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Extreme Football Forum  |  Football Forums  |  NPower Championship  |  Topic: Portsmouth 'likely to close down'

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Portsmouth 'likely to close down'

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« on: October 23, 2010, 04:31:35 AM »



Quote
BBC

Portsmouth say they are likely to fold after talks with former owner and key creditor Sacha Gaydamak broke down.

The club claim that Gaydamak demanded an upfront cash payment to allow Pompey to exit administration and thereby endangered their ability to trade.

"It appears likely that the club will now be closed down and liquidated by the administrators," said Pompey.

But administrator Andrew Andronikou insisted weekend talks could lead to a "satisfactory conclusion".

Meanwhile, a Football League spokesman insisted Pompey's Championship game at Hull on Saturday would go ahead, explaining: "The league is continuing to monitor the situation."

The club have been in a precarious position since the most recent plan to exit administration was vetoed on 14 October by the Football League.

The club initially went into administration in February with debts of about £120m and received a nine-point penalty that made their relegation to the Championship almost inevitable.

By that point Gaydamak, who was Portsmouth's owner between 2006 and 2009, had sold the club to Sulaiman Al Fahim.

However he remains one of Portsmouth's creditors, with his apparent demand for an upfront payment drawing an angry response from the club.

"Despite the new owners fulfilling all the requirements of the Football League and the creditors, and agreeing and signing up to the required terms of the purchase of the club, at the 11th hour the goalposts have been moved by Gaydamak," read a Pompey statement.

"It is neither in the interests of the club nor its unsecured creditors for such a ransom payment to be made, particularly where the payment is being demanded by one of the authors of the club's current circumstances."

Andronikou added: "We've reached a serious impasse in our negotiations with Sacha Gaydamak and until we can reach agreement with him there is a significant risk that the club will have to be liquidated.

"We have agreed terms with every other party involved but there is now this new obstacle that must be cleared. We are trying to get Sacha Gaydamak to see sense.

"I'm hopeful that within the next 24 hours we can get the parties around the table and we can renegotiate to everyone's satisfaction."

As well as Barclays, Gaydamak and another former owner Balram Chainrai are the club's main secured creditors.

Gaydamak has claimed he has secured debt of more than £2.2m, of which he has asked for an unspecified amount upfront.

But lawyer Guy Thomas believes the latest development is likely to be a negotiating tactic.


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« Reply #1 on: October 23, 2010, 10:17:54 AM »

Administrator Andrew Andronikou gives Portsmouth hope

http://news.bbc.co.uk/sport1/hi/football/teams/p/portsmouth/9120575.stm

Portsmouth's administrator is hopeful creditor Alexandre Gaydamak will back down from his demands and prevent the stricken club going into liquidation.

The club said on Friday that Gaydamak demanded an upfront payment to allow Pompey to exit administration, which endangered their ability to trade.

But administrator Andrew Andronikou is still hopeful a deal can be reached between the club and Gaydamak.

"I think common sense will prevail," Andronikou told BBC Radio 5 live.

Gaydamak, Barclays Banks and another former owner, Balram Chainrai, are the club's main secured creditors.

Gaydamak says he has secured debt of more than £2.2m, and he has asked for an unspecified amount of that to be paid up front.

After talks broke down with Gaydamak, Portsmouth announced they were likely to fold.

Andronikou hopes the threat of going out of business will serve as a "wake-up call" to all the parties involved, but added that a deal would have to be reached within the next two days.

"I think all parties will come to the table this weekend - but it has to be this weekend," said Andronikou.

"Yesterday evening's [Friday] activities were really a wake-up call for everybody to say 'look, we just can't sit here whilst everybody else finesses their position. It is about coming to the table and cutting a deal'.

"I'm waiting to hear from Gaydamak or his representatives and I've made it publicly known I'm available 24/7 to get this done.

"Next time I speak to the press I want to be announcing we're out of administration."

Portsmouth's debt at one point stood at around £120m before they entered administration last season and were ultimately relegated.

Andronikou confirmed a deal worth 20p in the pound to unsecured creditors had been agreed, but he knows the club could still go into liquidation despite being close to securing their future.

He said: "I'm sure that once we do get round the table this matter will be resolved rather quickly and rather than talking about liquidation we'll be talking about exiting administration.

"All other parties are satisfied. We have documents ready to go. We are as close to coming out of administration as to liquidation."

Andronikou admitted "a very unusual situation" had been "taken to the brink".

"We've been talking to all parties concerned to explain to them that we are in this strange situation where we haven't got sufficient working capital ourselves, although we can see it and it is available from the purchaser [Balram Chainrai] to continue paying the club," he said.

"But we need assistance from all parties - the relevant football authorities, the purchaser and the secured creditor - to sit down and compromise.

"We've got the assistance of all parties but one.

"We've put together proposals that will mitigate the situation for lots of creditors. We need his support - if the club closes there'll be nothing for anybody, including Mr Gaydamak."

Andronikou explained the proposal on the table from the club, saying: "He'll start having payment over the next five years along with all other creditors.

"[The disagreement] is effectively timing and, I would imagine, from his point of view, ensuring that he is actually secured, and we have used our best endeavours to get him as secured as possible.

"From where we are today he will be paid first. The point is that we've all got to compromise to move forward."

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« Reply #2 on: October 24, 2010, 07:31:03 AM »

5live say that they are out of admin. and have been sold.


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« Reply #3 on: October 24, 2010, 08:44:02 AM »

I wonder how long they are out of the shite for this time  huh

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« Reply #4 on: October 24, 2010, 08:48:59 AM »

About as long as it takes Gazza to get nicked again.

 laugh   wink


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