Source: Telegraph
Portsmouth seek stay of execution against winding-up order
Club chief executive Peter Storrie and lawyers for new owner Balram Chainrai spent Monday in talks with HMRC in an attempt to avoid the hearing.[LNB]Significantly Chainrai is ready to offer HMRC a financial settlement rather than appealing for more time to contest the winding-up order.[LNB] Related ArticlesPortsmouth set for fifth owner of the seasonTeam-mates salute Ferdinand captaincyManchester United 5 Portsmouth 0Lens want fee from PortsmouthChainrai has "zero interest" in owning Portsmouth full-timeSport on televisionA host of other companies that joined the winding-up order have already been paid off by the club, simplifying the process. It is not clear whether Chainrai has injected fresh funds or the proceeds from the transfer-window sales of Younis Kaboul and Begovic have been diverted.[LNB]HMRC is threatening to have the club forced out of business to recover up to £7 million in unpaid tax, VAT and PAYE, and, if successful, would make Portsmouth the first Premier League club to go out of business. Representatives of former owner Ali Al Faraj lost an appeal against the winding-up order last month.[LNB]Chainrai took charge of the club last week, becoming the fourth owner of the season after Faraj defaulted on repayments on a £17 million loan that kept the club in business last autumn.[LNB]Chainrai has said he is not interested in owning the club long term and instead will hold the shares in trust until new ownership can be found. It is thought he may appoint his solicitor, Ashok Patel of London firm Balsara, to be a trustee of the shares in the club and to the club board.[LNB]Club sources have indicated that there are at least two interested parties, and there is growing confidence that one may be in a position to begin conducting due diligence.[LNB]Portsmouth remain in a grave position however, with outstanding debts of close to £60 million, including £23 million due to former owner Sacha Gaydamak.[LNB]The Premier League is concerned at the situation and will seek a meeting with Chainrai when he is next in the UK. There are suggestions that he will return from his home in Hong Kong this week.[LNB]The League will seek assurances about the ultimate ownership of the club and Chainrai will have to pass the fit-and-proper persons test. [LNB]
