Former Portsmouth Owner Balu Chainrai Bids to Buy Club

Former Portsmouth owner Balu Chainrai has submitted a bid to buy back the club, which could bring them out of administration within the next six weeks.

Portsmouth were relegated from the Championship this season and will play their football in League One but the South Coast club have bigger worries on their mind by looking for a new owner since entering administration in February for the second time in as many years.

And joint administrator Trevor Birch, of PFK Accountants & business advisers, has now revealed that Chainrai’s Portpin are the only group to have proposed terms for a Company Voluntary Arrangement.

Birch said: “PKF has not received bids from any other potential buyers and we do not expect any new bidders to emerge before the club runs out of money.

“The Supporters’ Trust is working hard to make a proposal but as yet is not in a funded position to make a bid.

“We’ve made it clear from the start that a new owner would need to demonstrate that it cannot only fund a CVA that is acceptable to creditors, but also cover the club’s ongoing operating losses.

“Only Portpin has been able to give us the necessary assurances that the funding will be in place. This is important because at some stage it will have to give The Football League those assurances too.

Portpin has made an offer to buy the club. The offer will form the basis of a proposal for a CVA that, in the circumstances, is likely to give the best possible deal for creditors of Portsmouth Football Club (2010) Ltd and provide the most realistic opportunity for protecting the club’s financial position going forward and avoid liquidation.

“We are aiming to send details of the proposed CVA to creditors next week. Creditors will then get an opportunity to vote on the proposals at a meeting to be scheduled for early June. If the CVA is accepted, it will pave the way for Portpin to acquire the club by early July.

“However, there is still a lot to do before we get to that stage and we are not taking anything for granted. PKF will now work together with Portpin to finalise the business plan to satisfy the Football League that Portsmouth Football Club has a sustainable long-term future.

“This is still likely to involve further cost-saving measures including player sales and the renegotiation of contracts with the top earners to bring the club’s costs in line with the League One average.

“Portpin management and PKF have been working with the manager Michael Appleton to make preparations to ensure that the club is in the best possible position for the season ahead. Portpin has full trust in Michael’s ability to be a successful manager.

“Nobody wants to see this much-loved club collapse into either liquidation or administration again so it essential that all parties work together to bring stability back to Fratton Park. It is the least that fans, staff and players deserve after the turbulence of the past few years.”

Chainrai, owner of Portpin, said: “I always said I would not let the club be liquidated. I’m a businessman but I realise that the club will only have value if it is successful. I now want to turn things around at Portsmouth Football Club and see the club regain its rightful position.

“The success of this goal can only be achieved if all parties with a vested interest in the club’s business work together.

“Let’s not be under any illusions though: we are planning to take on a club with severe financial problems that cannot be fixed overnight.

“I don’t have a magic wand but many important elements – a proud history, passionate supporters and one of the country’s top managers – are already in place and provide a strong platform on which we hope to build stability.

“We will work with the Football League and the PFA over the next couple of weeks to demonstrate our commitment to securing a brighter and stable future for Portsmouth Football Club.”