PKF ADMINISTRATORS have racked up £2.2m in fees for their work on the collapsed football club Portsmouth FC, according to the latest creditor report.
The administrators have incurred the £2.2m of fees in time costs for the period 17 February 2012 to 2 January 2013. This is for 7,295 hours of work which is an average of about £297 an hour.
However, the administrators have managed to draw £775,000 so far following approval from a creditor committee. At the end of the administration the administrators will decide on the percentage of their fees to be repaid with that figure needing creditor committee approval before it can be drawn.
The club entered administration for the second time in two years on 17 February, with PKF partners Trevor Birch, Ian Gould and Bryan Jackson appointed.
Fees for the six months ending 2 January 2013 amounted to £851,671 for 2,905 hours of work at an average hourly rate of £293 per hour.
The administrators are currently awaiting a court hearing which will determine whether a rescue deal will be viable through a sale to the Portsmouth Supporters Trust (PST).
The administrators said in the latest creditor report that “if a sale can’t be achieved a liquidation is the most viable option.”
PST has funded some of the trading costs amounting to £244,061. However, preferential claims so far come in at about £52,000 and unsecured creditor claims are about £35m, which £11.4m as football creditors.
In a football insolvency, football creditors such as players, managers and other clubs, are paid first and in full.
Other costs highlighted include solicitor fees for Pinsent Masons which for the year come in at about £1.24m and £79,000 for George Davies, who acted for the Professional Footballers’ Association, on negotiation of player wage deferrals and agent fees.
A short moratorium will give struggling companies a chance to be open with their creditors and negotiate a way out of their problems transparently, says Sykes
Out of a dozen sectors profiled only oil and gas and manufacturing were deemed to have a higher than normal risk of insolvency
Colin envisions how the Austin Reed administration is unfolding behind closed doors
Peter Saville, Kevin Coates and Catherine Williamson, of AlixPartners, appointed joint administrators of Austin Reed