Portsmouth CVA approved but only just

16 June 2010

See the BBC report here

news.bbc.co.uk/sport1/hi/football/teams/p/portsmouth/8746162.stm

"Needing the support of those owed at least 75% of the unsecured debt, Pompey's proposed Company Voluntary Agreement (CVA) (sic) got 81.3% of the vote.

The administrator will now press on with the plan to repay creditors at least 20p in the pound over five years.

The only real opposition to the CVA - a requisite for clubs hoping to avoid further points penalties - came from HM Revenue and Customs (HMRC), which has 28 days to appeal against the decision.

Any hopes of success HMRC might harbour will depend on its ability to convince the courts the public purse is owed considerably more than the £24m Pompey's administrators claim".

Had HMRC voted for its full £37m the CVA would have been rejected. It will be interesting to see if the HMRC Voluntary Arrangement Service mount a section 6 action (s6 Insolvency Act 1986) citing a material irregularity?

It has 28 days to do so.