Source: Telegraph
Portsmouth win seven-day extension in High Court
HMRC told the court that Portsmouth owe £11.5 million, and declared the club "insolvent." But Portsmouth claimed two firm offers of fresh investment are on the table, and successfully persuaded the court that they should be given more time. [LNB]However, the club's request for a 28-day adjournment was dismissed. Portsmouth's lawyers will now return to the High Court on Friday, Feb 19. Portsmouth have until then to draw up a statement of their financial affairs. [LNB] Related ArticlesHow football could solve problems like PortsmouthPortsmouth crisis: timelinePortsmouth set for fifth owner of the seasonGrant: I cannot fight against whole worldPortsmouth 1 Sunderland 1Portsmouth seek High Court adjournmentMrs Registrar Derrett said she feared the club would continue to trade and build up more debts that would not be paid. [LNB]"I am very concerned about the financial status of this company," she said. "It seems to me there's a very real risk that this company is undoubtedly trading while it is insolvent. [LNB]"I'm obviously conscious that, by making a winding-up order, it would have very severe consequences not only for the company as a business but for the supporters themselves, but that's not a consideration that I strictly take into account."[LNB]Portsmouth face a VAT bill of £7.4million which it is disputing with HMRC. They also owe £4.7million in unpaid PAYE and National Insurance which were not part of today's petition. [LNB]Representing HMRC, Gregory Mitchell QC said: "It's quite clear beyond any doubt at all that this company is insolvent. 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 Chainrai would run the company until it was financially stable and then sell it on to someone who wanted to "operate the business as a football club". 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 to the suppliers but to the employees, 600 staff, suppliers, people who have paid in advance for their season tickets would lose their money." [LNB]On Tuesday night chief executive Peter Storrie claimed he was in touch with interested parties, and said: 'We will be running the business and the priority will be to deal with the winding up order from HMRC and to find a long-term owner for this great club.' [LNB]Portsmouth have debts of £60 million and are bottom of the Premier League. Their financial woes have meant their staff have been paid late on four occasions this season. [LNB]Earlier today, Cardiff and Southend avoided being put into administration after they also secured adjournments. [LNB]Cardiff, who lost to Portsmouth in the 2008 FA Cup final, were given 28 days to make a payment of £1.5 million to HRMC, which had initiated proceedings to have the club declared bankrupt over unpaid tax bills £2.6 million pounds. [LNB]Southend are being pursued by HMRC for £200,000 pounds, which the club argues it has already paid. [LNB]
