Portsmouth FC may need three weeks for new CVA proposal

Portsmouth Football Club’s exit from administration could be delayed by a
further month if HMRC do not agree on current proposals.

The taxman is set to reject Portsmouth administrators’ plans to help the club
get back on its feet, through a company voluntary arrangement (CVA).

Accountancy Age revealed HMRC regards the
administrator’s CVA offer of 20p in the pound return to creditors as too low.

A creditors’ meeting is due to take place on Thursday this week, where the
CVA will be voted on. For approval 75% or more of creditors need to vote in
favour of it.

Administrator Andrew Andronikou told the
News
of the World: “If our proposals are not accepted on Thursday, we will
adjourn the meeting for up to 21 days. We can then come back with another
proposal.

“But if that was not accepted, we would have to try to sell the club in
administration.”

If the club remains in administration at the start of the next season it
faces having further points deducted from it.

“That, and the large debts, would make it very hard to sell the club. And if
we can’t sell, then it would be a case of closing the club down. Thursday is a
huge day, but I’m confident we’ll do it,” Andronikou added.

HMRC represents approximately 25% of the overall vote for the CVA.

Andrew Andonikou, Peter Kubik and Michael Kiely were appointed administrators
to the former Premiership club on 26 February 2010.

Further reading:

Breaking
news: HMRC to veto Portsmouth CVA

HMRC
on the attack

Pompey
administrators hit back at alternative CVA proposal