Just when it looked as if Portsmouth were all set to emerge from administration through a CVA, new difficulties have emerged. At one time it looked as if Revenue and Customs (HMRC) were prepared to vote in favour of a CVA as part of a package deal, but now they appear to be taking a different view.
Just when it looked as if Portsmouth were all set to emerge from administration through a CVA, new difficulties have emerged. At one time it looked as if Revenue and Customs (HMRC) were prepared to vote in favour of a CVA as part of a package deal, but now they appear to be taking a different view.
A creditors’ meeting next Thursday is due to vote on an offer of 20p in the pound, which is more than is secured from some failing football clubs. However, HMRC claims to be owed £35m, a substantial sum, and wants to seek a better deal for the taxpayer. They are obliged to get the best deal they can.
The club needs 75 per cent of creditors to vote in favour of their offer. HMRC only holds 21 per cent of the vote and a defiant Andrew Andronikou, the Pompey administrator, argues that they could not block the deal. However, they would only need a few disgruntled smaller creditors to vote with them and the deal would be off. There is also the possibility of HMRC resorting to the courts again if they felt that the best interests of the taxpayer were not being served.
Quite where all this might leave Pompey in terms of a point deduction next season is complicated. Not only are the rules themselves far from straightforward, but there is also the question of how they are interpreted. Portsmouth fans are some of the most devoted anywhere in football, but they will need to draw on all their reserves of loyalty in what still looks like a rocky road ahead.
In a separate development, former Portsmouth chief executive Peter Storrie has been bailed to appear at Southwark Crown Court in September to face charges of tax evasion.