LIQUIDATORS FROM BAKER TILLY have been appointed to Portsmouth FC.
Geoff Carton-Kelly and David Hudson, partners at Baker Tilly, have been appointed liquidators at the request of some of the largest creditors at the club.
The club entered administration in February 2010. Andrew Andronikou, Michael Kiely and Peter Kubik, all partners at UHY Hacker Young, were appointed joint administrators.
It was previously proposed the UHY Hacker Young administrators would take on the role. However, creditors wanted "independent" liquidators.
A source close to the case told Accountancy Age that HMRC was one of the creditors that requested Baker Tilly's appointment.
In August last year UHY Hacker Young administrators were able to achieve a Company Voluntary Arrangement (CVA). The CVA is an agreement lasting five years which will pay back creditors approximately 20p for every pound owed.
The UHY Hacker Young administrators are also supervisors to the CVA.
As part of the agreement, the business of football, such as the players, managers and Premier League membership, was transferred to a new company. The original shell business has been liquidated.
Carton-Kelly said a "deeper investigation" on why the club collapsed would take place.
"As liquidators, we have a duty to ascertain any misconduct carried out by those in control of the company which has caused loss or prejudice to the general body of creditors.
"In some cases, if appropriate, the liquidator may be able to bring legal proceedings against third parties as well as directors or shadow directors for either wrongful trading or fraudulent trading, misfeasance or breach of duty with a view to recovering funds for creditors," said Carton-Kelly.
Hudson is a former professional footballer for Wimbledon FC, where he was goalkeeper.
An HMRC spokesman said: "As a major creditor, HMRC will naturally co-operate fully with the Liquidator in so far as the law allows. It is now the job of the liquidator to identify and realise any remaining assets for the benefit of creditors and to use his statutory powers investigate the circumstances surrounding the company's insolvency."
Dear Accountancy Age,
Please carry on publishing the reports on Portsmouth football club. There are not many other reputable sources reporting on this subject.
Posted by: Pompeyman, 07 Mar 2011 | 23:36
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