• Premier League

Portsmouth winding-up order suspended

ESPN staff
March 16, 2010
Portsmouth must now set up a creditors committee © Getty Images
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A High Court judge has ruled that Portsmouth's administration is valid and has suspended the club's winding-up order placed on them by HM Revenue & Customs.

The Inland Revenue appeared before the Royal Courts of Justice in London and said it was now satisfied current owner Balram Chainrai had the right to put the club into administration.

Pompey have a nine-point deduction in the Premier League hanging over them for entering voluntary administration but the validity of Andrew Andronikou taking charge of their affairs was challenged by HMRC, before it was revealed that they were ready to drop the legal claim on March 11.

Mr Justice Kim Lewison has now ruled that the administration is valid, and the HMRC has agreed to suspend the winding-up petition. However, Pompey's administration team must now set up a creditors committee within ten days and pay HRMC's costs of going to court.

Gregory Mitchell QC said: ''At a meeting held between administrators and HMRC on March 9 we confirmed that we had received documents which satisfy us at HMRC that the administration is valid and we also received reassurance of the administrator's independence. We take the view that this administration offers the best chance of the club's survival and the best possibility of a return of cash for insecure creditors which include the HMRC.''

After the hearing, joint administrator Peter Kubik told the Portsmouth News:' 'We are very happy about what has been agreed at court today. It means we can now progress with positive meetings with the Premier League which are due to take place tomorrow.''

© ESPN Sports Media Ltd.
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