CAC launch proceedings against Cardiff Blues Ltd

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Cardiff Athletic Club have issued a statutory demand to Cardiff Blues Limited for payment of outstanding rent owed in regards to the Cardiff Arms Park.

In a statement published to their website but then subsequently removed, CAC stated at the February AGM it was “overwhelmingly approved that if rent arrears owed by Cardiff Blues were not cleared by the end of May 2019 legal proceedings should be taken.”

This is open to challenge though, as in the AGM proposal made by Christopher Nott, CAC Management Committee member and Cardiff Blues Ltd Director, there was no mention of May 2019, and indeed as per notes taken at the meeting, the timescale given was ‘a year to 18 months’.

The statement went on to say the Management Committe agreed to issue a statutory demand for the money on the 1st June, but that an administration error meant this was not issued as instructed.

In that time Cardiff Blues Ltd informed CAC a financial package had been arranged which would guarantee settlement of the rent arrears by the end of June, but that the lender had set certain conditions that had to be met by CAC which they could not meet.

Aside from this, CAC claim “the attachment of any conditions to the settlement of rent arrears is a breach of the terms of the lease between Cardiff Athletic Club and Cardiff Blues Ltd.”

The statement finished by acknowledging the “tough financial environment for regional rugby”, but stating that “the Management Committee has a duty to all five of it’s sections, and the absence of rental payments…has impacted on the operations for all sections of the club.

CAC have now issued the statutory demand in respect of outstanding debts, with Cardiff Blues Ltd then having either 21 days to pay the debt, or reach an agreement to pay it. If this does not happen CAC will then be able to apply for Cardiff Blues Ltd to be wound up.

The outstanding debt is believed to be somewhere in the region of £200,000 at the time of writing.

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