Pompey apply for administration
Portsmouth FC crest
Pompey this afternoon formally applied to go into administration.
The club made the application to the High Court in light of its continuing financial crisis.
It is believed that the process will be formalised by the court on Friday, after the home match against Ipswich Town tomorrow night.
Creditors include electricity suppliers have threatened to cut the club off, Peter Kubik, of UHY Hacker Young, administrators for Pompey’s parent company CSI, said in an interview with the financial news service Bloomberg.
‘During the last week it’s been very difficult to trade,’ said Mr Kubik. ‘Administration would allow us to get the bank account unfrozen and pay the electricity board, who’ve constantly been threatening to cut us off.’
A move into administration for the second time in two years would almost certainly trigger a 10-point penalty, plunging the team to the edge of the Championship relegation zone.
Sources at Fratton Park say that the match there tomorrow is not in danger as a result of the latest developments and that suppliers have agreed to provide their services as usual.
Stewards this afternoon received a text message from the club saying: ‘Tomorrow’s match against Ipswich will go ahead without fail. Your attendance is essential to make this happen.’
The decision to place Pompey into administration is likely to lie with the club’s debenture holder - Portpin, which is the firm of former owner Balram Chainrai.
Financial experts say Mr Chainrai would appoint an administrator by filing a notice, probably at the High Court.
Placing the club into administration would stop HMRC’s winding-up petition over £800,000 unpaid tax, although the club now owes around £2m to the revenue.
Administration would not automatically unfreeze the club’s bank account, but money in them would be available to the administrator as an ‘asset’, which could be used to pay wages.
Pompey will be able to continue to play football and trade as long as the administrator has the funds available to pay its ongoing costs.
Administration would stop the threat of liquidation but the administrator has to find a buyer within a year.
If the company can no longer afford to trade, or a sale is unlikely to cover running costs, it can be liquidated.
There are several ways to exit administration, two of them being a Company Voluntary Agreement (CVA) – often following a sale to a new owner – or through liquidation.
Pompey said in a statement this afternoon: ‘Portsmouth Football Club today made an application to the High Court to go into administration.
‘The club will not enter administration until the court endorses the application and appoints an administrator.
‘The High Court hearing is due to take place on Friday, February 17.’
Chief executive David Lampitt has confirmed the club has made an application for UHY Hacker Young to be administrators of Pompey.
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Comments
There are 181 comments to this article
Page 1 of 13
pompeyred
Friday, February 17, 2012 at 08:44 AM#175 - blushirt - leicester went into admin a few years back now when playing in the championship... they were able to restructure the debt, sell the club to the same owners and still obtain promotion... all in the same season... loac business still got seen off, however as usual the players still got paid , the 10 point penalty was seen as way of punishing the clubs football results and an attempt to avaid the same situation happening again..
Devon Blue
Tuesday, February 14, 2012 at 11:19 AMMy previous comment seems to have been removed. I said that I am travelling to the match today from Devon to support the team. However I raised the option that we might actually withdraw our financial support fro the current regime with its hangers on by ceasing to attend matches and pull the plug on the hangers on and set up anew club that we can be proud of as our own? If we do not do this there is going to be a fire sale at the end of the season and Appy will leave, What is the good of this? THIS IS ONLY AN IDEA. WHAT DO YOU other SUPPORTERS THINK ABOUT THIS? This comment is innocuous and should not be removed!!!
Devon Blue
Tuesday, February 14, 2012 at 11:04 AMI should clarify my recent post , I should make it clear that when I referred to the " current "corrupt regime" I was referring to the three crooks who are actually controlling our club not to any one else! Also a minor correction. The word new half way down my post should have been followed by the word "club"!!!
russian chris
Tuesday, February 14, 2012 at 09:13 AMTell me to shuttup or whatever,but whats the point in bickering with each other? If you go to watch Pompey,then good. If you dont go for some reason,thats up to you. I live in Russia so i cant go. But if i was in England,i would be there 100% .But thats me. So,if you go,dont have a go at those who dont now. its not worth it.And those who dont go,dont have a go back, because it just aint going anywhere. Now is the time to join together in supporting our club. Whichever way it goes. Thankyou.
caseyfratton
Tuesday, February 14, 2012 at 09:09 AMBlue Shirt. exactly! can you use that statement in court?
chunky39 was 37
Tuesday, February 14, 2012 at 09:06 AMBlueshirt - I believe it is a penalty to re-level the playing field as clubs purchasing and paying players beyond their means have an unfair advantage which the points deduction resolves. I totally agree that the decision makers should be penalised but the laws in this country seem to be there to protect them. In my opinion of course...
blueshirt
Tuesday, February 14, 2012 at 07:43 AMI ask again just what the imposition of a 10point deduction actually achieves in the case of a club going into administration? What is it meant to do, is it a punishment? Is it intended to deter other clubs from going into administration. if so its a failure, seeing as how approx half of all the clubs in the league have at some time been in administration. if it is meant to punish the club entering administration, I ask, who does it punish?? Does it punish Antonov, whose business collapse caused the problem, and who is in fact no longer at the club? No it doesnt. Does it punish Chainrai, who nows holds a debenture on the club's debts? Er, no it doesn't. Does it punish whoever at the club took the decision NOT to pay the club's taxes? Er, no it doesnt. Ok then, does it punish the football league, whose pitifully inadequate and poorly applied FaPPT failed to uncover the dubiousness of the potential buyers, and allowed clearly unfit people to get control of the club, thus precipitating this current mess? Er, no it doesnt....... well then, who DOES it punish? answer, the fans, the staff, the players and the employees of PFC who merely want to earn a living, play football, and support their local team.THAT'S who suffer the punishment, and it is not bl***y fair, because those people are not the ones who got us into this mess. I would like the football League to justify to me how they can impose a points deduction on the club for going into administration, when it is the Football league's failure to carry out the FAPPT in a properly stringent manner, especially after our previous problems, which has lead to us entering administration again.... will the FL suffer any punishment for allowing such a mess to occur..NO. Will the FL accept its culpability in all this and show us leniency.NO. Will the FL actually take steps to find and punish those who actually ARE at fault....NO. As usual, they will take the easy, soft option and hit the little guys who can't hit back, and allow the big guys who caused all this mess to go free and unpunished. THe FA and the FL need to get their own houses in order and quickly, because they are presiding over a shambles that will kill our game if they arent careful............
maltesepomp
Tuesday, February 14, 2012 at 04:45 AMThis is RAPE of our Football club . Just how much more do the sufferring fans can take of this complete mess is beyond me . I wish I wake up one morning and simply support a club that is not in the press on a daily basis for YEARS on end for the same reasons . And they are , ADSMINISTRATION , 10 POINTS DEDUCTION , CHANRAI , ANDRONIKOU , GAYDAMAK AND STORRIE . wWhat a sour taste .
alfonso
Tuesday, February 14, 2012 at 02:40 AMLl 125 Many thanks for your explanation, it is much appreciated.
Pompey overspender
Tuesday, February 14, 2012 at 12:46 AMForgive me if I'm wrong, but I thought both administrations were caused by managers wanting players who cost a big amount of wages (and transfer fees) and these purchases being signed off by the CEO at the time (Lampitt and Storrie) and their accountants and the owners at the time (CSI & Gaydamac), and then one day all is revealed, there wasn't the money to pay their wages! Last season Pompey ran a good wages budget and even made a profit. This year Pompey have overspent big time. The cause of this is buying players Pompey can't afford. The way to get out of administration is to get rid of the players Pompey can't afford and play with players on much lower wages, so that when there is any surplus it can pay back the creditors. Very simple isn't it? So wouldn't it be a good idea to constructively ask the overpaid players to move on rather than focus entirely on the creditorsowners?
The Moderator
Tuesday, February 14, 2012 at 12:41 AMI take you wont be coming then ? I guess you are one of the many who only go and watch Pompey when they are playing at Wembley and claim to be a supporter, dont make me laugh.
Horshamblue
Monday, February 13, 2012 at 11:49 PM@ 168 Joebecca.. Quite agree. But not news...Stop going to the matches!!!!. cut his lifeblood off. Evil persons
LI 125
Monday, February 13, 2012 at 11:47 PMAlphonso @140. If you Google the football pyramid in England, it will take you to a wikipedia link. The pyramid shows all the levels of football by way of the leagues that make up the Pyramid. To play in the lower tier of the Wessex League you have to have a ground that meets a criteria - a stand, floodlights etc. To progress upwards from the Wessex League a club must get promoted in the same way as a Football League club does . Each promotion brings in more stringent ground regulations. In summary if Pompey were allowed into The Wessex League , they would need nine promotions to get them into The Football League division we are in at the moment.
joebecca
Monday, February 13, 2012 at 11:44 PMjust remember when you see andronikou's mug in the paper he just looking to get chanra'is money back, plain and simple. a knight in shining armour chanrai is not
Horshamblue
Monday, February 13, 2012 at 11:28 PMStop going to the matches!!!!. at least that will stop BC getting any more money out of the club. Limpdrip should feel very ashamed, BC is a business man so does not give a to55, AA is just a slug, Appy and the others are just great!!!!
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