Coventry City on verge of administration

English Coventry City confirmed it will head into administration due to its economic issues, but is hopeful a savior will come along before the move becomes official.

The club has debts of GBP 37 million, but still are banking that a potential takeover by former standout Ray Ranson and SISU Capital will be completed before the club officially goes into administration.

Chairman Joe Elliot said the club still was in takeover talks with Ranson and his group, and remained hopeful a deal could get done.

"This legal notice gives Coventry a 10-day window to complete the takeover talks," the club's board said in a statement. "This is merely a legal process protecting the bank and its creditors. It should speed up the takeover of the club and therefore take Coventry into a solvent financial situation."

Elliot said the club never has recovered from Premier League relegation, heading into the second tier with a GBP 60 million debt strapped to it. The debt has been reduced, but not enough to save the club from a possible date with administration.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.