Faz

I thought it might be quite poignant to go along to the last ever game at Farton in a "tricoteuse" kind of way. But I guess it's a sell-out already - right?

To enter Admin, they have to find an Administrator willing to run the business to the end of the season. Which Administrator is going to run up debts of £26m until he can start to sell assets? Administration is NOT an option here. They either get bought and the debts - or at least the pressing ones - are paid off, or they get wound up. IMO. They're toast......

So the HMRC debt is now £18m. Even if the PL let them sell the whole squad tomorrow they wouldn't raise that! All they have left are aging has-beens, over-paid prima donnas and loanees. Talk of rescue is futile Mr Bond. I reckon the £26m needed to see them through to the end of the season is just trading shortfall - it obviously can't include paying £18m to HMRC. If they go into admin, they have to exit via a CVA, which at £18m the HMRC can block if they want to. So a goodly proportion of that debt will remain. They will not own the ground, but still owe Chainrai £7m and have to pay him £1m pa rent! There are still football debts owed. So an astute group of South African-led business men will need to pay, or acquire debt, of: £18m HMRC £26m Trading shortfall £7m Chainrai £28m Gheydamak £5m other debts (including Sol) £84m - for a Championship club, which does not own it's Ground, nor has any training facilites or infrastructure. The parachute payment will have to go on paying off their player contracts and bonuses. Even in a CVA situation, if the debts outstanding were halved you still have the trading shortfall of £26m, and debts of £29m, total £55m. Hell let's say everyone writes off their debts, just fund the £26m trading shortfall. They're toast.............

By all logic they should already be in administration. The fact that they're not suggests, as you say, they maintain the hope that someone will buy them out before a receiver/administrator gets involved and starts turning over rocks. The inference is the Vantis report says they're f****d, but the Directors say "Yes but we've got a ticket for this week's Euromillions and that'll sort us out". The Directors are so far in the mire, any hope is better than none. They're toast.............

Administration will not happen. There are two types of insolvent liquidation procedure: Creditors’ Voluntary Liquidation When the directors conclude that the company is insolvent and that there is no alternative to liquidation, they are able to convene meetings of the shareholders and creditors. The shareholders will resolve to place the company into liquidation, whilst the creditors will have the final say as to who will act as liquidator. Compulsory Liquidation A creditor owed at least £750 may present a winding up petition to the Court, and if the debt remains unpaid at the date of the Court hearing, the Court may grant a winding up order in respect of the company. If the SoA gives no hope, then CVL is a strong possibility. Once the Directors give notice of the meeting then the game is up. I reckon about lunchtime tomorrow.

Mind you, the insolvency test is an interesting one - there are plenty of insolvent companies out there who continue to trade with the backing of their creditors, Bank and such things as Directors loans. It only becomes an issue if they are also illiquid - ie they do not have the cash to pay their liabilities as they become due. The issue, therefore, is whether PFC are both illiquid, and insolvent. A short term loan for EPL may make them liquid, but would need to be enough to see them through to whem they can sell players - and HMRC may still make a case for Winding Up if they do not believe they will get their money and can convinve the court. You have to say PFC have form on this as Jans TV money was diverted to meet Football Debts rather than HMRC. They're toast........

If the Vantis report declares them to be insolvent, then the Directors can: a) Apply to the Court for an Administration Order - unlikely to be granted, and they would still need to find someone willing to be an Administrator, or b) The Directors could vote to Wind-Up - A Creditors Voluntary Winding Up?? The Official Receiver takes over and tries to get what he can for the unsecured creditors. Don't know if the Directors can do this whilst the HMRC Petition outstands. If they continue to trade whilst knowingly insolvent, then the Directors commit a criminal offence don't they?

I do hope you get saved, but can't see it ahead of at least Administration. Whoever buys you at present would assume debts of £12m HMRC £18m Gheydamack if reports that he'll settle for that are true £25m of football debts admitted by Storyteller £17m Chainrai £20m running costs to the next substantial slug of income That £92m of debts or funding required to buy what is likely to be a Championship club, at best. On top of that if the cases against Twitchy, Story-Teller and Mad Milan are proved, there is also the possibility of FA sanctions, meaning points deduction or demotion if past cases are a guide. If some one does buy you for a £1, probably it does depend upon the other PL clubs agreeing to an advance payment to you to keep you alive, and the other creditors agreeing to wait until the end of season to sell players - if you can. The problem is, the parachute money is needed to keep you afloat in the Championship. If the HMRC is placated, does that mean the Staement of Affairs does not need to be presented? The accusation of trading whilst insolvent still stands, does it not? If there is a reprieve, I fear it may be a fleeting one.

Haven't things gone beyond an £11m handout? Thye have been asked to produce a Statement of Affairs to prove they are not trading whilst insolvent. The £11m may pay the Taxman, but it won't prove they're solvent. And then they still have to pay their running costs for the next 6 months, including YET ANOTHER player signed yesterday - if anything's a disgrace, that is. How the EPL can allow them to continue to sign players whilst they're in this position in the courts is, frankly, beyond belief and immoral.

As I said earlier £17m, plus HMRC is probably £10m by now, plus "Football Debts" £25m, plus £3m per month for the next 5 months, Plus Gheydamacks millions. Whoever buys them needs to take responsibility for £95m of debts. For a Championship Club.

So BC is already owed £17m, chucks in £10m to satisfy HMRC, and then needs to pay £15m to meet wages for the next 5 months. That's £42m he needs to sell for just to get his money back. Add in Stories £25m of football debts, that's £67m of debts a buyer would need to clear even if they bought it for £1. For a Championship Club. And Gheydamack is still owed gazillions. Can't see it.

Story Teller's negotiations with HMRC; HMRC: So, you owe us £7.5m, £10m , £11.5m, whatever. We had a repayment schedule upon which you failed to make even one payment. In the last month you've had £7m of TV money, and £8.5m in player sales which has all been diverted to meet other debts. And I understand you now owe the Scummers £120k (including VAT!). So, what is your proposal now? ST: Well, a friend of Uncle sacha, has a friend who knows soemone who might be taking over the club at some hitherto unexplained time. There are defo interested parties. It could be the son of a Dictator, or perhaps third time lucky on the Arab Billionaire front - we've written to all the rich Arabs we can think of. Oh, and Mr Chainrai has stabilised the situation. HMRC: What, in the same way the Mary Rose has been stabilised? Goddbye.

For the Guarantee to be effective, there has to be some form of "Commercial Consideration", such as parent and subsidairy. It could apply if there was a trading relationship -I fully expect Grosvenor's lawyers to have checked this before accepting the guarantee.

I have to say it's extremely unlikely that any proper Saudi Billionaire (as opposed to Al-Fahim and Al-Mirage) will just stump up tens of millions without going through proper due dilligence - they are not known for just throwing money at investments. Pompey are going down. It's all very well saying they'll get the parachure payments, but they will need every penny of that to survive next season with their cost base - or to pay players off their huge contracts, plus bonuses etc. You would want to look, in depth at every players contract. You would want to understand the nature of all their football, and general debts. You would want to know how much you need to invest to make any kind of return. There is no way the sales of the keeper and the other chap to Spurs will have covered January's salaries, the debts due to Chelsea and Watford, the majority of the funds owed to Chainrai, and left them with enough to meet their obligations to the end of the season. Then there's Lens, HMRC and Sol - thats another £15m. So it'll cost someone in the region of £60/£70m to buy what is effectively a Championship club. Is Newcastle still for sale? If Chairai wants to keep them going he will need to make a significant payment to HMRC and convince them that the Club can meet any payment schedule - they have no means of even meeting February's salaries. No Administrator will take them on with their lack of funds and saleable assets to the end of the season, so a CVA is the only alternative to Winding UP. If they go the CVA route, then Chainrai, as a secured creditor will probably stay outside any CVA. A CVA has to be agreed by 70% of the participating Creditors (if memory serves) - probably requiring both HMRC and Gheydamack Jnrs Trust fund to agree to the CVA. So whoever buys the club will still have whatever debts are left under the CVA, plus the £25m football debts, plus whatever is needed to pay back Chainrai as a bare minimum. Your still talking around £40m for a Championship club with no infrastructure. The debts would need to be cleared as they cannot fund them form cashflow on crowds of 12k max in the Championship. I don't want them to fold - look at the excitement being generated this week - but I just can't see a way out for them.

AP: I also need a powerful midefielder. get me Puncheon, Danns or Stock NC: Ok leave it to me to get the best deal within the available budget. AP: Oh, and can we add one of the leagues leading scorers to the list? NC: Sure, anyone in mind?

AP: I need two new centre halves - choose from Fonte, Seaborne & Ward NC: OK leave it to me to do the best deal within the available budget.

Promoyed is my new favourite word.

Doubtless Kaboul is entitled to a cut, as he didn't ask for a move, and probabaly bonuses written into his contract. Oh, and some to be paid into a certain offshore a/c.............

Useful information here on winding-up petitions and Administration.

Surely to go into Administration, there has to be something to Administer. If they don't do it this side of the transfer window, then any Administrator will have huge costs and very little income between now and the end of the season. Unless they are willing to take on a debt (unlikely), Adminstration is not an option - no Administrator will take them on. They either need funds from Player sales, or other ahem..... short term funding from Chenrai/Gheydamak which will enable them to meet their bills as they fall due. Chances are they are illiquid and insolvent - probably questions should be asked now about the ability of the Directors to continue to trade the business. If they fail to make sufficient player sales, they will probably have no option other than to wind-up. I really don't want it to happen, but surely it's looking increasingly likely. Even if they sell Kaboul for net £6.5m, that doesnt even cover HMRC. The there's last months' short term loan to repay, Gheydamak Jr £9m, this months Salary Bill circa £3m and on and on and on......

Pompey draw a potentially lucrative 5th Round FA Cup tie at SMS, only to be wound up 3 days before.

I think we have a winner: http://www.saintsweb.co.uk/forum/showpost.php?p=577915&postcount=8223

It would be like buying a £100k house that comes with a £400k mortgage already on it, before you have to knock it down and spend £1m building the new one - on a council estate.

Yes, but what happens to Harry the Twitch? Chapter two......