Doubts are raised about Chainrai’s £17m hold over Pompey
103686_POMPEY_DONCASTER_13/11/10 Balram Chainrai (centre) Portsmouth V Doncaster Rovers at Fratton Park, Portsmouth. Picture: Allan Hutchings (103686-2)
POMPEY’S administrator has cast doubt on Balram Chainrai’s financial hold over the club.
Trevor Birch said there could potentially be ‘doubts’ surrounding some aspects of a £17m debt – called a debenture – held by the Hong Kong businessman’s company Portpin.
He voiced his concern as former administrator Andrew Andronikou made a complaint to Institute of Chartered Accountants over his appointment, claiming he should not have been given the role due to a conflict of interest.
Discussing the debenture Mr Birch said: ‘That will be reviewed by me for its validity. We’ll have lawyers that will look at it and examine the transactions and we will see where it goes from there. There are aspects of it which might raise doubts.’
Mr Birch’s firm, PKF, advised on the takeover of Portsmouth in June by CSI and carried out due diligence before it bought the club. The firm was then appointed auditor to Portsmouth and submitted an invoice of £20,000 to the club for that work. But in the High Court a judge considered the issue and decided there was no conflict of interest.
‘HMRC approached me to be Portsmouth’s administrator,’ Mr Birch said. ‘We are satisfied there is no conflict and now want to do our best to sort out the problems at the club.’
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Comments
There are 203 comments to this article
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pompeyfanatic1
Wednesday, February 29, 2012 at 09:03 PMHey, I am new on this facebook thing. I am very concerned about the recent events revolving around our club. I was in the pub and have heard from some of the employees of the club that it may get liquidated next week because of TB. Apparently he is working hand in hand with the HMRC and that paying the PAYE and VAT for January and February was one of the main objectives for him and his team. HMRC ...don't want to be creditors in a second round CVA or liquidation - and these payments of our own money to them is going to result in our club being torn to shreads! We should say something before it is too late...otherwise our club will never see the end of the season...and if things are really that bad who knows if we will get through march! I am sure AA would not have allowed this to happen and would have found some sort of arrangement for funding! Ranting about the past is not going to get us anywhere...we need a solution asap!
stever2011
Thursday, February 23, 2012 at 12:28 PMBacks against the wall. Time for SOS. Time to come out fighting. 'Pack the park'. Spread the word if you care.
piers657
Thursday, February 23, 2012 at 11:06 AMI hate being right!
piers657
Wednesday, February 22, 2012 at 10:00 PMTide maybe turning. However, I feel a tsunami is on its way! Its Nemo time! What could possibly go wrong!
Pompey Andy
Wednesday, February 22, 2012 at 09:37 PMTalking of SG - I had a very interesting conversation with PS on the train back from London a little while ago. I asked him what happened at Fratton with SG's money and his response was "To be honest I never believed it was his money anyway". If this is the case then SG's claims to the land around the ground could be tenuous to say the least. The tide is finally turning in our favour PUP.
DanDog
Wednesday, February 22, 2012 at 08:45 PMpost 196, the £50m includes chanrais debt apparently.
DanDog
Wednesday, February 22, 2012 at 08:32 PMIF (and it seems like some speculation) - the debenture that Chanria claims is not as much as it seems the legal ramifications for the previous administrators, Chanrai, the club, the HMRC and other debtors would be massive. The legal fight itself would probably crush the club and any hope of finding a new owner. Neil Allen (the news) called it a House of Cards on Twitter....
piers657
Wednesday, February 22, 2012 at 08:25 PMOr wasn't the £17 million included in the £50 million. Tricky.
piers657
Wednesday, February 22, 2012 at 08:24 PMHas that reduced the debt to only £33 million. Should have said, petty cash.
cjinrak
Wednesday, February 22, 2012 at 07:16 PMpoaat 192 Why on earth should it be hot air? It is TB's professional duty to try and provide a future for PFC whilst securing the best possible deal for genuine creditors (not fraudulent ones). Proving the Chanbrai debt to be a fraud would tick all boxes. Suing Chanrai, Kushnir, Fuglers, Jacob, UHY and AA would recover even more money but maybe I dream too much ;o) I didn't include Vantis because they've just gone under (maybe they foresaw the skeletons coming out of the closet ;o)
wizard of oz
Wednesday, February 22, 2012 at 07:05 PMHas the BT report been made public? There is a lot rather to go on this story.
kski
Wednesday, February 22, 2012 at 05:56 PMposted at 107 4 hours ago ? Surley Tb has a legal obligation to query every charge? This soounds like a bit of hot air. If BC has secured primary creditor status via the administration and Convinced the creditors previously as such, and this has not been challenged by Baker Tilley the investigators, will he have time and budget to conduct a legal challenge. The BVI make Monaco look like Bournemouth, their selling point s secrecy and obscurity. Bc is prepared to spend £500k, imagine how much he would spend on counsel to defend his position. Money which is not available to PFC, and a risk which creditors may not be willing to countenance.
terraloon
Wednesday, February 22, 2012 at 05:30 PMSo lets get this right £17 million of secured debt is now not. I am not too sure that this alone is anything to celebrate, well too much This wont put monies back into the club it means that the terms of any CVA will surely have to be revised up . Dont forget TB has stated , as is correct, he is looking toward the best deal for creditors and whilst he of course will want to do the best he can for PFC his first priority is to those that are owed a chunk of money Not sure this will un ravel as easily as just that
Secured Creditor
Wednesday, February 22, 2012 at 05:27 PMhe just can't bring himself to leave, even though the sister has turned up
wizard of oz
Wednesday, February 22, 2012 at 05:23 PMFools we may be but clever enough to suss you out Amesbury Red , so what does that make you ?
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