Birmingham International Holdings, the parent club of Birmingham City, have warned the Hong Kong Stock Exchange where they are listed that they will report ‘substantial losses’ for the financial year ending June 2011. No investment has been received by the club from the parent company since relegation. The assets of leading shareholder Carson Yeung are currently frozen following allegations of money laundering.
Birmingham International Holdings, the parent club of Birmingham City, have warned the Hong Kong Stock Exchange where they are listed that they will report ‘substantial losses’ for the financial year ending June 2011. No investment has been received by the club from the parent company since relegation. The assets of leading shareholder Carson Yeung are currently frozen following allegations of money laundering.
The company has had to borrow HK$180k from Inhahtha, a company based in the British Virgin Islands, at a high interest rate of 12 per cent to fund its immediate needs. The search for new investors continue, Yang Yuezhou being one name mentioned. The club’s deputy chairman has loaned them £14.5m and £6.2m of that can be converted into a 14 per cent shareholding.
There is thought to be no immediate risk of the club going into administration but Blues fans are concerned that there will be a fire sale of players such as Liam Ridgewell and Nikola Zigic in the January transfer window just at a time when it is making progress on the pitch.