Monday December 3, 04:11 PM
Coventry City FC files to seek administration to pave way for takeover UPDATE
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LONDON (Thomson Financial) - Coventry City Football Club has filed an intent to seek administration in a bid to speed up a potential takeover of the club by entrepreneur and former footballer Ray Ranson.
The club, which reportedly has debts of up to 38 mln stg, said in a statement on its website that it had 'today filed in court notices of intent to go into administration'.
'This is merely a legal process protecting the bank and its creditors and should speed up the potential takeover of the club and therefore take Coventry City into a solvent financial situation,' the statement says.
The legal notice gives Coventry City 10 days to complete the takeover talks with the other parties, which include Ranson and Sisu Capital, the Championship football club said. Ranson played for Birmingham City (LSE: BMC.L - news) , Manchester City and Newcastle.
'Following recent speculation, the club can confirm staff and player wages have now been paid and we look forward to a successful conclusion of the takeover in the near future. Coventry City will not be making any further comment at this time,' the club said.
The Sky Blues face financial ruin unless an investor is found before the new year, the BBC reported on its website. A transfer embargo was imposed on the club in October.
Coventry has been seeking new avenues of investment since a number of potential investors withdrew their interest, the BBC said. If the latest talks fail and Coventry do go into administration, the team -- which is 14th in the table -- will be deducted 10 points.
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