Portsmouth's Bank Account Frozen
Tue 31st Jan 2012 | Money & Finance
Portsmouth have failed to pay their players’ wages after its accounts were frozen following a winding-up petition that was issued by HMRC.
A statement released by the club yesterday read:
“Further to our recent update that a winding-up petition has been issued and publicised to Portsmouth Football Club, the club’s bank accounts have been frozen, which is the normal process in these circumstances.
“The club is now seeking a validation order from the court in order to have its bank accounts unfrozen so that staff wages and suppliers can be paid. This is expected to take a few days and once obtained this will allow our bank accounts to be reactivated.
“Based on our current information we expect this process to be completed by the end of the week and would like to thank all our staff, fans and suppliers for their ongoing support.”
HMRC issued the petition following the revelation by administrator Andrew Andronikou, that they had missed two tax payments of £800,000 to HMRC.
Portsmouth will now appear in court on the 20th Feb and face being forced out of business unless new funds can be found.
The club’s parent company, Convers Sports Initiatives (CSI), was placed in administration in November 2011 following the arrest of its Russian owner, Vladimir Antonov. But the club’s administrator has struggled to generate expected funds from the sale of other CSI businesses that might have assisted the club's position.
The club's working capital position has therefore been severely stretched while they seek to resolve the ownership situation and has resulted in the debts that are due to HMRC.
It’s reported by BBC South that any prospective purchaser would need to provide £12m as proof of funds, and assurances they could meet another £20m in repayments to former creditors, Balram Chainrai and Alexandre Gaydamak.
Written by: Aaron Gourley
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