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Pannu: Charges affecting investment
Published : 27 Jul 2011 09:30:10
Chairman Peter Pannu has revealed criminal charges brought against Birmingham owner Carson Yeung are hampering efforts to acquire new investment in the club.
City's parent company, Birmingham International Holdings Limited (BIHL), have been unable to trade on the Hong Kong stock exchange since Yeung's arrest last month. Yeung, 61, is due to appear in court in August to face charges on five counts of money laundering, covering a six-year period from 2001.
Yeung, City's largest shareholder with a 26.3% stake, has had his assets frozen and Pannu concedes the current situation has the club's bankers "concerned". He told the Birmingham Mail: "Carson has been trying hard to find new investors but the money laundering charges understandably meant that the progress has been slow."
He added: "I understand there is one interested party and they are working on it and BIHL's board are now trying to resume trading of stock.
"Hopefully the resumption of trading in Hong Kong could lead to the raising of some capital to appease HSBC, our bankers.
"They are speaking to Pauline Wong, as the group's financial controller, and seeking answers from her on matters of concern."
Pannu has warned some "unpopular decisions" may have to be made when he returns to St Andrew's from the Far East next week.
"Upon my return, I may have to make some unpopular decisions and I hope the fans will understand that I effectively don't have a choice there," he said.
"The club may need to do what is right and buy time until Carson's assets are dislodged from the clutches of the courts in Hong Kong."
Yeung is next due to appear in court in Hong Kong on August 11 after being bailed.