Portsmouth City Company Voluntary Arrangement Proposals Attacked

10 June 2010

Griffins the interesting insolvency firm that seems to pick over the carcasses of other insolvency firm's work to try and earn money, has criticised the administrator's proposals for a CVA for Portsmouth City.Credit Today reports that an interesting spat has developed with Andrew Androniku (one of the the joint administrators) criticising Griffin's sums. They claim that Griffins forecasts are wrong and that Griffins' claim that a CVA could get 99p in the £1 for City's creditors was disingenuous, because they have included VAT in profit forecasts.In any event, the creditors meeting for Portsmouth's CVA promises to be a stormy affair, if HMRC votes against the proposals for a CVA, as it has said it will, then there is a chance of the CVA being rejected.Watch the news if that happens, this could lead to a rejected CVA, a sale or liquidation, plus a big points penalties for Portsmouth (as happened to Leeds Utd) and the club face starting the season on minus 15-20 points.All this will be slap bang in the middle of the World Cup.