BusinessBusiness RecoveryHMRC fights for full voting rights at Portsmouth

HMRC fights for full voting rights at Portsmouth

HMRC's ability to block Portsmouth CVA was "unfairly prejudiced" by decision to reduce the weight of its vote

HMRC has claimed there were “material irregularities” when votes were counted
at the recent Portsmouth FC company voluntary arrangement (CVA) ballot, in a
court submission filed today.

The tax office said it was “unfairly prejudiced” in the voting process of the
CVA, set up by administrators.

HMRC filed an appeal against the CVA at the High Court today on the grounds
that: “the interests of HMRC have been or will be unfairly prejudiced” by the
decision to reduce its voting rights.

Voting rights are distributed based on the level of debt owed to each
creditor.

A CVA needs 75% of creditors, by value of their debt, to be approved. HMRC is
owed approximately £37m by Portsmouth FC, representing about 25% of the total
CVA vote.

However, its voting right was reduced to reflect just £24m.

Had HMRC been given its full vote it could have blocked the CVA. HMRC had
voted against the CVA, which will see creditors receiving approximately 20p in
the pound over five years.

The CVA is now frozen until a decision on the appeal has been made.

The administrators were unavailable for comment at the time of publication.

Earlier today, they said if HMRC’s appeal failed they would pursue it for
losses which could amount to “millions”.

Further reading:

HMRC
faces “millions” in costs if Portsmouth appeal fails

Portsmouth
FC CVA approved

Breaking
news: HMRC to veto Portsmouth CVA

Related Articles

Number of winding up petitions filed by HMRC rises by 13%

Business Recovery Number of winding up petitions filed by HMRC rises by 13%

1y Richard Crump, Writer
Interview: R3 president Andrew Tate

Business Recovery Interview: R3 president Andrew Tate

2y Chris Warmoll, Writer
R3 calls for creditor 'breathing space' to help turn companies around

Accounting Standards R3 calls for creditor 'breathing space' to help turn companies around

2y Chris Warmoll, Writer
Montpelier Professional winding-up order withdrawn

Accounting Firms Montpelier Professional winding-up order withdrawn

2y Calum Fuller, Reporter
R3 cautiously welcomes advent of simpler bankruptcy regime

Business Recovery R3 cautiously welcomes advent of simpler bankruptcy regime

2y Chris Warmoll, Writer
Bolton settle unpaid tax bill with HMRC

Business Recovery Bolton settle unpaid tax bill with HMRC

2y Calum Fuller, Reporter
Bolton Wanderers secures new ownership deal as HMRC tax battle continues

Business Recovery Bolton Wanderers secures new ownership deal as HMRC tax battle continues

2y Chris Warmoll, Writer
Bolton secures extra time to defend itself from HMRC

Business Recovery Bolton secures extra time to defend itself from HMRC

2y Chris Warmoll, Writer