BusinessBusiness RecoveryHMRC calls for investigation into Portsmouth administrator

HMRC calls for investigation into Portsmouth administrator

Questions over Andrew Andronikou's appointment and the decision to place the club in a voluntary administration

Andrew Andronikou the administrator of premier league club Portsmouth has
been challenged over his appointment and decisions.

The administrator from UHY Hacker Young will be back in the High Court in two
weeks to face a challenge from the HMRC over the decision to place the club in a
voluntary administration and questions over his appointment.

Portsmouth entered into a voluntary administration last Friday just three
days before it was due to appear in the High Court following a winding up
petition from HMRC.

Justice Norris, residing, ruled the “shadow over the appointment should be
removed” and gave the club two weeks to investigate the appointment of
Andronikou and the clubs decision to enter voluntary administration the BBC
reported.

Gregory Mitchell QC, representing HMRC asked the court: “Have these
administrators been validly appointed?”

The disputes centre around whether Andronikou had links with the owner Balram
Chainrai prior to his appointment, compromising his independence.

Simon Barker QC, representing Portsmouth, said: “There is no reason to impugn
the conduct of these administrators at all. There is no reason the court should
have any doubts about their appointment and independence.”

HMRC are not happy with the decision of Andronikou to place the club in
voluntary administration. In its petition to hold an investigation into the
decision HMRC included details compiled by Vantis which showed the club needed
£7m by the end of the month and a total of £14m by the end of the season.

It is estimated that the liabilities exceed assets at the club by £65m.

Andronikou is due to meet the Premier League this week in order to clarify if
players can be sold outside the transfer window.

Further reading:

UHY
Hacker Young wins Portsmouth administration

Portsmouth
owner Balram Chainrai pledges £15 million lifeline to save club

Portsmouth
forced back to court after HMRC challenges administration

Portsmouth
administrator Andrew Andronikou faces probe

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