Chanrai's offer to purchase PFC - again

Portpin (Chanrai) has sent out his offer to the creditors - so far no indication of the Trust plan, it would have to go to all the "pledgees" first so it does look as though they aren't going to be in a position to make their offer in time.


http://www.portsmouthfc.co.uk/LatestNews/news/CVA-Proposals-Sent-To-Creditors-3460.aspx

 

Where have I heard that before?

 

Whatever any-one's views on the 'reluctant owner' it looks like this is the only way the club is going to be able to continue as its current entity, as opposed to liquidating and starting in the non-league Pyramid, a la FC Halifax, Chester, Scarborough Athletic etc.
With all due respect to those three, they simply don't have the core fan base support that Portsmouth FC is fortunate to have. For this reason I think it is common sense that the club should be able to move forward from its current position rather than start again.
There are sure to be mixed feeling amongst the Pompey fans but, for the time being, my hat is in the 'better the devil you know' ring.

 

No surprises there then - Hobson's choice really. I do not have such disparaging thoughts towards the Trust as some but they have been behind the curve right through all of this. I do believe that they have the potential to eventually take the reins but they are not ready to run the club yet and, however reluctant both he and we are, Chanrai is the only realistic option for our immediate survival. Yes, he wants his money back, but he would want it back whoever was buying the club.

However, at 2p in the Pound (2%) then that means that the reported £58M becomes £1.16M. With 16M of parachute payments to come then he will have just about have cleared his debt in 2 years and could get the balance by selling a debt free club. An alternative scenario is that he uses some of the parachute payments to reinvest in the club's infrastructure on the basis that he can recover this investment by having a more realisable asset that he can sell for an inflated price. Hmm, I think I know which scenario is the most likely.

Of course, the success, or otherwise, of either of these scenarios is the assumtion that the creditors vote in favour of the CVA. Now, if I was a creditor owed, say, £5,000, I would only get £100 back while he gets all of his. Sorry guys, but I would say 'sod off' to such a paltry deal. However, I assume the voting is weighted according to the amount of debt, in which case the biggest two creditors are CSI and the old CVA, the voting rights of which I believe both belong to a certain Mr Andronikou. If I am wrong, then I cannot see the CVA being accepted.

In reality, it has always come down to Portpin or liquidation.

If you want to watch football at Fratton Park next season you had better hope that Mr Chanrai and Portpin have got their sums right!