Fairytale Of New York Pogues/Kirsty MacColl
Looks like Pompey are a step closer to coming out of administration after former owner Balram Chainrai's offer to take over at Fratton Park again was accepted.
Today (Monday 25th June), the creditors are meeting to decide whether his is the best option to take over.
Trevor Birch, a partner at PKF and the joint administrator of Portsmouth Football Club, sent proposals to the club's creditors earlier this month for a Company Voluntary Arrangement (CVA).
He said: "We have written to all of the club's creditors to inform them of the CVA proposals, which are based on an offer made by Balram Chainrai's Portpin.
"We believe that these proposals are likely to give the best possible deal for creditors and provide the most realistic opportunity for protecting the club's financial position going forward and avoid liquidation.
"There has been a considerable amount of interest in the club over the past few months but nobody has been able to prove their ability and willingness to complete on a purchase other than Portpin."
Portpin proposes offering creditors £500,000 in cash as an upfront payment. In addition, Portpin will settle in full the club's debts to charities, small local businesses owed less than £2,500 and part-time club employees who are owed wages prior to the administration and who worked for the club during administration. A further £500,000 will be offered to creditors if Portsmouth returns to the Premier League within five years.
As a result, PKF estimates that unsecured creditors will initially receive approximately 2p in the pound under the terms of the CVA.
Birch continued: "If the CVA is accepted, it will pave the way for Portpin to acquire the club before the start of next season and moving the club closer to leaving administration and returning to stability."