Sky Blues call EGM
Coventry City Football Club have called an Extraordinary General Meeting to ask shareholders whether the club's option to buy back ownership of 50 per cent of the Ricoh Arena should be transferred to acting chairman Geoffrey Robinson from the the Alan Edward Higgs Charity as security for loans he has made to the club.
Robinson told shareholders in a letter: 'Over the last 4-5 years, the club has survived only because of loans made by me personally to the club and my personal guarantees to the club's bankers - The Co-operative Bank PLC. Such direct loans total in excess of £11,000,000 and my personal guarantees amount to £8,000,000.
'I agreed to provide additional and extended guarantees to the club following the said Bank's requirements on condition that the club's options over shares in Football Investors Limited pursuant to a Joint Venture Agreement dated 19 December 2003 was assigned to me absolutely.
'The material value of such option is quite insufficient to cover my current risks.'
The move is seen as the next step in the takeover of the club by Manhattan Sports Capital Partners although former Newcastle boss Graeme Souness has also been linked with a deal to buy the Sky Blues.