HMRC calls for investigation into Portsmouth administrator

Andrew Andronikou the administrator of premier league club Portsmouth has been challenged over his appointment and decisions.

The administrator from UHY Hacker Young will be back in the High Court in two weeks to face a challenge from the HMRC over the decision to place the club in a voluntary administration and questions over his appointment.

Portsmouth entered into a voluntary administration last Friday just three days before it was due to appear in the High Court following a winding up petition from HMRC.

Justice Norris, residing, ruled the "shadow over the appointment should be removed" and gave the club two weeks to investigate the appointment of Andronikou and the clubs decision to enter voluntary administration the BBC reported.

Gregory Mitchell QC, representing HMRC asked the court: "Have these administrators been validly appointed?"

The disputes centre around whether Andronikou had links with the owner Balram Chainrai prior to his appointment, compromising his independence.

Simon Barker QC, representing Portsmouth, said: "There is no reason to impugn the conduct of these administrators at all. There is no reason the court should have any doubts about their appointment and independence."

HMRC are not happy with the decision of Andronikou to place the club in voluntary administration. In its petition to hold an investigation into the decision HMRC included details compiled by Vantis which showed the club needed £7m by the end of the month and a total of £14m by the end of the season.

It is estimated that the liabilities exceed assets at the club by £65m.
Andronikou is due to meet the Premier League this week in order to clarify if players can be sold outside the transfer window.

Further reading:

UHY Hacker Young wins Portsmouth administration

Portsmouth owner Balram Chainrai pledges £15 million lifeline to save club

Portsmouth forced back to court after HMRC challenges administration

Portsmouth administrator Andrew Andronikou faces probe