Source: Telegraph
Portsmouth crisis eased as Balram Chainrai drops claim for immediate payment
Chainrai took control of Portsmouth in February after the club defaulted on a scheduled repayment on a £17 million loan from Portpin Limited, a company registered in the British Virgin Islands and controlled by Chainrai and business partner Levi Kushnir. [LNB]The league had indicated last week it was willing to advance TV revenue and even parachute payments that were due to Portsmouth if the money was used to pay off football creditors and keep the club afloat until the end of the season. [LNB] Related ArticlesPortsmouth fined by Premier LeaguePortsmouth 3 Hull 2Brown: Pompey must fight until endStorrie: the real storyPortsmouth v Hull City: match previewSport on televisionIt followed concern that any payments would simply go direct to Portpin. Chainrai, though, is prepared to drop his claim to ensure Portsmouth get the money advanced and has also pledged to invest up to £15 million to keep the club running between now and the end of the season. [LNB]According to a report prepared by insolvency specialist Vantis, Portsmouth needed £7 million to meet the projected shortfall in costs by the end of this month and a total of £14 million by the end of the season. [LNB]With a squad valuation of £21 million, it was said that Portsmouth's liabilities exceeded their assets by £65 million. [LNB]Chainrai has also distanced himself from recent reports that he might be joined by a group of Israeli backers to buy the club out of administration as a means of ensuring their debts are paid. [LNB]'Mr Chainrai has made it clear he does not want to be the full-time owner of Portsmouth FC, but will continue to run the club until a new owner is found, he is hoping that a purchaser is found sooner rather than later,' a spokesman said. [LNB]Portsmouth will now resume talks with the Premier League about receiving an advance of the broadcast payments, although it is almost certain that around £750,000 will be subtracted as a fine following rule breaches over the past year. Those breaches relate to the late payments of transfer fees to other clubs and wages to players and club staff. [LNB]
