Hi guys, RLGB in peace, Trevor Birch will meet with creditors tomorrow to discuss the clubs debts, potential investments and the clubs future. The meeting will come the day before Trevor Birch has to go back to court (I think) to deliver his verdict on the situation and what the most appropriate course of action is. With four people being made redundant today and players still not having left despite being released, what are people's views on the clubs current situation? Obviously not good, but what are people predictions for the outcome over the next few days? Really feel for the fans! RLGB
The players aren't released until either a) their contracts run out or b) they agree a settlement to end their contracts - Football Creditors Rule means they are paid until 31 July, even when their contract ends (unless they sign for another club before that date). Trevor Birch has to meet with the creditors - to explain the current situation and to start talking about a CVA to enable things to move forward. An awfully high percentage of the debt is owed to 3 former owners - they are the biggest reason for making the club a poor investment for anyone else. According to the BBC - Of Pompey's £58m debt, £38m is owed for the purchase of the club from the previous administrators. A further £10.5m investment made by former owners Vladimir Antonov's Convers Sports Initiatives (CSI) remains outstanding. No wonder we are in the mire - how the hell did Chanrai's £17m become £38m????????
3rdeye, i am not an expert in pompey's financial woes, but my understanding is that the £38M is the total owed to ALL unsecured creditors from the previous CVA, i.e. taxman, etc. Chanrai's £17M is excluded as it is secured on the land, so was not in the £38M.
So far the information from the creditors meeting is: There is interest in the club but Birch is not, at the moment, convinced about any of it. Has yet to see proof of funds. There is a 50/50 percent chance of the club finding a buyer before next season. The club has enough money to make it to June with no further investment. Season ticket sales wont effect cash flow as the administration wont use it. If the club were liquidated Fratton Park would be sold off and the parachute payments would be invalided even if the club reformed. If the club were liquidated the Birch would expect the supporters trust to form a new one. Chainrai's representatives state that they will not allow the club to be liquidated. HMRC's proposal is to get a CVA, liquidate the old company - not the club, just the company - and investigate what happened. Chainrai's representatives vote against HMRC's proposals but the majority accept.
HMRC proposal rejected because of Chainrai and CSI's vote. As main creditors they carried enough weight to stop it. Chainrai's representatives say Portpin will pay small creditors if they come back in.
All I can say is that I'm relieved there isn't a player out there somewhere called Buttocks or Minge.............
I think this one revelation (but we already knew it) is interesting - what have Chanrai/CSI been hiding? They MUST be hiding something in the accounts - they can't not be!
We will. But it puts us in the position of Chanrai vs Liquidation. Unfortunately, Chanrai looks like he will be the only option. You can expect me at away games, but seriously debating how much money I want line his pocket with at FP - a sad state of affairs.
Always been a fan of Gash myself, Michael Gash at Cambridge United who is someone you should be looking at ps there was a Minge, he played for germany. Also reminds me of that photo of, was it Gary Neville? where the minge flag was held up behind him
