Tax authority drops legal claim against Portsmouth - 7M sport

Tax authority drops legal claim against Portsmouth

Posted Friday, March 12, 2010 by AP

LONDON (AP)—Portsmouth’s immediate future was safeguarded Thursday after Britain’s tax authority dropped its legal challenge against the Premier League club entering a form of bankruptcy protection.

The customs and revenue service had been pursuing a winding-up order after questioning the validity of Andrew Andronikou being appointed the administrator tasked with restructuring the club’s finances.

But while dropping its challenge, the service questioned the lack of detail of financial affairs made available to them, as well as having “concerns around the relationships of various parties.”

With Portsmouth in financial administration, the Premier League is likely to vote to dock the bottom-place club nine points.

Portsmouth’s debts have reached 86 million pounds ($129 million) less than two years after winning the FA Cup, while 85 members of the club’s staff were fired Wednesday as part of moves to avoid the threat of closure.

“HMRC (Her Majesty’s Revenue and Customs) would expect that now that the issue of validity is no longer in question, the administrator will be able to make early and real progress with the administration in order to get the best and most equitable return for all creditors,” HMRC said in a statement.

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