Trust accepted the administrator’s CVA, but the city council, through ACL, have chosen to reject it – leading to possible liquidation and the risk of a 15-point deduction.
“The club will hold urgent meetings with the Football League this afternoon to go through the next steps for the football club.”
Coventry were already deducted 10 points last season for going into administration and the Football League must now judge the situation.