Pay Up Pompey,Pompey Pay Up!

[jonny72]

I'm wondering if he'll get away with taking ownership of the ground in exchange for wiping out £10m of the debt he is owed, as he's basically ensured he gets a good chunk of his money back whilst shafting the other creditors in the process. Wouldn't surprise me if HMRC challenge the ground sale in court.

They will need to go in to administration before the winding up petition is held, otherwise if it is granted there is little chance of them getting it reversed afterwards (you can appeal a winding up order within 7 days but you'd have to have pretty good grounds for succeeding).

I have read some reports suggesting that the courts might refuse to grant the club administration, as the debts and finances are so bad. Not sure whether that can or is likely to happen though. Plus its possible the administrator would wind the club up on the spot anyway, especially if the debts are only going to increase over the coming months.

[pauld]

I'm wondering if he'll get away with taking ownership of the ground in exchange for wiping out £10m of the debt he is owed, as he's basically ensured he gets a good chunk of his money back whilst shafting the other creditors in the process. Wouldn't surprise me if HMRC challenge the ground sale in court.

I was wondering that - wouldn't he essentially have forcibly taken over a business, asset-stripped it's one tangible asset then chucked it into admin/possible folding so no-one else gets anything but he gets a nice chunk of property out of the ruins?

[Summerof69]

Can HMRC stop them from going into admin if they have a winding up order against them ?

No, only a judge can put a business into admin, but HMRC can and will play fun and games when they try and do a CVA and give all creditors around 10p in the pound, as proved with Leeds.

[alanmayes]

Here's a quote today from Chainrai's spokesman Phil Hall.Unbelievably the reaction from a large
section of Pompey fans, is to thank Chainrai and to pat him on the back!


''Administration would mean the club re-emerging as a healthy financial entity. The club would then become an attractive proposition for a potential buyer who could invest new funds in rebuilding the club's future.

We would like to ask the fans, the staff and management of Portsmouth Football Club for their support and patience should this step be taken, as they believe it is the only route left open to them.

The serving of this notice means the winding-up order is automatically suspended. It means the club is safe, it can fulfil its fixtures and as far as is possible it is business as usual.

Mr Chainrai hopes the supporters will get fully behind the team as usual for their Premier League match at Burnley on Saturday and the following weekend's FA Cup quarter-final at home to Birmingham.

Mr Chainrai has agreed to continue funding the club going forward until its long-term future is decided. He will also pay for the administration process out of his own pocket."

[jonny72]

No, only a judge can put a business into admin, but HMRC can and will play fun and games when they try and do a CVA and give all creditors around 10p in the pound, as proved with Leeds.

Bates originally offered 1p in the pound, he eventually upped the offer to 8p in the pound which was rejected. Not sure the final deal was ever made public, I can't find any record of it.

But the magic figure for a CVA is approval from 75% of the debtors (by ££££). The latest figures suggest the total debt is £70m with HMRC owed £18m, which would give HMRC the 25% they need to block the CVA - which they will do, they'll want payment in full or Portsmouth shut down.

[chalkies_shorts]

All that money for one FA Cup, Prem status for a handful of years and David Nugent. They virtually went backrupt in 70s and wetn down to the bottmo division - i can see the same happenning again.

[Summerof69]

Of course, they could get our old mate Andy Andronikous as the administrator...

[chalkies_shorts]

I thuoght only Diamond Mike appointed him.

[pauld]

I thuoght only Diamond Mike appointed him.

Nah, although I think Diamandis is the only one who brings him quite so much repeat business!

[Summerof69]

Reported in the Sun this morning (spot the spelling mistakes) :

Andrew Andronika from administrators Harper Young has already been lined up to move in tomorrow to try and settle debts of more than £70m, including £18m to the taxman.

[Ardiles]

In the Metro, words to the effect that....

Should they go in to administration, the points deduction would mean certain relegation and a lengthy rebuilding spell in the Championship.

Have to admit that, if I was a Pompey fan, I would be very happy right now with a lengthy spell in the Championship.  The reality, I think, will be rather less rosy than that.  I think they're about to get to know the lower leagues quite well.

[Summerof69]

If they go into admin on Friday, they have to come out by the start of next season with an agreed CVA, or they will probably have another 15 point penalty imposed in the Championship.

[jonny72]

If they go into admin on Friday, they have to come out by the start of next season with an agreed CVA, or they will probably have another 15 point penalty imposed in the Championship.

Once a club is in administration, how long do they have to come out of it before additional points penalties?

I know there is an additional penalty (determined by the league) for not exiting administration with a CVA but I'm not sure on the rules regarding time scales.

[Summerof69]

Once a club is in administration, how long do they have to come out of it before additional points penalties?

They have to start the new season out of administration.

[Power to people]

Excellent piece on the BBC Blog

http://www.bbc.co.uk/blogs/mattslater/2010/02/portsmouth_fc_in_crisis_qa.html