Portsmouth are close to agreeing a Company Voluntary Arrangement (CVA) with their creditors which would pay them 20p in the pound. This is more than creditors often receive in such circumstances. When a business collapses, trade creditors often in effect write off what they have lost and getting anything is a bonus. Unfortunately when a football club goes down many small businesses such as builders and printers often take a hit.
Portsmouth are close to agreeing a Company Voluntary Arrangement (CVA) with their creditors which would pay them 20p in the pound. This is more than creditors often receive in such circumstances. When a business collapses, trade creditors often in effect write off what they have lost and getting anything is a bonus. Unfortunately when a football club goes down many small businesses such as builders and printers often take a hit.
The key actors at Portsmouth were really Revenue and Customs. They do not usually favour CVAs at football clubs, but they have endorsed an arrangement which would see the club sold on within six to nine months and the existing company liquidated. The advantage of such an arrangement from the viewpoint of the tax authorities is that it would allow a thorough investigation into Portsmouth’s tangled finances. There were allegations that the club was trading while insolvent which is a serious matter. Shoud this be shown to be the case, or other irregularities (or even fraud) found, it might be possible to identify the responsible persons and take any appropriate action.