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HMRC accepts validity of Portsmouth's administration
Accountancy News |
12/03/2010
HM Revenue and Customs (HMRC) has accepted the legality of Portsmouth Football Club entering administration.
The Premier League outfit will avoid a winding up order after HMRC accepted that latest owner Balram Chainrai was legally entitled to put the club into administration.
Commenting on the development, administrator Andrew Andronikou said the club had enjoyed a "very constructive meeting" with HMRC and provided a detailed analysis of its financial transactions with the chargeholder in the matter, Portpin Limited.
He commented: "HMRC should now be satisfied that the said debenture is valid and accordingly our appointment is valid."
Earlier this week, the ailing Hampshire club made 85 employees redundant and reduced the working hours of a further 12.
However, chief executive Peter Storrie kept his position ? albeit on a reduced salary ? and will remain at Fratton Park until a buyer for the club can be found.
Portsmouth, who remain stranded at the foot of the Premier League table, have received a nine-point penalty after becoming the first top-flight club to enter administration.
Posted by Stephen Wilkinson
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