Andronikou has two targets
ADMINISTRATOR Andrew Andronikou says he has two aims for Pompey: to keep the club in the Championship and find a new buyer.
His announcement comes as the club applied to go into administration – with UHY Hacker Young the preferred administrators.
The application will be heard at the High Court on Friday and, if successful, Mr Andronikou will become administrator of Pompey with colleagues Peter Kubik and Michael Kiely.
Mr Andronikou, pictured, said: ‘We are looking to take over the club as soon as possible and drive home the sale. It is far more attractive in administration than as a going concern.’
The club has not been able to pay its bills for more than a week and a half, according to Mr Andronikou, after its bank accounts were frozen. He confirmed a validation order was lodged to unfreeze the accounts yesterday and said a hearing could be held tomorrow.
He added: ‘There were very important payments outstanding and it was the main reason why we are having to make an administration order. Things like the electricity bill. Everything needed to run a business, not just a football club.
‘Without working capital, you cannot run a business as significant as Pompey.
‘We know the club inside out. We will run the club, make necessary payments and scour the football community to find a buyer for the club.’
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Comments
There are 93 comments to this article
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BC we Trust pardon the pun
Thursday, February 16, 2012 at 03:37 AMThe previous CVA debt stands at 16mill approx which there is approx the same owed to the club in parachute. There is the 17mill owed to BC secured by his debenture of FP. Then there are approx 17mill of unsecured creditors this time around of which 10mill is the CSI & HMRC 2mill and presumably about 4-5mill of soccer and or trade creditors etc, of this 17 mill they wiill get about 2-3mill which will be the newCVA. The HMRC lost last time and their stance won't be entertained again in the newCVA. So a potential investor now saves 14mill quid basically. A new investor needs to (a) satisfy BC as to future payments or buy the FP off him now (b) make commitments on the old CVA presumably with understakings to use the parachute via FL to guarantee the oldCVA (c) Then they need to payguarantee the newCVA 2-3mill (d) invest 5mill to working capital and a transfer kitty some more? (e) be smart buy SG land and settle with BC and build commercial realestate around FB with some stunning condo's etc and other ideas, make a nice profit on that more than the investment in the club and turn the pitch 90 degrees and upgrade FP (f) but training ground with profits from developing land around FP ! Simples
Horshamblue
Wednesday, February 15, 2012 at 11:26 PMget rid of AA. and all the other crooks... We may have a chance of survival
bluelagoon
Wednesday, February 15, 2012 at 09:03 PM90 - wjd - "Some still talking about Administration or Liquidation. Surely, it has to be Administration." - Yes, of course it does; right now AAChainrai much prefer Administration. ----- "As long as they stay, am sure the club will not go into Liquidation." - No that doesn't follow at all. It would make good business sense, if a real buyer with real money hasn't come along, to choose a moment - after all possible player sales have been done and as many as possible parachute payments have come in without more than minimal funding put into the club - to liquidate it. Once they have control, possibly from tomorrow, we are looking at that scenario as a real possibility. Why not? Their considerations are purely business.
wjd
Wednesday, February 15, 2012 at 07:14 PMSome still talking about Administration or Liquidation.Surely, it has to be Administration. If you simply ask which represents the opportunity to get the best price for the club and for Chanrai the answer is Administration as Liquidation releases a fair amount of the assets with no return at all i.e. the players, whose contracts would be automatically cancelled. This is also why key younger players with reasonable values (Pearce, Ward, Henderson,etc) need to resist AA's desire to sell them. As long as they stay, am sure the club will not go into Liquidation. If they are sold, then we can really start to worry!
Pompey Crimes
Wednesday, February 15, 2012 at 06:33 PMMTH wrote"You know what all this Chanrai- Falcondrome business smells more foul then Southampton on Bin day............." That has been a most constructive and informative contribution to a serious debate about a football club that is on its knees. No wonder Pompey are losing support fast from other fans. Any sympathy I had for your situation flew out of the window following your very stupid remark.
bluelagoon
Wednesday, February 15, 2012 at 05:49 PMThe picture is coming together now - please see SJ Maskell's article on fansonline.net. Of course I cannot vouch for the facts as related. However, if what is described there is true, we now see what Chainrai-Andronikou are going for when (if) they get control in administration on Friday, and why that is so important to them. ----- First, Chainrai paid in £ quarter million to PFC last December (note: December) on condition there would be player sales in January. Except for the Ryan Williams mini-transfer, there weren't any. Chainrai and Andronikou are angry. Lampitt was asked on Express FM this week whether Chainrai had paid the January wages for PFC, as reported in the press. Lampitt said no, he hadn't. Well, that's because the money from Chainrai arrived in December (says Maskell) and by the time wages day came round for January, no wages could be paid and weren't! So Chainrai didn't pay them or part-pay them! But Lampitt didn't mention the funds from Chainrai at all. Why not? Work it out. ----- Chainrai has a charge on PFC. But he had (AFAIK) invested nothing into PFC since the last time he had the charge, which could weaken his claim. By paying the £ quarter million in, he re-asserts it. And there are people on the board who think that Andronikou "will do a good job for Pompey".
pompey mer
Wednesday, February 15, 2012 at 05:46 PMThanks for all the info Chaps, must say we were dissapointed with the Numbers last night. The club should be looking at selling the seats much cheaper, £10 or £5, I would rather see Bums on seats than an empty Milton end and it £10 or £5 more than the club gets than nothing at all. We paid in full for our season tickets and that was our choice. PUP
The Bean Counter
Wednesday, February 15, 2012 at 05:33 PMLagoon: the answers will be no (why would he?) and no. I was confused when DL answered "put it this way, he hasn't received any interest from the club" however when asked about repaying Chanrai - would be interesting to know what he meant.
bluelagoon
Wednesday, February 15, 2012 at 04:56 PMLeaving aside for the moment that we have less than two days to save Pompey from Andrinikou at PFC ---- During his interview this week on Express FM, David Lampitt was asked by Mark Mudie whether Chainrai had paid money into the PFC account to cover players' and staff wages. Lampitt asked whether Mudie meant January wages. Yes, said Mudie. Lampitt said, no, that didn't happen. I should like to ask PFC whether Mr Chainrai had recently - say, in the last 3 months - paid anything into a PFC account, or tried to pay anything in, for example in December 2011? ---- Secondly, given that Chainrai is claiming a charge against PFC, apparently the same as his earlier, pre-last-admin charge, would that claim be strengthened by having "invested" in PFC since that earlier time? ----- I wonder if PFC would like to answer, especially the first question. I do not know what the facts are in this connexion, but it would seem to be interesting. (Thanks to POLers for raising these questions.)
harswa
Wednesday, February 15, 2012 at 04:52 PMThe 'two targets' make sense, as it will obviously be easier to sell a Championship club . AA will have an influence on the results if he becomes the administrator as he could sell the best players. I am hoping that his statement suggests that he would not intend to do so on the basis that his job of selling the club will be easier if we stay up.
The Bean Counter
Wednesday, February 15, 2012 at 04:37 PMPhil: I take it you mean Gaydamak (the real villain here imo), but I won't ask you to confirm or deny. Wise words on the administrator too - he works for the creditors and expecting him to do otherwise is inappropriate, even if that makes fans uncomfortable. Let's be honest though: his pig-headedness meant Pompey effectively got away with administration the first time around in comparison to other clubs on the playing side, not to mention coming out with a workable financial model model that provided enough scope to survive in the Championship (until CSI came in with their own ideas of course).
bluelagoon
Wednesday, February 15, 2012 at 04:20 PM81 - Eric, we are moving closer to one another's views... All on Pompey's side, thinking about what's best, knowing we actually can't do much. (Hate to see them "getting away with it, though....)
Eric the Halibut
Wednesday, February 15, 2012 at 04:13 PMI see what you're saying but I think a more 'independent' adminstrator will find it very difficult to come to any other conclusion other than liquidation anyway. As you say, he or she will have to look after all the creditors rather than just one and maybe, just maybe, that one major creditor's interests is best fulfilled by keeping the company going, by hook or by crook (pardon the pun). As you say, as if we have any say in the matter. And being honest, I accept that gut feels are not always right. Such a torrid time. I just wish it was over - one way or the other. :-(
bluelagoon
Wednesday, February 15, 2012 at 03:51 PM75 - Certainly, I respect your views, we're having a good discussion. That is often the way to dig truth out, bringing in thoughts that the other person didn't have yet. ---- My own view is that liquidation is most likely if UHY-Andronikou gets appointed. Why? Chainrai will want as much of "his" money (that's a separate debate) back as he can get. He has said he will not fund the company and I believe him. It looks like there are no serious buyers around with real money (I exclude for present purposes the ones who Andronikou may now pull out of his sleeve to impress the judge on Friday). He can therefore draw on: (1) player sales, if these are permitted as "emergencies" by the football authorities, maybe a few million; (2) Fratton Park (he might just seize it and wait); (3) the parachute payments. He'd have to wait for a long time to get them all, but he (or Andronikou) can work out the optimal "wait for instalment number so-many" before - why not? - liquidating. If there is still no serious buyer, liquidation makes sense. The best business sense. ---- Why do I want a different administrator (as if I had any say in it!) - Because I too have a feeling, namely that a different administrator could legitimately look at the matter differently, and try to do what is best for the creditors (he's legally obliged) *but also Pompey as a functioning football club in the long term*. --- That's why I say: 48 hours to stop Andronikou!
Eric the Halibut
Wednesday, February 15, 2012 at 03:28 PMDid I say any of them were fine gentlemen? What I said is that I feel that AA is the lesser of evils and perhaps DL did too. As was said in Post 75, he is possibly the best person able to prevent the club being wound up. Some people seem to prefer liquidation and a rebirth of a Phoenix Club - the so called Plan B. I respect that view but I don't share it. Please respect mine that liquidation would be the death of Pompey and any new club arising for the ashes would be just that - a new club, not Pompey and not for me.
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