HMRC accept Portsmouth administration

Stephen Howard,Pa
Tuesday 16 March 2010 12:48 GMT
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HM Revenue and Customs today officially dropped its challenge over Portsmouth's move into administration and said it "offers the best chance of the club surviving".

It means that the crisis football club, which owes £65 million, will not face a winding up petition.

Gregory Mitchell QC, representing HMRC, told High Court judge Mr Justice Lewison that there would now be a meeting of creditors, including HMRC, which took action because the club owed more than £12 million in unpaid VAT and PAYE.

He said Portsmouth had now supplied details about its financial affairs and after a meeting with the administrators, HMRC had been reassured about their independence.

"We take the view that the continuation of the administration offers the best chance of the club surviving and of a return to the creditors, including HMRC."

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