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28 May 2010
The latest Portsmouth company voluntary arrangement (CVA) proposal, released today, shows HMRC increased its tax claim by approximately £18m for unpaid taxes on image rights.
Details released in the latest proposals to creditors claim one of the main reasons the creditors' debt increased significantly from previous estimates was due to HMRC increasing its claim from £17.1m to over £35.3m.
The outstanding debt to creditors increased to around £105m, from approximately £93m.
The increased claim from HMRC is primarily due to "unpaid taxes of the image rights of certain players", according to the CVA document.
Under the proposals the administrators expect the club to pay back at least £16.5m to unsecured creditors over the lifetime of the CVA. If the club is able to re-enter the Premier League it is expected the return to creditors would increase.
Other details include the administrators hoping to reduce player's annual wages from approximately £42m to £13.6m for the next season. They hope to reduce this further for the following season from between £10m - £8m if the club does not re-enter the Premier League.
Unsecured creditors are expected to receive approximately 20p in the pound over the next five years.
A creditors meeting to vote on the CVA is to take place on 17 June.
Andrew Andronikou, Peter Kubik and Michael Kiely, from UHY Hacker Young, were appointed joint administrators on 26 February 2010.
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