Source: Team_Talk
Pompey delay debt announcement
Portsmouth's debt is thought to be far higher than previously reported - but a delay in announcing the accounts means confirmation must wait.[LNB] The figures are expected to reveal that the south coast club owe as much as £119m and were due to be made public on Tuesday after administrator Andrew Andronikou worked through the night to finalise them.[LNB]But the stock market's end-of-day announcement arrived with no news forthcoming from Fratton Park.[LNB]It has been reported the results will show that as well as Pompey owing £105m to numerous creditors, both secured and unsecured including some outstanding payments to agents, there is also some £14m still due on transfers.[LNB]Andronikou, however, maintains the seemingly perilous state of the finances will not come as a shock to those looking to take over at Fratton Park.[LNB]"I do not believe that the figures will come as a surprise to anyone who has been interested in buying the club, when they do due diligence it is there for them to see," Andronikou told ESPN Soccernet.[LNB]"So, for that reason, it is not unexpected, although of course the figures are vastly different from what has been reported.[LNB]"The size of the debt involved won't scare off potential buyers, far from it.[LNB]"We now have a business plan in place that is a projected target over the next three to five years to pay back the creditors, albeit with Xp in the pound. The creditors will get a percentage of their debts back over a number of years, rather than all in one go.[LNB]"You have also got to remember that £40m of the debt involves the old shareholders, the previous owners. The shareholders are owed that amount of money because they put loans into the club, not their own money, it was all built on their loans."[LNB]The accounts have been drawn up in preparation of a meeting with the club's creditors, which is set for May 6 to discuss the proposed Creditors' Voluntary Arrangement (CVA), which has to be in place for the club to exit administration - and so have a chance to apply for the necessary UEFA license to allow European football next season for the FA Cup finalists.[LNB]Andronikou continues his search for a new owner, with property tycoon Rob Lloyd fronting a takeover bid for an anonymous investor.[LNB]"We are no nearer to a buyer than we have been for the past two months," Andronikou said.[LNB]"Will one be in place for the cup final? Who knows?[LNB]"Rob Lloyd seems keen to make a formal offer, but he has yet to do so, and there is one major sporting franchise group who approached me again the day after we won the semi-final. There are a few fishing around."
