DCSIMG

Administration hearing Q&A

Chief reporter Chris Owen answers some of the questions being asked by fans

Q What does ‘going into administration’ mean?

A It will mean that Pompey will stop wracking up bills and sliding further into debt. Simply, it protects a company from being wound-up/liquidated (going out of existence) and means the people it owes money to will get a proportion of their money back, rather than nothing.

Q Why does the club favour this option?

A Pompey were issued with a winding-up petition by HM Revenue and Customs on January 3 over unpaid tax and they were due at the Royal Courts of Justice next Monday<FEB 20> for that hearing.

The club pre-empted this by applying to go into administration. A company in administration cannot be wound up.

Q ...and ‘winding up’ means?

A If they were wound up, Pompey would cease to exist. There would be no games, no team, and Fratton Park would be empty.

Q Will HMRC oppose the club going into administration?

A It is likely that HMRC will oppose it because the tax man would rather try to get all its money back than only a proportion. If Pompey was liquidated, all its assets would be sold off and HMRC would hope there’d be enough left to cover its tax bill.

Q Given there are objections to Andrew Andronikou becoming the club’s administrator what powers does the court have?

A UHY Hacker Young, which Andrew Andronikou works for, is Balram Chainrai’s preferred firm to oversee the administration, but other creditors have the right to oppose this and suggest another firm comes in. The court has the power to grant this change.

Q If another firm is appointed administrators, will UHY Hacker Young still be hanging around Fratton Park?

A No. UHY will still be in charge of the administration of Convers Sports Initiatives (Pompey’s former parent company), and as such would have to deal with the administrators of Pompey because the club owes CSI money. They would not have anything to do with the club itself.

Q If the administration application goes through when do they lose 10 points?

A Straight away.

Q Who’s the judge?

A The Hon Mr Justice Norris. Sir Alastair Hubert Norris has been a High Court judge in the Chancery Division since 2007 - the year he was knighted. His favourite pastime is sailing.

 

Comments

 
 

Back to the top of the page