Pompey poised to exit administration

10 October 2010 13:33
Portsmouth are confident they will come out of administration this week after offering financial guarantees to their creditors.[LNB] Prospective owner Balram Chainrai has agreed to put up £7million to cover any shortfall in the payments Pompey must meet to avoid a further points reduction.[LNB]The south-coast club have been told they must pay £3.5m to creditors every year for the next four years.[LNB]Chainrai is happy to cover that commitment, meaning there is now light at the end of the tunnel at Fratton Park.[LNB]The Hong Kong-based businessman missed a first deadline to complete the deal but Pompey officials are confident they can persuade the Football League board to approve his return to power on Thursday.[LNB]Should Portsmouth's efforts be successful, they will exit administration and the transfer embargo which continues to hang over the club will be lifted.[LNB]"We've submitted everything we need to and, hopefully, we'll get the decision we need," said Pompey chief executive David Lampitt.[LNB]Meanwhile, former owner Milan Mandaric, who is now chairman at Leicester, has revealed that he would never have sold the club had he known what was to follow.[LNB]Mandaric sold Pompey to Alexandre Gaydamak in 2006 and admits to being saddened by the troubles they have endured since then.[LNB]"Naturally I have a great affinity for the club and their supporters but this is a pale shadow of the club that I left behind," he said in the Sunday Mirror.[LNB]"If I knew what would eventually happen to Portsmouth I would never have considered the sale of the club.[LNB]"The situation they find themselves in now is nothing short of horrifying.[LNB]"You would have to commit financial suicide to take this club on in its current state. I'm not sure anyone appreciates the level of incompetence that has gone on at the club.[LNB]"You would have to find nearly £50m to pay off the two main creditors at the club and cover the CVA payments over the next five years.[LNB]"I'm incredibly sentimental when it comes to Portsmouth but I'm no fool either.[LNB]"I would prefer to stop short of saying certain people have raped and pillaged the club but that is what it amounts to.[LNB]"When I took the decision to leave I did so believing the future of the club was in very good hands. But once Alexandra Gaydamak decided to sell the club the mounting debts got out of complete control."

Source: Team_Talk