Source: FOOTYMAD
Pompey Debts Rise To £138 Million
But a CVA is close to being agreed. Pompey's administrators have today announced that the club's debt is now £138 million, though Andrew Andronikou says that the actual debt figure is around £105 million.How he and the press have come to a difference of £23 million is beyond me and to be honest I don't know who to believe. We all know the press like to fabricate stories about us and that some of their "sources" are inaccuarate to say the least, but then they have been reporting a lot of news earliier in this season which has turned out to be true, despite early denials by the likes of Storrie and co.But how many times has "Admin Andy" stated that the debt is at so-and-so level only for it to rise and rise. It's not doing his credibility any good, especially as anything he has seemed "confident" of doing (like getting Pompey back into Europe for example) hasn't gone his way.However, it seems like Andronikou has managed to convince creditors to agree to a CVA, with even HMRC agreeing to accept what is likely to be 20 pence to the pound.This isn't official but it is being reported that HMRC are happy to accept a CVA on the condition that Portsmouth City Football Club Ltd is liquidated within 9 months and the debt is passed to a new "Portsmouth Football Club" company.All assets and league membership would be transferred to the new company and a "full investigation" would be conducted into the old company.I'm no expert in this area but my main worry is that this move could still incur a points deduction, the very thing that the administrators are trying to avoid by agreeing a CVA before the deadline.Southampton were deducted points for doing something similar so it wouldn't surprise me to see a points deduction on the horizon if this were to happen.As for the debt itself, with the agreements in place they would still stand at over £60 million as football creditors have to be paid in full as well as small businesses and charities.Will anyone want to buy a football club with virtually no assets of worth and £60 million worth of debt, with future parachute payments going straight towards paying that debt off? I don't think so.
