Despite being a huge step towards The Sky Blues coming out of administration, the club remains in that position.
News of the sale came in a statement released this afternoon by joint administrator Mr Appleton.
The statement also raises doubts over whether Coventry City could be playing at the Ricoh next season – unless stadium owners Arena Coventry Limited changes the terms of its offer that matches could be played rent-free while CCFC Limited was in administration.
The Football League are still the ratify the sale by awarding the ‘Golden Share’ back to the club – which is the right to play in League One next season. However the Football League had previously indicated that they would not block the sale.
Meanwhile, Ricoh company Arena Coventry Limited was today still silent on whether it will seek to prolong the administration by blocking a creditor voluntary arrangement (CVA).
Detailed proposals for the CVA are expected to be issued to creditors by administrator Paul Appleton early next week – enabling a creditors’ meeting to go ahead in the week beginning July 15, when creditors will hear Mr Appleton’s proposals for returning a percentage of debts owed to them.
The Sky Blues and Arena Coventry Limited (ACL), who run the Ricoh Arena on behalf of joint owners the Alan Edward Higgs Charity and Coventry City Council, have been involved in a lengthy and bitter rent row which has been ongoing for around 16 months.
PAUL APPLETON FULL STATEMENT:
“I can confirm that the asset sale by Coventry City FC Limited to Otium Entertainment Group Limited has been completed.
“Otium has purchased the right and title to certain assets possessed in Limited including the shares in the Football League and the Football Association.
“I stress that I have only been able to sell such right and title to these as Limited possesses because CCFC Holdings Ltd asserts beneficial ownership over them.
“This has been no ordinary football administration and I have tried to undertake a sale process which allows the club to compete in all of next season’s competitions.
“Obviously, one of the key points now is to determine where the club plays its football next season, but that is a matter for the purchasers and the Football League.
“In this regard, the offer made by ACL to allow the club to play at the Ricoh was dependent on Limited remaining in administration and was based on the mistaken belief that Limited had the ability to field a team.
“However, as I’ve stated on many occasions, it is Holdings which employs the players and, consequently, Limited was never in a position to take up the offer.
“The Football League have been kept closely informed of developments and I am continuing to work closely with them so that the process of transferring the share can begin.
“This will involve sending out proposals for a voluntary arrangement to creditors which will be considered at a meeting of creditors to be convened within the next three weeks.
“Over the last six to seven weeks, I have attempted to carry out the sale process in an open and transparent manner. I am grateful to have received acknowledgements both publicly and privately from a number of bidders to that fact.”