Date 26 May 2010
Publication BBC Online
Guy Thomas provides expert opinion on the latest news coming out of Fratton Park
Guy Thomas warned that even if Portsmouth emerged from administration their fans could still face some turbulent times over the next five years.
"At the creditors meeting on 6 May it emerged that HMRC would prefer that any CVA the creditors approve should last just six months, during which the CVA supervisors would seek to "sell" the club to a new company," said Thomas, a lawyer with SA Law LLP, who has written extensively on Pompey's financial problems.
"That would enable Pompey to be run under new ownership, while the 'old club's' conduct in the run-up to administration would be investigated by a liquidator.
"As things stand, without new funding or a different approach, the alternative will be a long drawn-out process lasting up to five years.
"The creditors of Pompey might also want to look at Swindon's experience in a similar process," added Thomas.
"There a similar CVA lasted five years but came close to failing when the club struggled to meet a final year 'balloon' payment." Source BBC Online
Click here to read the full report