Pompey Takeover Saga

[pedg]

http://www.guardian.co.uk/football/2010/mar/10/portsmouth-peter-storrie-andrew-andronikou

Having met Her Majesty's Revenue and Customs yesterday , Andronikou said he was "not unduly concerned" and is confident that HMRC would today ratify the process by which the club was placed in administration. HMRC is owed around £15m by the club.

Strange how almost everything they tend to be confident of at pompey never actually happens?

[Gorgiesaint]

i wonder if Alt Gr is the angry version of Alt?

 

i know, i know...coat :-(

 

This forum is nothing if not educational.... uo until today I'd never realised my computer had an alt gr key

[Ponty]

So has the WUO/Admin/HMRC case been actually dropped or are Sky just acting on a "scoop" from the Administrator?

[pedg]

So has the WUO/Admin/HMRC case been actually dropped or are Sky just acting on a "scoop" from the Administrator?

 

Given andy the android himself says he does not expect confirmation that HMRC are satisfied till sometime Thursday I would say they are being presumptive.

[Gorgiesaint]

I feel for Storrie, I really do.

 

Imagine having to take a 40% pay cut which leaves you on less that £500k pa. I mean how can anyone be expected to live on such a pittance.

 

He has such a tight grip on the trough that even the Administrator can't get him to let go. 4rsehole

 

Wasn't Storrie on £1.2m so he's now going to have to suffer only getting £700k pa, I mean its not as if they're in any finincial trouble or anything, is it?

 

How on earth can the administrator justify that one decision alone. If I was HMRC then that is one of the first things I would be bringing up in court (if they get the chance)

[Whitey Grandad]

Wasn't Storrie on £1.2m so he's now going to have to suffer only getting £700k pa, I mean its not as if they're in any finincial trouble or anything, is it?

 

How on earth can the administrator justify that one decision alone. If I was HMRC then that is one of the first things I would be bringing up in court (if they get the chance)

I read recently that part of Storrie's remuneration (40% ?) was a bonus related to the profit on player sales. Now that they can't sell any more players he is prepared to take a cut (40% ?).

[stockportsaint]

If that's true then it distorts the whole 'fair competition' business. Couldn't club A, having played Pompey twice and won, lend them some of their best players so that club A's rivals would have less chance of picking up points?

 

quite frankly i am still amazed that clubs can now loan players to each other in the same division. it never used to be allowed, apart from goalkeepers as a special case. Should go back to that rule IMO.

[dubai_phil]

http://www.telegraph.co.uk/sport/football/leagues/premierleague/portsmouth/7415616/Portsmouth-dismiss-85-staff-as-Peter-Storrie-takes-40-per-cent-pay-cut.html

 

Court Case now a formality

 

Poor old Storrie he has to settle for less than 500k a year. It must be So hard for him to make ends meet.

 

The Telegraph

The cuts came as it emerged that Her Majesty’s Revenue and Customs is preparing to withdraw its objection to the club’s administration. A High Court hearing scheduled for Monday is now a formality and confirmation of the club’s nine-point deduction is expected to follow.

The drastic cuts saw 20 full-time and 65 part-time staff made redundant across all departments of the club, reducing the staff from 320 to 235 with the possibility of more redundancies to come.

 

 

There was anger among staff leaving the club and considerable bitterness towards Storrie. He has been the senior executive at the club for eight years but will continue to draw a salary estimated at around £35,000 a month until the club is sold.

Mike Crawford, one of the club’s kit warehousemen for five years, said: “I feel betrayed by the club – I feel let down. I feel there are a lot of people to be blamed for doing this to the club.”

Storrie, who was not at Fratton Park on Wednesday as his office was used to inform staff who had been sacked, has agreed to take a 40 per cent pay cut but administrator Andrew Andronikou indicated he will remain in post until the end of the season.

Storrie is one of the best-paid executives in the Premier League, with a basic wage understood to be in the region of £800,000.

He was paid a total package of £1.2 million in 2008 including a bonus for Portsmouth’s FA Cup victory. Portsmouth’s administrator Andrew Andronikou said that Storrie, who has said he will stand down when the club is sold, remains an important figure as he sought to stabilise the club.

“He [storrie] would like to make it known that he has taken a 40 per cent cut in his basic wage. Peter Storrie has tended his resignation, he is working to a timetable. He will be earning significantly less than £500,000 and I don’t think there will be any bonuses this year.”

[Kingsbridge Saint]

So 'cut to the bone' leaves Storrie (henceforth referred to as overheads) on 420k per annum and all the loan players still on the payroll. Fishy indeed. Overheads need to be eliminated as far as possible to protect the creditors.

[CB Saint]

I see from the Telegrapf article that Baloo has provided a £15m loan facility to AA. I suppose that this is referred to as administrative costs and will be repaid first.

 

I also noticed that the MNRC is owed £18m of a total of £84M, LESS than 25%. This means that they cannot hold up a CVA without the support of other creditors. Are they going to get shatfed again?

[Goalie66]

Wouldn't it be ironic that PCFC go into voluntary liquidation as they run out of cash by the end of April as no buyer is found, All their results expunged with two games of the season left !!

 

I cannot see who would want to buy them. Can you?

[Chin Strain]

I see from the Telegrapf article that Baloo has provided a £15m loan facility to AA. I suppose that this is referred to as administrative costs and will be repaid first.

 

I also noticed that the HMRC is owed £18m of a total of £84M, LESS than 25%. This means that they cannot hold up a CVA without the support of other creditors. Are we going to get shatfed again?

 

A correction to your post....

[Gorgiesaint]

Court Case now a formality

 

Poor old Storrie he has to settle for less than 500k a year. It must be So hard for him to make ends meet.

 

So the court case is now a formality, lets hope its just a case of crossing the i's and dotting the t's then!

 

Surely HMRC must have something to say about keeping on a CEO who has overseen the demise of the club on £35k per month!! PFC have not really done anything to dent the overall wage bill - it would appear that none of the players have deferred or taken a cut so how much have they taken off the rumoured £4m per month bill? Given their negligible income until the end of the season, are they in a position were they are now trading solvently?

 

Edit - should have read the Telegraph article first - will Chainrai actually put his hand in his pocket though?

Edited 11 March, 2010 by Gorgiesaint

[dubai_phil]

http://www.telegraph.co.uk/sport/football/leagues/premierleague/portsmouth/7415616/Portsmouth-dismiss-85-staff-as-Peter-Storrie-takes-40-per-cent-pay-cut.html

 

Court Case now a formality

 

Poor old Storrie he has to settle for less than 500k a year. It must be So hard for him to make ends meet.

 

...........

 

“He [storrie] would like to make it known that he has taken a 40 per cent cut in his basic wage. Peter Storrie has tended his resignation, he is working to a timetable. He will be earning significantly less than£500,000 and I don’t think there will be any bonuses this year.”

 

So that means they don't expect to sell any of their highly valued players then :smt044

[pedg]

Looks like their talks with HMRC were over more than just the legitimacy of the administration.

 

http://www.independent.co.uk/sport/football/premier-league/16380000aweek-footballers-fail-to-take-pay-cuts-to-save-club-cleaners-1919453.html

The biggest spectre hanging over Portsmouth remains the High Court proceedings brought by HMRC. Mr Andronikou met HMRC on Tuesday afternoon and expects to receive a letter this morning telling him whether Customs are willing to allow the club to reschedule its outstanding debt or reach a settlement figure, ahead of a High Court hearing next Monday.

Would hope the answers are No and No. Anyway given that they obviously have NO money how can they negotiate a settlement figure?

[suewhistle]

Not sure how the law stands these days (being a Johnny Foreigner and all that) but if I recall there is some sort of precedent that says "I was only doing my job Guv" isn't actually a defence in major criminal legal cases?

 

Now if I could only remember when that one was first trotted out?

 

Southampton University library have a full set of the trial transcripts... or did 35 years ago.

[Weston Super Saint]

I see from the Telegrapf article that Baloo has provided a £15m loan facility to AA. I suppose that this is referred to as administrative costs and will be repaid first.

 

I also noticed that the MNRC is owed £18m of a total of £84M, LESS than 25%. This means that they cannot hold up a CVA without the support of other creditors. Are they going to get shatfed again?

 

Nope.

 

The £84m is TOTAL debt - we know Chainrai [if the admin is confirmed] has probably in the region of £30m of this and is a secured creditor. I guess Gady is a secured creditor[?] and is owed another £30m, which leaves £24m of unsecured debt, of which HMRC is owed £18m, which is a hell of a lot more than 25%!!

 

Since the CVA needs ratification from the unsecured creditors, and HMRC aren't going to ratify, you needn't worry, as they will indeed be toast

[dronskisaint]

http://bleacherreport.com/articles/359695-the-storrie-of-the-blues

 

Oh I did enjoy reading that

 

Me too - I sent it to everyone I know who might even know a skate:D

[dubai_phil]

Looks like their talks with HMRC were over more than just the legitimacy of the administration.

 

http://www.independent.co.uk/sport/football/premier-league/16380000aweek-footballers-fail-to-take-pay-cuts-to-save-club-cleaners-1919453.html

The biggest spectre hanging over Portsmouth remains the High Court proceedings brought by HMRC. Mr Andronikou met HMRC on Tuesday afternoon and expects to receive a letter this morning telling him whether Customs are willing to allow the club to reschedule its outstanding debt or reach a settlement figure, ahead of a High Court hearing next Monday.

Would hope the answers are No and No. Anyway given that they obviously have NO money how can they negotiate a settlement figure?

 

The fans idolise them. They kiss the badge and then...

 

]Independent[/b]

On the day Portsmouth announce they are making 85 staff redundant, it emerges only two players offered to help out

[/QUOTE]

[Gorgiesaint]

http://www.independent.co.uk/sport/football/premier-league/16380000aweek-footballers-fail-to-take-pay-cuts-to-save-club-cleaners-1919453.html

 

Gotta love the last paragraph

 

The club's media-relations manager left last week, dismayed by the events which have befallen the 2008 FA Cup winners. The switchboard staff evidently followed him out of the door, as calls to the club switchboard elicited an "unobtainable" dial tone last night.

 

Well if the switchboard staff weren't there, the phone would just ring - sounds like BT have cut the phones off

[pedg]

See the world has taken androids word for it that HMRC will accept the administration. Would be SO funny if HMRC came out and said 'No, see you in court Monday'.

[dubai_phil]

The race today and tomorrow will be to solve the main issue that has been forgotten.

 

The funding for Administration.

 

With the monthly burn rate at around 4mil they have March April & May wages and running costs to pay.

 

Part of the admin issue was that Chanrai offered only a bank statement as Proof of Funds. As Saints Takeover watchers may be aware, even Tony Lynham managed that. The missing element was the contractual proof that the amdin can be funded.

 

Don't confuse this problem with the "Debts" they will still remain.

 

So, Android must prove that those funds are guaranteed.

 

Then, to play again next season, they will have a burn rate of 2-3 mil in June & July, offset by ST revenue and player sales but still touch and go timing wise.

 

This leaves them effectively at the start of next season needing to pay their own way, whilst ensuring that the Football Debts have been cleared.

 

So the maths.

 

A guaranteed 12mil

Football Debts 8mil

Summer Burn (say) 5mil

 

ST income and player sales - the PROBLEM is that IF they use ST's and player sales to repay the football debts to get to the start of the season - ie they raise 13mil - how do they fund a CCC campaign?

 

So they need the cash, they need the future income, and that is without the "Selling price" to a buyer to take over the "Other Debts" - ie cut a deal on 70mil ish.

 

The cash is TV and parachutes, that gets the club through admin BUT leaves them a total rape victim at the start of next season, possibly in a worse state than they are now.

 

The buyer will have to fund the club through the season with only CCC income and Chanrai & Gaydamark while they may accept a "Haircut" on the debt will not release the land/charges on the assets.

 

Difficult to do, but they can survive to the end of the season. Watch for the Android Churchillian Speech about the guaranteed admin funding.

[hutch]

I think the debt position at the time of going into administration is the relevant point.

 

I think the purpose of administration is to improve the prospect for creditors, not make it worse.

 

I think, therefore, that the administrators can't increase the debt (that begs the question of whether they can accept Chainrai's "offer" of £15m)

 

The administrators have said that the total debt is either £78m or £83m

 

The administrators have said that Gaydamak's debt is £30.5m and is secured

 

The administrators have said that Chainrai's debt is £13.5m and is secured

 

Therefore the "unsecured" debt is, at most, either £34m or £39m (bear in mind that football creditors are included as "unsecured" even though they will be paid in full later by a new owner, so those creditors have no reason not to agree to any CVA)

 

HMRC were owed £12.1m at the time of administration. That should not increase, as the administrators must pay HMRC as it falls due during administration.

 

HMRC represents either 31% or 36% of the unsecured debt, and will be required to agree to any CVA if further points deductions and embargos are to be avoided.

Edited 11 March, 2010 by hutch

[Gorgiesaint]

I think the debt position at the time of going into administration is the relevant point.

 

I think the purpose of administration is to improve the prospect for creditors, not make it worse.

 

I think, therefore, that the administrators can't increase the debt (that begs the question of whether they can accept Chainrai's "offer" of £15m)

The administrators have said that the total debt is either £78m or £83m

 

The administrators have said that Gaydamak's debt is £30.5m and is secured

 

The administrators have said that Chainrai's debt is £13.5m and is secured

 

Therefore the "unsecured" debt is, at most, either £34m or £39m (bear in mind that football creditors are included as "unsecured" even though they will be paid in full later by a new owner, so those creditors have no reason not to agree to any CVA)

 

HMRC were owed £12.1m at the time of administration. That should not increase, as the administrators must pay HMRC as it falls due during administration.

 

HMRC represents either 31% or 36% of the unsecured debt, and will be required to agree to any CVA if further points deductions and embargos are to be avoided.

 

I think that may be the key issue here - surely if the business cannot function without taking on a loan then its insolvent.

 

HMRC's response will be interesting to say the least.

[OldNick]

Somebody wake up Clapham saint and Bucks saint who are in the business to give us their inside knowledge of the workings of this process. Also their thoughts why the CEO has been left in place.

It was interesting to hear Krasner on Solent and his views. He said' nothing in football surprises 'him when asked about Storrie keeping his job. he did say that the administrator was correct that he couldnt release players.

[anothersaintinsouthsea]

I think the debt position at the time of going into administration is the relevant point.

 

I think the purpose of administration is to improve the prospect for creditors, not make it worse.

 

I think, therefore, that the administrators can't increase the debt (that begs the question of whether they can accept Chainrai's "offer" of £15m)

 

The administrators have said that the total debt is either £78m or £83m

 

The administrators have said that Gaydamak's debt is £30.5m and is secured

 

The administrators have said that Chainrai's debt is £13.5m and is secured

Therefore the "unsecured" debt is, at most, either £34m or £39m (bear in mind that football creditors are included as "unsecured" even though they will be paid in full later by a new owner, so those creditors have no reason not to agree to any CVA)

 

HMRC were owed £12.1m at the time of administration. That should not increase, as the administrators must pay HMRC as it falls due during administration.

 

HMRC represents either 31% or 36% of the unsecured debt, and will be required to agree to any CVA if further points deductions and embargos are to be avoided.

 

It does beg the question what can the £43m of debt to Gaydamak and Chanrai be secured on? Farton Park can be worth much more than £10m, they have no other non-player assets

and the players themselves aren't worth much.

[pedg]

It does beg the question what can the £43m of debt to Gaydamak and Chanrai be secured on? Farton Park can be worth much more than £10m, they have no other non-player assets

and the players themselves aren't worth much.

 

I was under the impression that Gaydamak's debt was not secured per say but that he held the aces in terms of owning surrounding land should any development take place. So if anyone wants to do any development then he could insist on the money he was owed.

[Kingsland Red]

It does beg the question what can the £43m of debt to Gaydamak and Chanrai be secured on? Farton Park can be worth much more than £10m, they have no other non-player assets

and the players themselves aren't worth much.

 

Gaydamak is owed about £9m which should have been paid in January, with the balance paid by 2012.

Chainrai's debt currently has no timescales other than he will not release the ground until he has been paid.

His loan for administration would increase any debt.

With the PFC debt substantially greater than assets and ongoing income it is going to take a very philanthropic owner with a bottomless pit of funds to keep the business going for the next few years until these two are paid off in full.

[hutch]

I was under the impression that Gaydamak's debt was not secured per say but that he held the aces in terms of owning surrounding land should any development take place. So if anyone wants to do any development then he could insist on the money he was owed.

I think you're right. I "remembered" reading that the administrator (Keily) said it was secured. When I read back, he said he has seen evidence that it is correct, not secured. My mistake. Makes the rest of my post a load of bőllocks, then.

[sidthesquid]

On the subject of CVAs though - we all pre-suppose that all other creditors except HMRC will accept it. There may well be quite a few other creditors not happy to take a penny or two in the pound, which is all they are likely to get, particularly if anyone with links to Gaydamak/BVI etc etc appears as the buyer.

[slickmick]

If nothing is heard from HMRC today or tommorrow, do we assume the Court hearing still stands for Monday ?

[bristolsaint29]

http://www.portsmouth.co.uk/newshome/HMRC-to-drop-court-challenge.6142212.jp

 

Bugger

[krissyboy31]

Interesting interview with Chanrai with Bloomberg TV (just shown on SSN). Asked if the funds are in place to complete the season, he says that Android had ensured him that he could manage the funds to get through to the end of the season. Very different from the view that Chanrai himself had guaranteed funds.

[INFLUENCED.COM]

http://www.portsmouth.co.uk/newshome/HMRC-to-drop-court-challenge.6142212.jp

 

Bugger

 

nickh's gonna go mad !!

[Thorpe-le-Saint]

I'm still ****ed off that Chester were wound up for owing £27,000 compared to Portsmuff's mountain of debt!

[slickmick]

Interesting interview with Chanrai with Bloomberg TV (just shown on SSN). Asked if the funds are in place to complete the season, he says that Android had ensured him that he could manage the funds to get through to the end of the season. Very different from the view that Chanrai himself had guaranteed funds.

 

So if he has funds, then surely there from Chainrai.

[krissyboy31]

http://www.portsmouth.co.uk/newshome/HMRC-to-drop-court-challenge.6142212.jp

 

Bugger

 

I wouldn't believe that, just yet! Spin by Android saying they (HMRC) have now got all the information they requested and should be happy about the legitimacy of administration. It's not like he's not been economical with the truth before, is it? Until this is reported through official channels and not a PCFC mouthpiece, I wouldn't take much notice.

[Islander]

http://www.portsmouth.co.uk/newshome/HMRC-to-drop-court-challenge.6142212.jp

 

Bugger

 

It says 'The News has learned....' Maybe in the same way we have learned this unconfirmed news. I don't think there have been any direct quotes from anyone, have there?

[krissyboy31]

So if he has funds, then surely there from Chainrai.

 

Not extra money, no!

[Under Weststand]

I'm sorry if I being thick here, but I thought that the job of an administrator was to put the club into a stable financial position & not to increase the debt & ultimately to find a buyer acceptable to the secured creditors. So how the hell does taking out another 15-million loan go with this in a legal sense?

Now I know that in our administration we sold players had donations etc, got rid of staff virtually all directors imediatley(part of his agreeing to take us on)to keep us going. MF then paid for the next tranch with the exclusivity to keep us ticking on for the last month untill our saviour turned up in ML & NC. What he didn't do was to take out a LOAN to see us through a couple of months in the hope of finding a saviour.

 

Just seen the interview with Chainrai on SSN if he's not given AA the money then where has it suddenly come from, down the back of Storries couch in a brown paper envelope?

 

p.s has Alcoholics had his letter yet this morning?

[bristolsaint29]

There is always a day in the administration when you have to look at yourself and wonder whether you like the job you do, but it is a necessary job," said Andronikou, who said he could not estimate the total savings of the cuts.

 

Thought it was his job to know how much he was saving?

[Under Weststand]

http://www.portsmouth.co.uk/newshome/HMRC-to-drop-court-challenge.6142212.jp

 

Bugger

I wouldn't be to concerned about that yet. Lets remember that when AA took over the court case & winding up order were null & void, we then had a week of AA telling us what they were going to appeal the points deduction ect ect.

Then all of a sudden HMRC hit them with the illegal Admin court case.

Now HMRC are not acting in haste here, they've been handed documents, not to sure at what time they've been given them. But I'd imagine that unless its blatantly, conclusive & obvious evidence that the Admin is OK, then they will be doing a very careful & forensic check on said documentation, and therefore no quick reply today.

[Guided Missile]

I wouldn't believe that, just yet! Spin by Android saying they (HMRC) have now got all the information they requested and should be happy about the legitimacy of administration. It's not like he's not been economical with the truth before, is it? Until this is reported through official channels and not a PCFC mouthpiece, I wouldn't take much notice.

The Times reported the same story this morning.

 

The Times has learnt that Revenue & Customs will accept that his administration is valid after receiving documents requested at a High Court hearing last week.

With assurances from the FA that prize money and other revenues from their FA Cup run will not be withheld, and a financial guarantee from Balram Chainrai, the owner, that the club will fulfil their fixtures this season, his attention can now turn to finding a buyer.

 

Look like they've dodged the bullet, this time...

[saintds]

Look like they've dodged the bullet, this time...

 

Has there been any official confirmation of this from HMRC? And what now happens with the WUP?

[rallyboy]

so is Chanrai putting in a real £15M to upgrade his initial imaginary donation into

a £30M debt?

If so he's kindly loaning back some of the money he recently trousered out of the backdoor.

 

Either way that is one debt-heavy, asset-free, cash-gobbling machine that AA's trying to sell - mainly to people off here if a few posts are to be believed.

 

AA still looks like a clueless balding man who's pretending he isn't balding, or clueless - he's got that Steve McLaren comb-forward thing going on, it doesn't fool anyone mate.

 

Bearing in mind we thought this comedy show was over six months ago, we shouldn't begrudge them some breathing space from the taxman, he will be back with more gags shortly.

[Matthew Le God]

I'm still ****ed off that Chester were wound up for owing £27,000 compared to Portsmuff's mountain of debt!

 

Why?

 

On the morning Chester went to court they were not in a league having been expelled and therefore had no future revenue.

[rpb]

Has there been any official confirmation of this from HMRC? And what now happens with the WUP?

 

I expect that we will have to keep on eye on this...

 

http://www.hmcourts-service.gov.uk/cms/list_chancery.htm

[Sour Mash]

The Times reported the same story this morning.

 

The Times has learnt that Revenue & Customs will accept that his administration is valid after receiving documents requested at a High Court hearing last week.

With assurances from the FA that prize money and other revenues from their FA Cup run will not be withheld, and a financial guarantee from Balram Chainrai, the owner, that the club will fulfil their fixtures this season, his attention can now turn to finding a buyer.

 

Look like they've dodged the bullet, this time...

 

Can one of the more clued up on here explain how/what has happened? Why did the HMRC have to go to court if PCFC had the correct paperwork? Why did it take them until now to get the correct paperwork to the HMRC? This is all far too confusing for me

[tony13579]

The biggest spectre hanging over Portsmouth remains the High Court proceedings brought by HMRC. Mr Andronikou met HMRC on Tuesday afternoon and expects to receive a letter this morning telling him whether Customs are willing to allow the club to reschedule its outstanding debt or reach a settlement figure, ahead of a High Court hearing next Monday.

On face value It apear they may have negotiated a deal. However weare talking about Mr astrilogicalfees and dotting T's and crossing I's. He stated that on thirsday he expected to recieve a letter from his tuesday meeting? That would be about... 48 hours then .... as stated above they have half a million pounds and an 18 million tax bill..... none of this adds up.

 

If they achieved a perfect storm and balu gave them 11 million, they won the cup, they were religated with two years parachute payements, they sold every player for near top dollar.... they are still short of millions.

 

I did note that cardiff are on thier third winding up order... even if they escape this one there are plenty more chances for HMRC to put the boot in.

[JackFrost]

http://www.portsmouth.co.uk/newshome/HMRC-to-drop-court-challenge.6142212.jp

 

Bugger

 

That paper also reported 2 weeks ago that Pompey had been saved by a South African consortium