Source: Daily_Mail
Pompey granted seven-day reprieve in desperate bid to avoid going bust
Portsmouth have been handed a stay of execution after being granted an extra week to fight for their survival.[LNB]The club faced proceedings over a multimillion-pound unpaid tax bill. In a dramatic day at the High Court, Pompey were told they have seven days to provide their Statement of Affairs - a rundown of their financial standing. They must file this by 4pm on February 17.[LNB] Judgement day: Portsmouth's players have been under pressure[LNB]Portsmouth statementPortsmouth Football Club today welcomed the decision by the High Court to allow the club time to demonstrate its plans to restructure and stabilise thebusiness under new owner Balram Chainrai. The club was given seven days to produce a statement of affairs for the court and HMRC and this will be produced in conjunction with Vantis plc, a firm of accountancy and insolvency practitioners.[LNB]Following this submission a hearing will be convened on the first availabledate after Friday, February 19. In January, the club was granted leave to appeal the judge's decision on the application to strike out the HMRC petition. The total outstanding on the petition in December was £11.5m. This includes £5.8m of disputed VAT, £1.1m of undisputed VAT and £4.6m due on PAYE and NIC.[LNB]In relation to the PAYE and NIC, £4.5m has subsequently been paid, leaving £7m outstanding. However, the total amount of VAT included which is subject to a dispute is £7.4m (of which £5.8m has been petitioned for). Therefore we contest that there is no payment due.[LNB]There was a further submission issued late yesterday in relation to £4.7m,which included £3.8m PAYE. The club is making arrangements to pay this to bringthe club up to date with PAYE payments.[LNB]The club will show that the business will be sustainable as a going concern andhow it will deal with outstanding creditors as a result of the recent takeover.[LNB]Balram Chainrai's trustees - chief executive Peter Storrie and Ashok Patel of Balsara & Co - are in advanced discussions with more than one interested party who have the ability to further stabilise and grow the business.[LNB]The club would like to thank the staff, players and fans for their continuedsupport through this difficult period.[LNB]HM Revenue & Customs then have two days to respond, while a return to the High Court will happen sometime after February 19.[LNB]Pompey insisted they havetwo offers on the table from potential new owners that will pay off thedebts.[LNB]Court registrar Christine Derrett said she feared the company wouldcontinue to trade and build up more debts that would not be paid.[LNB]She said: 'I am very concerned about the financial status of thiscompany. It seems to me there's a very real risk that this company isundoubtedly trading while it is insolvent.[LNB]'I'm obviously conscious that, by making a winding-up order, itwould have very severe consequences not only for the company as abusiness but for the supporters themselves, but that's not aconsideration that I strictly take into account.'[LNB]Gregory Mitchell QC, representing HMRC, said: 'It's quite clear, beyond any doubt at all, that this company is insolvent.[LNB]'They have failed to provide any evidence at all as to their solvency. There are many debts and they are unpaid.'[LNB]Representing the club, Nigel Hood said new owner Balram Chainraiwould run the company until it was financially stable and then sell iton to someone who wanted to 'operate the business as a football club'.[LNB]He said any move to force the club to wind up would have 'very serious consequences'.[LNB]Mr Hood said: 'There would be irreparable harm caused not only tothe suppliers but to the employees, 600 staff, suppliers, people whohave paid in advance for their season tickets would lose their money.'[LNB]The case will be heard by a judge on a date after February 19 which has yet to be fixed.[LNB] Portsmouth were recently taken over by Chainrai but the Hong Kong businessman is determined to sell the clubonce more.[LNB]'I already have more than one interested party and am hopeful that wecan finally find owners who have the best interests of everyone at theclub at heart in order to move us forward,' wrote chief executive PeterStorrie in the programme notes for last night's 1-1 draw withSunderland.[LNB][LNB] Big day: Portsmouth consultant Daniel Azougy arrives at the High Court[LNB]Meanwhile, former Tottenham chairman Alan Sugar has criticised the 'irresponsible manner' in which he thinks most football clubs' finances are run. [LNB]Sugar believes Portsmouth will go on even in that event, but feels their problems are symptomatic of a wider problem in football where clubs spend way beyond their means to achieve success. [LNB]He told BBC Radio Five Live: 'The problem is the irresponsible manner in which all clubs are run - not just Portsmouth.[LNB] Support: Portsmouth fan David Maples outside the High Court[LNB]'They are spending far too much money, 90 per cent of their income is spent on players and players' salaries, and it's something that should have been nipped in the bud years ago.' [LNB]Sugar sees football's business model as a flawed and 'vulnerable' one which is too heavily dependent on the well-being of a small number of highly-paid individuals.[LNB] 'Cristiano Ronaldo was sold . God forbid he got run over by the No 36 bus in Madrid - he'd be worth nothing,' he added. 'That's how vulnerable football is.'[LNB] Portsmouth 1 Sunderland 1: Angry Avram makes an enemy of FriendCardiff reprieve as High Court adjourns winding-up order over £2.7m tax billSouthend face High Court wait after winding-up order is adjourned againPompey look to settle £7.5m debt in order to save club from administrationPortsmouth attempt to delay winding up order as judgement day approachesPORTSMOUTH FC
