Tag Archives: premier

• Proposal offering 20p in the pound on debts approved • HMRC has 28 days to appeal Portsmouth appeared to move a significant step closer to achieving long-awaited financial stability today when the company voluntary arrangement to take the club out of administration was voted through by its creditors. The decision also clears the way for David Lampitt, the Portsmouth chief executive, to appoint a new manager, with whom he is “currently negotiating a contract”. The only obstacle to the CVA being officially approved is the possibility of Her Majesty’s Revenue and Customs raising a legal challenge. HMRC voted against Portsmouth’s proposal of 20p in the pound over the next five years, which was approved by 81.3% of the creditors, and has 28 days to raise an objection. The Revenue was allowed voting rights of only £24m by the administrators rather than its claim of £37m, which would have given it more than the 25% required to block the CVA. HMRC voted against because it is challenging the Premier League and Football League rule which states that football creditors must have priority and their debts paid off in full when a club enters administration. A statement released by the Revenue said: “HMRC notes that the result of today’s vote was to accept the CVA proposals. HMRC stands by the full amount of its claim. We will now carefully consider our position following the decision to reduce the amount of our claim for voting purposes. “HMRC believes the so‑called football creditors rule is unfair, unlawful and unacceptable. It cannot be right for millions of pounds worth of assets and income of Portsmouth FC to be earmarked for payment of football debts in full while other creditors – including the public purse – have been offered a mere 20p in the pound over five years.” Whether HMRC mounts a legal challenge remains to be seen, though it is thought to be unlikely. What the CVA’s acceptance means is that control of Portsmouth’s day-to-day operations will be now completely ceded to Lampitt, although until a new buyer is found for the club he will still report to the administrators. Andrew Andronikou, the chief administrator, told the Guardian: “We are now in a transitional period where we hand over the club’s daily business more fully to David Lampitt.” The chief executive praised the CVA’s authorisation and told Portsmouth’s website: “This is a hugely significant day – I’m very pleased the vote has gone through. The deal reached between the administrators and the creditors provides us with the first step towards the rebuilding of the club. One of my tasks is to bring stability to the club so that it has a long-term future. This should make it a more attractive proposition for new investment. I believe this has to the best way to bring long-term success.” Andronikou confirmed Lampitt is close to appointing Avram Grant’s successor. “He is past interviewing candidates and is negotiating a contract with the new manager.” Steve Coterill, the former Notts County manager, is thought to be in line to take over but Andronikou refused to comment. Portsmouth Jamie Jackson guardian.co.uk

Here is the original post:
Portsmouth creditors accept deal and give the club a brighter future