After storming off in a huff last week, Balram Chainrai has once again lodged a bid for Portsmouth. Given his financial entanglement with the club this was always likely. He is owed £17m and holds Fratton Park as security.
After storming off in a huff last week, Balram Chainrai has once again lodged a bid for Portsmouth. Given his financial entanglement with the club this was always likely. He is owed £17m and holds Fratton Park as security.
A statement issued by Portpin said: ‘After many discussions with the related parties, including amongst others, the administrator, the Football League, the PFA, and officials from Portsmouth City Council, Portpin Ltd announces that it has decided to take action in order to avoid the imminent liquidation of Portsmouth FC.’
‘Portpin’s offer will be in much the same form as previously with the club’s current CVA being honoured and football creditors being settled in accordance with current agreements. Under Football League rules, the satisfactory treatment of football creditor obligations is critical to the financial eco-system of all members of the Football League.’
‘Although Portpin positively viewed takeover interest by the Portsmouth Supporters Trust, we understood from the administrator that the terms offered by PST were problematic in two areas – the further reduction in football creditor debt to £2million and the uncertainty of the committed capital raised and held in escrow to both fund the takeover of the business and to provide guarantees for the next three years’ cash flow.’
Portsmouth Supporters’ Trust insist that their bid is still on track and are due to submit a business plan and revised offer today. However, despite the preferences of supporters and gthe wishes of the backers of fan ownership, Chainrai simply has more resources at his disposal in the short term. Administrator Trevor Birch is believed to have struck compromise agreements with the club’s senior players totalling about £8m.
Former Watford owner Laurence Bassini has also registered an interest. However, given the urgent need to find a solution, he is not realistically in the frame.