BusinessBusiness RecoveryPortsmouth FC CVA approved

Portsmouth FC CVA approved

Portsmouth FC gets approval to exit administration after £13m image rights liabilities get stripped out of HMRC's claim

The company voluntary arrangement at Portsmouth FC was approved today at a
creditors’ meeting after the taxman’s voting power was reduced.

HMRC’s claim was cut from £37m, about 25% of the total debt owed by the club
to creditors, to £24m.

A source close to the case said administrators stripped out £13m of tax owed
on income generated from players’ image rights.

Because HMRC was treated as being owed £24m instead of £37m by the
administrators, it meant the taxman could not wield around 25% of the creditors’
vote by debt.

Steve Powell, an insolvency practitioner who sits on the creditor committee,
told Accountancy Age voting was 81.3% for and 18.63% against.

“It’s a reasonably good outcome as we [creditors] stand to receive a minimum
of 20p in the pound return,” said Powell.

Powell also confirmed HMRC voted against the CVA, which needed 75% or more of
creditors to vote in favour to be approved.

A statement from the taxman said: “HMRC notes that the result of today’s vote
was to accept the CVA proposals. We will now be carefully considering our
position. “

“HMRC stands by the full amount of its claim (£37m). We will now carefully
consider our position following (the club’s) decision to reduce the amount of
our claim for voting purposes,” it added.

Further reading:

Breaking
news: HMRC to veto Portsmouth CVA

Insolvency
practitioner to sit on Pompey creditor committee

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

3d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

3d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor