Council to provide loan to Pompey fans trust
Portsmouth City Council is expected to approve a £1.45m 12 month loan to help fans bid for Pompey. The money will only be made available to the Pompey Supporters' Trust if there is no other commercial alternative to bringing the club out of administration.
Tough conditions are expected to be attached to the loan. The club and its assets have to be bought for £7.68m which includes provision for the full and final settlement of the football creditors. This requires agreements with all players on high wage contracts.
Trevor Birch, joint administrator of Portsmouth FC, said yesterday: 'I am pleased to announce that we have reached a compromise agreement with Tal Ben Haim, who will now leave the club. We expect to make an announcement on Liam Lawrence's future later.'
'While the situation with Kanu has not yet been resolved, we are cautiously optimistic about our prospects. The progress that we have made over the past 24 hours means that there is now a much better prospect of meeting the conditions of CVA, completing sale of the club and avoiding liquidation. '
The club owned and operated by the trust will be required to secure the rights to the £11.7m of parachute payments. The council would receive an assignment of parachute payments to repay the loan or a suitable investor guarantee. The trust will have to appoint a suitably qualified chief executive.