A challenge by HM Revenue & Customs (HMRC) to the administration of premier league football club Portsmouth FC has been adjourned for two weeks in order for the club to answer concerns over the administration.
Adjourning the case until the week beginning 15 March, Norris J said: “A shadow has been cast over the existing appointment of the administrators and that shadow should be removed as quickly and cheaply as possible.”
Earlier, Gregory Mitchell QC, for HMRC, had said that although, “in principle”, his client supports the administration, it wants answers to its “necessary and reasonable” questions before it will abandon its own winding-up petition against the club.
He said that HMRC was concerned as to whether the administrators had been validly appointed and called for a full investigation into transactions between the club and its owner Balram Chainrai in order to ensure that the administrators will act with complete independence.
He also raised concerns over whether an administration was feasible as even in administration the club will need £7m to take it to the end of March and £14m to the end of May.
“We say that if there is no proper evidence of funds to meet the club’s needs, there is a real danger that the administration will fail to achieve its proper purpose,” he said.
Simon Barker QC, for the administrator, a company connected to Chainrai was providing £15m, which would keep the club afloat until the end of the season.
Barker said: “There is no reason to impugn the conduct of these administrators. There is no reason why the court should have any doubts about their appointment and independence.
“The administrators want the air cleared in a way that allows them to get on with their task,” he said.
