Portsmouth on the brink of collapse
Posted Saturday, October 23, 2010 by theguardian.com
Portsmouth moved to the brink of oblivion last night after previous owner Alexandre Gaydamak demanded £2.5million that the club cannot afford.
Pompey’s match at Hull today will go ahead as planned but it could be the last in the 112-year history of the famous old club.
They seemed to be on the verge of salvation after finding a way out of the £130m debts which threatened for six months to submerge the former league and FA Cup winners.
After going into administration at the end of February, Portsmouth agreed a CVA – a creditors’ voluntary arrangement in which every creditor was paid back one pound in every five.
Just when it looked certain they would come out of administration and also escape a transfer embargo, Franco-Russian Gaydamak demanded a Paris meeting near his home to demand the extra cash.
Portsmouth administrator Andrew Andronikou flew to speak to Gaydamak, who was owed a fifth of his £28m debt under the terms of the CVA, only to discover he wanted more money.
The problem centres around £2.5m Portsmouth borrowed at the height of their cash crisis from Barclays. Gaydamak paid the bankers and now wants his money back.
Potential new owner Hong Kong-based Balram Chainrai, who put the club into administration, is refusing to find the extra cash. But, as a secured creditor, Gaydamak must agree to the CVA for it to go ahead legally.
Photos
More»Meet sexy model Daniella Chavez
Sunday May 19 2024Former Barcelona star's Wag reveals incredible 'sex deal'
Sunday May 19 2024'World Cup's sexiest fan' reveals she WILL be heading...
Saturday May 18 2024
Your Say