Faz

Hmmmm. I smell a charge of finacial irregularity and illegal payment to Agents = -35points. Anyway, the Administration thing. At the creditors meeting what are the possible outcomes? 1. They have a buyer who will pay sufficient to clear all the debts - surely unlikely, and could only be one of the existing large creditors. 2. The have a buyer who will not clear all the borrowing. The unsecured creditors are unlikely to get much if anything. If the meeting votes in favour, then the club has to be sold through a CVA - to which HMRC will object. 3. There are no offers (or they are so low), the Administator feels he can get best value for the creditors by continuing to trade the business - Parachute payments, player sales etc 4. There are no offers, and the Adminstrator seesk Winding Up as outgoings exceed incomings - more or less already dismissed by AA. Any other options? And which is most likely - 3? Surely no-one is going to buy a club with potentially multiple charges of financial irregularity hovering over it? Or would new owners get away with it? I guess not a Luton didn't.

£18m HMRC £30m Gheydamak £22m Chainrai and rising? £8m Football creditors £78m. Gheydamak and Chainrai are secured. HMRC will not agree a CVA. So, even if they're not wiped off the face of the earth, how do they survive next season? A buyer will need to take on a debt mountain in the knowledge they have a championship club starting on minus whatever points, no ground, no training ground, no Academy, no players??. They cannot use the TV money just to pay off debts - they will need that to pay off contracts. What is all this nonsense about proof of funds. I've got a pound down the back of the sofa. Is he looking for £30m to pay off the unsecured creditors, and accepting £40m of debt? Why would Chainrai fund the administration, and the running costs? What is in it for him? I still smell lightly grilled bread.

Just catching up on this. I'll make my own too - where can I get red and white striped paint?

Just catching up on this. I'll make my own too - where can I get red and white striped paint?

And that, me old ex-patriot musher, is the killer. Even when they knew the game was up, they carried on as though nothing had changed. They were offering top dollar wages to no-mark players, money that could have been going towards easing the plight of their non-playing work-force. For Story-Teller to try to excuse himself is mere whitewash tactics. Why has no-one asked why they only have football creditors, and no football debtors???? Someone, somewhere, sanctioned the sale of players at knockdown prices for cash. IMO. Someone who begs to be kept on because they know the game inside out. And I think we know what game he's talking about.

The whole Administration thing is, as I mentioned 20 or so pages back(!), very bizarre. If Chennery had the power to put them into Admin, then why didn't he do it before the Winding-Up order was heard? He could not have expected another 7 days to prepare a Statement of Affairs, then chose to do it. If was in his power then the sensible thing would have been to do it before the WU hearing. It's a bit fishy imo - and, evidently, itoohmrc.

Is there in clue in the Administrator refering in the Daily mail article to HMRC testing the validity of the "Debenture". GM showed us, I believe, that the Debenture was registered after the Winding Up process had started. If the Admin is based upon the debenture, that could be HMRCs grounds to have it struck.

I do question which Bank might be prepared to do that in these credit crunched times. How much is aguarnatee from the EPL worth? About as much as the funding from Sky - who are gazillions in debt. Probably could still happen, but might not be a slam dunker.

No-one outside the inner sanctum at PFC will know the facts, but from what is in the public domain the debt is £78m. Of that about £10m is football creditors who will not be part of any CVA. Another £33m is Gheydamak, and secured so outside a CVA (He could give up his security and participate, but that's unlikely). £17m to Chennery is secured on the Ground, so again outside the CVA. He could take posession of the ground and sell it for fair value (but that would seem unlikely too), and prove in the CVA for the remainder. Which leave just about £18m owed to HMRC and other creditors, of which we know HMRC is at least £11.5m. So, by my reckoning, unless Chennery buys the club for £1 and pays off HMRC, thats a further points deduction next year. And if he was going to do that, then what was the point of going into Admin, as the 9pt deduction has cost them their PL place for definite. The PL may offset wages and football debts against the parachute money, they will still be paying some of those contracts for years to come, in the CCC or worse. And we don't know the terms of Gheydamaks loan. He says he is a soft creditor, but the loan must carry interest, and have some repayment term built into it. He may be prepared to play the long game, but that's only to extract the development potential. They can wait long after the club has folded to get their planning consent. And there is still the spectre of irregular payments to managers and Executives to consider. I might have it all completely screwed, but that's how I see it.

Just found out I've got a seat in a Corporate Box. I shall be rattling my prawn sandwich at you, peasants.

It's also a case of finding someone prepared to do it - we were turned down by several.

Just for you Nick, they're stll toast, but now to be slowly cooked over a camping stove, rather than flame grilled. If they go into Admin, and that's still an if because HMRC and His Honour may still have a say in it accordng to some, they need to pay off HMRC in full allow a CVA to proceed. So a pospeive buyer still needs to settle between £11m and £22m of HMRC debt, and football debts to get to the point of achieveing a CVA. No CVA means even if the football debts (and we dn't know how much they amount to) are paid, then they start on at least -15 next season. That's without the FL saying "hang on a mo - weren't you guys in admin before?". And without any further punishment if previus executives are found guilty of Financial Irregularities. No Ground, No training ground, no players, no parachute payment. So what does a rospective buyer get for acquiring/settling lets say £20m of debt and, at best, a Championship club. We had infrastructure and were saved at the last minute. I don't think this is the end game just yet. This is just a vehicle for Chinnery/Gheydaboy to get as much of his/their money back as poss. What I don't get is why wait until now to push the Admin button. They were taking a big chance on being given the time they were following the WU hearing. It could have gone south there and then.

There are too many people doing their day job, when they should be on here answering these questions FFS.

So they are advanced next years parachute payments. Half their remining squad is still on PL wages and have contracts which need to be paid up. Sol I guess is regarded as a football creditor, and other transfer payemtns are due. Rumour has it they are still payng part salaries of players sold previously, and no doubt will have to continue ot do so. HMRC will not lay down. Surely this is still the beginning of the end for them?

Questions: 1. If the SoA makes it clear that Admin cannot work (as surely it must do), can HMRC ask the court to put Administration aside and carry on with the WUO? 2. If Chainrai support the club to the tune of £3m per month - i.e. hands these funds over to the Administrator to pay wages etc, can he lay claim to PL/TV monies ahead of any other creditor? Can the Administrator do that type of deal?

There are dark forces at work

So, with the SoA in hand, HMRC could approach the Judge and ask them to view Administration as an expediance with no prospect of success, and ask for the winding up anyway?

Is it not 75% of the paticipating debt? Bear in mind Chainrai has cleared £10m of debt by taking the Ground. Also Gheydamak may be secured against other assets. If G decides to stand outside the CVA, relying upon his security, then it's entirely possible HMRC have a blocking share. That's not to say they won't accept a CVA, but would still be looking for the prospect of a reasonable dividend. And, if the CVA fails, they're back to square one. The CVA will be predicated upon sale of assets or TV money providing the funds to pay it up - how they can do that and survive in the Championship I don't know. If they don't exit via a CVA then isn't it another deduction of 20 points or so? And they still need to clear football debts. I'm still booking my seat for the 20000 post page.

That depends. The secured creditors can chose to stand outside the CVA - so then HMRC will have control of the CVA. IMO. It depends if the Gheydamaks are secured, and upon what. This'll run for a while yet.

If it's being reported that way, then I guess Chainrai can place them in Admin. But, even if they go into Admin, that is not the end of it. * They still have no funds to pay the running costs. * All loanees will be sent back * Some contracts will be cancelled by mutual consent to allow those that can to find new clubs. * I still don't see how an Administrator can cover the running costs between now and the end of the season - unless Balloo is underwriting those too pending the TV money. * They will have to come out of Admin paying all the outstanding football debts, via a CVA - HMRC have a blocking vote on that so may play hardball to get as much of thier money back as poss. * No funds left to run the club next year. * No Ground * No Training Ground * Still the prospect of charges from the FA for improper payments and sanctions as a result of that.

They are illiquid and insolvent. If they get placed into Admin, they are still illiquid and insolvent. The only income between now and season end is 6 home PL games (7000 x £25 x 6) £1.05m, plus the FA Cup game to add say £0.5m. Less costs which Pompey may not pay, but and Administrator would have to, probably taking care of £0.5m. So £1m Gross, to cover all salaries and running costs. Adminstration is NOT an option as it is not sustainable unless an Administrator is prepared to run up losses personally pending PL money coming in. The PL, as we all know, will prefer football creditors above the Administrator. It is either being bought, with an investor prepared to stump up £30+m to pay HMRC and see them through to the end of ther season, or Winding Up. IMO.

And we all know you can't polish a turd, right.

£1m pa rent at a yield of around 7% (somewhat less than ordinairy commercial property as there isn't a fantastic demand for football grounds in Portsmouth) gives a value of around £14.3m. I guess the remainder of Baloo's debt is secured on future TV income?

Hmmm... potentially. As the mortgage holder he is quite entitled to take possession upon default. If he then takes the title in lieu of loans owed to him, I guess it would have to be a transcation at value. Therefore he values to the Land at £10m plus a15yr lease at £1m pa. in respect of his £17m debt. In 15yrs time, the land is still his. If Pompey don't pay the rent, the land is still his. Clever boy.

So, Chainrai et al are awaiting proof of funds. That would usually come before Due Dillignece would it not? If it doesn't I ve got a few days off this week so I think I'll e-mail Pete and say I'm interested. SSN will reveal PS is in talks with TWO interested parties!!! PS will be hopeful of positive news within 48 hrs. No-one is going to do this wihtout full and proper due dilligence. They're toast.............