6 Aug 2010Portsmouth win crucial High Court battle

Football Clubs News | Football Finance News

Portsmouth football fans are celebrating after a High Court judge found in the club's favour and rejected a complaint HM Revenue and Customs (HMRC) over a proposed company voluntary agreement (CVA).

At the High Court yesterday (August 5th 2010), Portsmouth were given the green light to proceed with the arrangement - which will see creditors repaid 20p in the pound - and former owner Balram Chainrai will again take control at Fratton Park.

"None of the heads of attack by HMRC amount to unfair prejudice, nor have they been materially affected," said Mr Justice Mann. "Mr Chainrai was the owner of the club at the time of its demise and he is the only possible new owner now."

The judge also accepted Portsmouth's contention that blocking the CVA would almost certainly force the south coast side into eventual liquidation.

HMRC has voiced serious dissatisfaction with existing regulations relating to the protection of football creditors and could yet opt to take separate legal action on the issue.

Written by Paul Roberts

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