Source: Team_Talk
HMRC appeal against Pompey CVA
HMRC have lodged papers in the High Court to appeal the CVA with Portsmouth, which could prevent the Championship club exiting administration.[LNB] The decision to appeal was taken well in advance of the midnight deadline on Thursday and under Football League rules the club will now stay in administration and under a transfer embargo until the appeal, still to be scheduled, is heard.[LNB]A spokesman said: "HMRC can confirm that it has made an application to the High Court that the decision of creditors of Portsmouth City Football Club Ltd (In Administration taken at a meeting on 17 June 2010 approving a Company Voluntary Arrangement in a Proposal dated 28 May 2010 should be revoked or suspended under s. 6 (1) (a) and/or (b) of the Insolvency Act 1986 on the grounds that: (a) The interests of HMRC have been or will be unfairly prejudiced by the taking of that decision; and (b) There were material irregularities in the way in which the votes of creditors were counted at that meeting.[LNB]"HMRC can further confirm that it has also appealed to the court under Rule 1.17 of the Insolvency Rules against the Chairman's decision to refuse to allow HMRC to vote in accordance with claims totalling £13,293,651.72 submitted at the meeting.[LNB]"HMRC feel we have been or will be unfairly prejudiced by the decision to accept the CVA, because we believe there were material irregularities in the way in which the votes of creditors were counted at the creditor meeting and because, to our knowledge, the full amount of our claim should have been admitted for voting purposes.[LNB]"We are acting in the interests of all those creditors who are not in the football industry. We don't think it's right that they are offered 20p in the pound against full repayment all others. Also we cannot agree with the striking out of £13 million of debt which seriously undermined our ability to challenge the CVA."[LNB]The move comes as no surprise to Portsmouth, having been anticipated on Wednesday by the club's administrator Andrew Andronikou, who warned the case may not be heard until October or November.[LNB]That would mean a lengthy transfer embargo being placed on the club, but Andronikou noted the club would be able to sign players while they had less than 20 in their squad.[LNB]Portsmouth currently have 18 players listed in their first-team squad.
