Jump to content

Pompey Takeover Saga


Fitzhugh Fella

Recommended Posts

Can you be administrator of 2 different companies at the same time?

 

Yep, no problem with that, but might cause some issues when the admin of A is the same admin of B, When B is a creditor of A and the administrator owns 100% of shares in company A.

Link to comment
Share on other sites

SaintBobby:

 

1. What and who can stop Portsmouth entering administration?

 

HMRC or any other substantial creditor. If it can be proven that by going into admin creditors will be disadvantaged, the court can refuse. In my view, this is unlikely because the sale value of the players' registrations would become 0, to the disadvantage of the creditors.

 

2. Is it in anyone's interests to stop them going into admin - and if so, through what mechanism?

 

Not that I can think of, but am prepared to be corrected by more knowledgeable people

 

3. If, for whatever reason, they do go into admin, does this permanently suspend the WUP?

 

Admin provides protection from creditors, so the winding up petition will not be heard on Monday. It doesn't remove the debt though and a plan has to be conceived to settle the debts. HMRC will never vote for a CVA, but if they represent less than 25% of the debt again, they can be out voted.

 

4. Isn't it completely obvious that the club are insolvent? Their income simply doesn't match their expenditure - let alone start to clear their debts. What are the legal ramifications for being in admin while insolvent?

 

Solvency for football clubs is very difficult to ascertain, in terms of whether assets are more than liabilities. The liabilities are well known, but the value of the assets, particularly player registrations, are very difficult to value.

 

5. If they are prevented from going into admin, does the WUP order go ahead? And, if so, what could possibly prevent it succeeding?

 

not likely, see above

 

6. If the WUP order succeeds (now or later) do Portsmouth go out of business immediately?

 

not likely, but if it was heard on Monday and a winding up order was issued, all of the club's assets would be sold under supervision of the court.

Link to comment
Share on other sites

SaintBobby:

 

1. What and who can stop Portsmouth entering administration?

 

HMRC or any other substantial creditor. If it can be proven that by going into admin creditors will be disadvantaged, the court can refuse. In my view, this is unlikely because the sale value of the players' registrations would become 0, to the disadvantage of the creditors.

 

2. Is it in anyone's interests to stop them going into admin - and if so, through what mechanism?

 

Not that I can think of, but am prepared to be corrected by more knowledgeable people

 

3. If, for whatever reason, they do go into admin, does this permanently suspend the WUP?

 

Admin provides protection from creditors, so the winding up petition will not be heard on Monday. It doesn't remove the debt though and a plan has to be conceived to settle the debts. HMRC will never vote for a CVA, but if they represent less than 25% of the debt again, they can be out voted.

 

4. Isn't it completely obvious that the club are insolvent? Their income simply doesn't match their expenditure - let alone start to clear their debts. What are the legal ramifications for being in admin while insolvent?

 

Solvency for football clubs is very difficult to ascertain, in terms of whether assets are more than liabilities. The liabilities are well known, but the value of the assets, particularly player registrations, are very difficult to value.

 

5. If they are prevented from going into admin, does the WUP order go ahead? And, if so, what could possibly prevent it succeeding?

 

not likely, see above

 

6. If the WUP order succeeds (now or later) do Portsmouth go out of business immediately?

 

not likely, but if it was heard on Monday and a winding up order was issued, all of the club's assets would be sold under supervision of the court.

 

Thanks. V helpful.

Link to comment
Share on other sites

Yep, that's what I was alluding to[/quote

 

Administration has to be fully funded. It cannot trade at a loss. Unless there is an injection of sufficient funds or costs are cut to allow solvency it can't happen. Liquidation then is the only option, which HMRC will most likely be pushing for.

Link to comment
Share on other sites

13 February 2012 at 05:48 PM breville

 

Not sure how big a problem this is. We just got  £2.5m from PL and if we pack the park tomorrow we will be able to pay our bills and maybe get an emergency loan or two in? Surely we should be allowed to do that as we are in an emergency! Maybe we can get the parent club to pay too? Simeon Jackson would be good , or a Jamie Pollok type player

 

.....

Link to comment
Share on other sites

Lumpitt has just said "Theres about £2 million in the bank, including the money we got from th pp last week. But that is in the frozen account."

 

That dosent add up?

 

Also, Chinny hasnt paid anything.

 

So they got the parachute payment last week, but it went into the frozen account that they can't touch?

 

If true, how on Earth are they going to fund the Admin when they can't run day-to-day?

Link to comment
Share on other sites

Yep, that's what I was alluding to

 

Administration has to be fully funded. It cannot trade at a loss. Unless there is an injection of sufficient funds or costs are cut to allow solvency it can't happen. Liquidation then is the only option, which HMRC will most likely be pushing for.

 

So, there's no chance of a certain administrator pulling the wool over the authorities eyes to give the impression that the administration is being run solvently....if you get my drift?

Link to comment
Share on other sites

Surely they'll be docked more than 10 points? Bournemouth were hit with a 17pt deduction because it was their 2nd administration.

 

http://en.wikipedia.org/wiki/Administration_%28British_football%29#Clubs_in_England_.26_Wales_that_have_entered_administration

 

The -17 was for starting a second season in administration, not because it was their second.

Link to comment
Share on other sites

So, there's no chance of a certain administrator pulling the wool over the authorities eyes to give the impression that the administration is being run solvently....if you get my drift?

 

Possibly but will HMRC prove that they can't fund administration with current income.

Link to comment
Share on other sites

Mods, can we have a poll on here to vote for our favourite P*****pey administration?

 

My favourite was 2010, with Storrie and the guy in the car park at Fratton. However, with all the admins to choose from, I'm sure others have their own personal best memories.

 

On a separate note, did any one else see that Rangers signed a player, Cousin, this morning, and went into Admin at lunchtime. Has Storrie got a new job in Scotland?

Link to comment
Share on other sites

If the FA were stricter Pompey would already be dead....... Who else would buy that **** club?

 

I would imagine there was a whole queue of upstanding billionairre businessmen standing behind the russian at the time - honest....

Link to comment
Share on other sites

×
×
  • Create New...