Portsmouth talks continue as administration looms

22 February 2010 15:03
Chainrai's spokesman said on Monday night that the owner and business partner, Levi Kushnir, had spent the day in talks with three interested parties, but no deal had been agreed. He denied speculation on Portsmouth websites that a deal had been concluded. [LNB]The Premier League is watching developments closely but on Monday night it had not been notified of any imminent change of ownership. [LNB]Questor: Hochschild will shine from silver exposureWith the club facing a winding-up order from Her Majesty's Revenue & Customs next Monday over £12 million of unpaid tax and total debts exceeding £70 million, Chainrai effectively has until the end of this week to find an alternative to administration. [LNB]With no deal yet confirmed administration remains a very real possibility for the club, and Telegraph Sport understands that Chainrai has engaged an insolvency expert from a large accountancy practice to handle the administration should he have no other option come the end of the week. [LNB]There were suggestions on Monday that administration could come as early as Tuesday, but Chainrai appears willing to continue talking. [LNB]Chainrai and Kushnir, who took control after the club defaulted on repayments of a £17 million loan made to previous owner Ali Al Faraj, arrived in London last week to settle the club's future. [LNB]A South African-based consortium is understood to be among the groups interested in buying the club. [LNB]Chief executive Peter Storrie said on Sunday that they were hoping to provide proof of funds via their banks on Monday. It remains unclear whether they have done so. [LNB]The position is further complicated by the role of Sulaiman Al-Fahim, the former owner who controls 10 per cent of the shares. Yesterday Al-Fahim said he was resigning his role as non-executive chairman and handing his shares to the Portsmouth supporters trust. [LNB]It remains unclear whether the trust will accept them until the legal implications of taking on the stake are made clear. [LNB]It is unclear what conditions Al-Fahim secured as part of the stake, and whether they would transfer to the trust. [LNB]Portsmouth's position is dire. To satisfy HMRC any new investor will have to demonstrate that they have the capacity to service debts exceeding £70 million and provide working capital to meet monthly running costs of around £5 million a month. [LNB]The players wages, which total £3 million including PAYE, are due at the end of this week. [LNB]Should the club voluntarily file for administration HMRC and former owner Sacha Gaydamak, who claims to be owed £30.5 million, are likely to have to settle for a fraction of their outstanding debts. [LNB]Chainrai could be in a stronger position as he controls Fratton Park, and is proposing to lease it to the club for around £1 million a year until his debt is repaid. That would amount to half of the club's television income in the Championship. [LNB]A source close to Chainrai said that he is determined to ensure that the club survives even if it means administration. [LNB]'Administration would mean relegation but it would give the owner a chance to clean up the finances and start again without the threat of going out of business altogether.' [LNB]

Source: Telegraph