It is now estimated at £135 million.
This on a day when the Greece was wracked by violent protests against their Parliament approving of austerity measures that would slash pensions and the pay of government workers to meet an IMF imposed pre-condition to secure a £95 billion bailout. Greece has been living beyond their means and is in essence, bankrupt.
Pompey however has taken its first few steps out of administration. First in line to receive their share of money are the secured creditors like the clubs still owed transfer money and former players who have not been paid their wages. Balram Chainrai will also receive back all his money.
The problem lies with the unsecured creditors who will receive reduced amounts that are settled on through a CVA (Company Voluntary Arrangement). 75% of those unsecured creditors need to agree to the CVA before it is implemented. Amongst them Sacha Gaydamak, Pompey’s original owner before their slide into administration began and the HMRC.
The present holding company, the Portsmouth City Football Club will be dissolved in time and the CVA and club assets will be transferred to a new company. The funding for the CVA will come from player transfers, reduced player wages, club revenues, and parachute payments.