HMRC won't challenge Portsmouth CVA again
A spokesman for the tax office has confirmed that HMRC will not take any further legal action against the Portsmouth administrators' CVA proposals
The administrators of Portsmouth football club will receive no further
appeals to its company voluntary arrangement (CVA) from HMRC, following the
recent court decision to uphold the CVA.
A spokesman for HMRC said the tax-office was “disappointed” not to have won
an appeal, however he confirmed that it had no intention of launching any
further legal action.
Portsmouth administrators, Andrew Andronikou, Peter Kubik and Michael Kiely,
from UHY Hacker Young, proposed a CVA earlier this year. HMRC’s voting rights
were reduced at the creditor meeting, with the CVA being approved by 81.3% of
the creditors based on money owed.
A CVA needs 75% or more of creditors by value of debt to approve the deal.
The HMRC spokesman added: “Our aim when pursuing debt of any kind is to
achieve a fair outcome for the taxpayer and we will take this forward in the
wider context of the football industry through separate and outstanding legal
proceedings…”
The residing judge, Mr Justice Mann, said on each of the five points of
attack made by HMRC he felt non of them amounted to “unfair prejudice”.
He added HMRC were not “rendered worse off” as a result of the CVA with
alternative such as liquidation and relegation.
Further reading:
Portsmouth
see off HMRC’s CVA appeal
HMRC
faces “millions” in costs if Portsmouth appeal fails