Often Partisan

BIH Call in Receivers

Announcements made by BIH and Birmingham City today have confirmed that Birmingham International Holdings have appointed Ernst and Young as receivers to the company. The appointment has NOT been made due to the company going into liquidation; rather as a response to the continued and prolonged civil war that has plagued the boardroom over the past few months.

The announcement confirms that a meeting was held on Saturday which five BIH Directors attended to pass a resolution to instruct the legal advisors of the company to consider the appointment of receivers. The company applied to the Court of First Instance on Monday for an order to appoint receivers which was granted the same day.

What does this mean? Are BIH going bust? Are BCFC going bust?

The most important thing to remember here is this isn’t about either BIH or the club going into liquidation – this is about the directors of the company realising that they cannot continue to run the company in it’s current fashion and to bring in some outside help. The club is financially stable and will continue to be so.

From my perspective, this is quite a bold but brilliant tactic. What it effectively does is to put the company into the control of people who will act dispassionately, for the benefit of ALL BIH shareholders – in other words, it cuts out the personal agendas on the table. From my sources in HK I hear that both Pannu and Carson went crazy trying to block this from happening because it properly puts them both into their place. It means that anything being withheld from the regulators will now be forcibly coughed up; that people will no longer be able to block actions by force of personality alone and that things that might be blocking the company from moving forwards will no longer be in place. For those who want a sale of the club (like myself), this is great news.

As I understand it, the receivers will have to act to do what they can to run the company properly. That means for the first time ever, logic is going to come into play – and the logical thing for the company to do would be to sell BCFC. Obviously, there have been things stopping that – the regulators insisting that they cannot keep their listing without another business being in place and I’m not entirely sure how the receivers will be able to deal with that. What I think it will come down to is the value of the listing in the eyes of the receivers and how they wish to deal with that – but again, I will stress – this will be a decision now based on logic rather than the whim of a imprisoned hairdresser.

Are we going to get docked ten points?

One would hope not, but with the Football League you can never be quite sure. I have contacted them to ask this question but I have yet to receive a response. However, from what I do know the FL are very much aware of what is going on at St Andrews, and are very much aware of the personalities involved. They’ll have seen the finances on a monthly basis and I believe will be sympathetic to what has gone on; therefore I think it’s unlikely we will be docked points but it does remain a possibility.

So is this the beginning of the end?

I think this has to be the endgame now. Bringing in the receivers is a big, big call and is basically the last chance saloon for the business. It’s an admission from the directors that they cannot run the firm any further in it’s current state and that they need help. Ernst and Young won’t be cheap – and I don’t believe that they will be sentimental either; although the directors have to work with them I expect there to be changes at the top fairly quickly as wages are cut and roles are made redundant.

It seems weird to be happy about this but I am – this is something that makes sense after long periods of infighting. It might be we need every point on the board we can get going forwards but the long term future got a whole lot better.

Edit
I received an email from the Football League this afternoon confirming that they were seeking a meeting with the club and the receivers as soon as possible and that they would make no further comment at this point.

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134 Responses to “BIH Call in Receivers”

  • Daz says:

    What do you think are the chances of going into administration due to this, because isn’t the club a separate business (Subsidiary of BIH) which means if they don’t want the club to go under they can sign a divorce of ownership and control. I think its very bad news

  • Bluenosegaz says:

    They have just had some financial expert on WM and he was saying it’s good news for blues and they should go up for sale let’s hope he’s right though we have had that many false dawns at blues no doubt nothing will come of this.

  • RichardM says:

    Wow, didn’t see that coming, but has to be good news in the Long run. In the short run however, I believe in the saying “Hope for the best but plan for the worst”, so hope GR and the players will now adapt the mentality that we will be docked 10, and are very much still in the relegation battle.

    • StaffsBlue says:

      I hope someone has informed Rowett of that, or he’s had the good sense to figure it out for himself. The sooner we reach the minimum points total needed, the better. We can’t afford to relax until then.

  • BucharestBlue says:

    Daniel, I’m with you – I think (at least I think I do…) that this is great news and the beginning of the end. IF E&Y can function as you would expect an independent company in this role to do, they will try to recoup the best price they can (realistically, not what CY wants) and for these funds to be distributed equitably amongst firstly any creditors, then the shareholders….lets see..

  • Eddie says:

    Hopefully sorted for fresh start next season,
    easy six points coming off Villa next year should help our top six finish

    • TR7 says:

      In your dreams ( and mine ! ) Villa will stay up , quite easily , and probably get to Wembley as well ……..

  • Adam says:

    Dan

    Will the receivers not have to act in the best interests of BIH though? And that would mean, in the cold light of day, if the listing itself is worth £10m or whatever, they will have to maximise that/take steps to preserve the listing (which won’t include the sale of the club, most likely)?

    Defer to your knowledge, just a first thought!

  • bluearmyfaction says:

    Remember Yes Minister. “Never call a public enquiry unless you know what the answer is going to be.”

    I wonder if BIHL have the endgame in sight and E&Y are the instrument to deliver it. Surely they would not have done so otherwise. Because E&Y are not stupid and could come up with a number of alternative solutions. If they want E&Y to pick a card, they’ve got to reduce the deck to 1.

  • Art says:

    Great article Dan and the saga continues.

    I can see the sense in this move but if and when the club is ready to be sold how dependentent will the sale be on Carson, given that he’s still a major shareholder.

    Could he scupper any potential sale.

  • Oldbluenose says:

    Just prior to this blog, i had asked the question that THIS blog has just answered,?.

    Without getting carried away with euphoria, It is uplifting to think that AT LAST, there may be hope,!!.

  • John Blue says:

    Just seen a headline saying we’d called in the receivers…as always i came here first to get the low down as opposed to a tabloid sensational version. Great article and lets hope we can now move forward. Lets get right behind the lads tomorrow night as every point now will be crucial. KRO!

  • John says:

    Great piece Dan,

    After the initial shock I too think this can only be good news. I also think the timing is quite interesting. Had this come a couple of weeks back, the clubs stance during the transfer window would have been quite different, with the receivers most likely requiring assets such as Gray to be sold.

    it’s obviously a bold move on behalf of the other board members and hopefully it will lead to the sale of the club sooner rather than later. KRO.

  • bluedean1875 says:

    this is the best news for the sale of the club. As a member of the Blues Trust I would also say they would be ecstatic too. hopefully Potential buyers will now be able to get the club at a sensible cost. I dont think there is any chance of points deducted as we are paying bills and can fulfill fixtures. Its the parent company that are in trouble NOT BCFC

  • DoctorD says:

    Well Daniel, what did I say after your post yesterday called “Quiet time”– I said it was probably the calm before the storm!? Called that one right didn’t I.

    Thanks for putting it into perspective. I have to say my first reaction when I heard it in the main news bulletin on Radio Five Live was “Oh shit”. But as you say this could be great news.

  • Mineheadblue says:

    THANK YOU GOD!!!!!!!! (I HOPE)

  • the duchess says:

    This is the best news I have seen in ages!!! They are going… let’s be honest Dan anyone with a business knowledge knows what’s coming! I just hope now E&Y find some respectable owners…. get in there!!!

  • gerard says:

    total agreement- brilliant tactics- Ernst Young will do everything by the book- will not be influenced by anyone but no doubt Yeung and Pannu who must be spitting chips will try everything on the surface that is legal to undermine Ernst and Young and below the surface? but it will make no difference- a little short term pain for long term gain- my only worry is that if the can of worms is fully opened and eventually emptied once and for all- and a sale is concluded Ernst Young will only look at on a pure financial basis and we could end up back were we started with the current owners, new owners same agenda as Yeung and co ? I also think our manager will be watching quietly as if he has to go into next season full of uncertainty he may re-think his options and future -if he cannot be guaranteed funds to forward the clubs future., finally I hope and pray that Yeung and Pannu get what they deserve and are dealt with accordingly – as we have suffered so should they if there is any justice left.

  • the Francis Fake says:

    I am very hopeful that this development undermines Carson’s influence over the club. I can’t see a way back. The chance of a sale over the next few months surely must be a distinct possibility.

  • Plod says:

    Nutshell: Pavlakis and the rest of the good BIHL directors are taking on Pannu for the good of the company and the club. Blues are not going bust. A very good move

  • gerard says:

    re sale of Gray -that did not happen in January thank Panos for that as if it had been a Pannu decision he would have gone to Bournemouth for £2 million up front-no choice- I think this was another way of telling Pannu and Yeung to get stuffed -although we probably needed the monies -we do not need them ( Pannu and Yeung )

  • glyn rees says:

    I would take a 10pts deduction and or relegation just to get rid of these clowns. Thank you pp2 Keep right on 4 ever

  • Tony E says:

    I really hope this is good news at last, have to admit the timing is clever with the transfer window closed, if it had happened earlier Gray would now be a Bournemouth player.

  • Ginger says:

    Master stroke. Just a matter of time before we all get what we want chaps.

  • beegeeblueboy says:

    Hey Dan. What were saying about the quiet life? :-)

  • TimB says:

    Just for a point of reference – Southampton were docked 10 points when their parent company went into administration a few years back.

    I’m not 100% sure if the rules have changed but the precedent is there IMO – We will be docked 10 points at least before the end of this season even though ‘BCFC’ the club is a going concern. BIHL owns the club and are in administration you can’t escape that fact and I don’t think the FL have the capability to be ‘sympathetic’ – the rules are there for a reason and we have broken them.

    On the plus side, the end game could be in sight – short term gain for long term gain. My favourite away days were in the old Division 3 with Barry Fry at the helm!

    • almajir says:

      Administration /= receivership though. Key difference – BIH ARE NOT in administration.

      • Skimmer says:

        Thanks for clarifying this point Almajir. It very important for all bluenoses to undertsand that the BIHL are not in administration. This is an entirely voluntary move by the board of BIHL and as you say, it would be difficult for the FL to sanction the club (at this stage) by docking us 10pts !

        • TimB says:

          Fair enough, it’s a confusing situation! I’m normally quite optimistic but just have always had this feeling at some point we will be deducted points. Hopefully I’m wrong! :)

    • chris says:

      Southampton’s affairs were inextricably linked to the holding company and the League took the view that the administrator had been appointed relating to issues at the club, so this is different to BCFC’s situation, I HOPE !

  • bluenoseneil says:

    Light at the end of a fairly long tunnel, it would seem.

    Thankfully we are able to now let E & Y get on with the business of ‘cleaning house’ and Rowett and the boys can concentrate on solidifying our position in this league.

    Roll on next season, Villa Home and Away and a renewed sense of hope all round!!

    KRO

  • BlueStorm says:

    Cracking open a packet of McCoys in celebration of this news. Anything that changes the status quo that’s been in existence for so long is a good thing in my opinion.

  • lee says:

    Absolutely brilliant move by bihl, I would absolutely love to see fat cakes face right now, I bet his eyes nearly popped out whilst almost having a coronary

  • Bluenosesol says:

    Wonder who appointed E&Y? I lost my job when our company folded in 2009 and am still waiting for E&Y and their buddies to cough up my compensation (Might be enough to but a Balti Pie) The monies charged by E&Y to date for their part in the admin would buy the Blues many times over. No they aint cheap, those little boys have got their Ferrari’s to run!! KRO!!

  • Adiedee says:

    I would think that you are handing over control of most decisions to the Receivers in this case “voluntarily”. Therefore any powers any directors had previously have been drastically reduced. The options from what I have read (mostly UK stuff), the Receivers are there to get the most money for the creditors, thus sale of Assets, although they can try and turn a company around so that it can continue to be run by the current owners. In this case as the only real Asset of the company is BCFC, it would in my (blue nose) view seem that the club will be sold and the Hong Kong stock listing can go hang. although of course it that is of such financial importance to the value obtainable maybe they can not sell BCFC?

    I am probably talking out of my ……….. Just my thoughts!

  • nicko says:

    paladini wrey they will all come out of the back ground now be intresting if there will be an auction for the club lets hope it is goon news thanks dan

  • Oldbluenose says:

    2nd time of posting, [ The 1st, has dissapeared,? ].

    If this latest H,K, episode indicates some hope of a sale for our club,?. — I give thanks, and call for 3, cheers,!!.

    Early days yet, but optimism is in the air.

  • Bluedad says:

    Thank you Dan excellent piece of journalism.
    I also think the timing had a lot to do with the CY appeal date.
    I echo Richard M, lets plan for 10pt deduction and ensure it matters not. so come on bluenoses lets get STans bulging with noise.

  • Mickey07 says:

    Unlucky pannu…love it.

  • RednalBlue says:

    Ok, we’re all excited and seeing a clear and bright future looming ahead. Let’s think about what/who we would like as new owners as I am sure this could easily open us up to many possible bidders as Ernst and Young will sell at what they consider a reasonable price.
    As I see it, idealy we want Blues fans as owners with funds to move us forward.
    “Uncle” Jack Wiseman was affectionally known as Mr Blues and those that knew him will also know the family connection with the club through 3 generations.
    Michael Wiseman I am sure would make a fine chairman.
    Next we need to add the fans with passion and a little money or at least means to get the money.
    So let’s throw in Trevor Francis, Jasper Carrott, Jeff Lynne. plus others.
    Come on and put your own suggestions forward.
    I’m sure this news today has put a smile on so many faces.
    KRO. SOTV.
    Sam.

    • chris says:

      sorry Sam can’t agree.
      why should any rich blues fans that you mentioned put their money in to a bottomless pit.
      none of them are rich enough to put 2 or 3 million in per season, they would lose most of their money in ten years.
      the fans need to realise that the only real way to grow the team is a good manager and gates of 24000 which would add about 3.5 million to the coffers for higher waged/quality players.
      you need a billionaire like at Bournemouth, QPR, Watford, Leicester or decent crowds like Norwich, Leicester, Wolves and Derby or a good manager with a supportive board like Burnley, Brentford, Ipswich, Middlesborough.

  • Charles says:

    I know what the club are saying and I can see why they are saying it but if you read the rules (part c) below – receivership would appear to be an ‘Insolvency Event’

    http://www.football-league.co.uk/global/section1.aspx

    ‘Insolvency Event’ refers to any one of the following:

    (a) entering into a Company Voluntary Arrangement pursuant to Part 1 of the Insolvency Act, a Scheme of Arrangement with creditors under Part 26 of the 2006 Act, or any compromise agreement with its creditors as a whole;
    (b) the lodging of a Notice of Intention to Appoint an Administrator or Notice of Appointment of an Administrator at the Court in accordance with paragraph 26 or paragraph 29 of Schedule B1 to the Insolvency Act, an application to the Court for an Administration Order under paragraph 12 of Schedule B1 to the Insolvency Act (other than paragraph 12(1)(c)) or where an Administrator is appointed or an Administration Order is made (‘Administrator’ and ‘Administration Order’ having the meanings attributed to them respectively by paragraphs 1 and 10 of Schedule B1 to the Insolvency Act);
    (c) an Administrative Receiver (as defined by section 251 of the Insolvency Act), a Law of Property Act Receiver (appointed under section 109 of the Law of Property Act 1925) or any Receiver appointed by the Court under the Supreme Court Act 1981 or any other Receiver is appointed over any assets which, in the opinion of the Board is material to the Club’s ability to fulfil its obligations as a Member Club;
    (d) shareholders passing a resolution pursuant to section 84(1) of the Insolvency Act to voluntarily wind up;
    (e) a meeting of creditors is convened pursuant to section 95 or section 98 of the Insolvency Act;
    (f) a winding up order is made by the Court under section 122 of the Insolvency Act or a provisional liquidator is appointed under section 135 of the Insolvency Act;
    (g) ceasing or forming an intention to cease wholly or substantially to carry on business save for the purpose of reconstruction or amalgamation or otherwise in accordance with a scheme of proposals which have previously been submitted to and approved in writing by the Board;
    (h) being subject to any insolvency regime in any jurisdiction outside England and Wales which is analogous to the insolvency regimes detailed in paragraphs (a) to (g) above; and/or
    (i) have any proceeding or step taken or any court order in any jurisdiction made which has a substantially similar effect to any of the foregoing.

    Read more at http://www.football-league.co.uk/global/section1.aspx#ziW17CPi1athLiGp.99

    • Skimmer says:

      I see where you are coming from Charles, but the legal terms used relate to ‘insolvency’ and ‘winding up’, neither of which apply to BIHL at this stage. Therefore I suggest that the FL rules in relation to an ‘Insolvency event’ do not currently apply.

    • AC says:

      Hi Charles

      I read in section (c)
      “which, in the opinion of the Board is material to the Club’s ability to fulfil its obligations as a Member Club”

      The club have made it clear in their statement that this *does not* impact on their obligations as Member Club – they used those specific words.

    • Strettonbluenose says:

      It does look as if (c) is the one that could catch BIHL and the part open to interpretation is “in the opinion of the Board is material to the Club’s ability to fulfil its obligations as a Member Club”. So it depends on whether the Football League judge that the Blues can play all our games. I imagine that the value of BIHL depends on this judgement. So I also imagine thet Ernst and Young would do whatever they can to convince the Football League to make the right judgement, including a legal challenge if necessary.

  • Moggy says:

    Great news I think, were good enough to overcome any deduction under GR, and if it means the club can now move forward under new ownership then this day could almost be as good as Feb 27th 2011 KRO and come on you Baggies in both games

  • D Jones says:

    Good luck from a Portsmouth Fan.
    Been there got the T Shirt.

    • chris says:

      Thanks D. Jones and i’m sure you’ve got more than one ‘T’ shirt on the subject!!!!!
      Good to see that your officially debt-free, two years ahead of schedule and only 18 months after a fans’ consortium took over ownership.
      Fans consortium being the way forward for Blues too, but i doubt blues fans will be bothered to invest in their club but expect someone rich to do so.

  • rhees says:

    I stated on an op thread a week ago that GR knew something
    I feel that this really exciting news may have been the reason Demi wasn’t sold was it as he would
    be an asset in selling the club.
    Big thank you to pannos and his friends they have played a blinder here.
    Thanks Dan great reporting

  • […] Pannu, who was paid nearly £2 million in consultancy fees over a four-year period at St Andrew’s, had revealed his concerns in an email to Daniel Ivery, who runs the Often Partisan website. […]

  • Steve says:

    Love the positive spin, but the role of a receiver is to maximise the value of assets. This could be achieved in any number of ways that are not fan-friendly. Grass, greener?

    • Skimmer says:

      Such as Steve?

      • Steve says:

        Hi Skimmer, I’d be concerned about sale of property and players, reduction of wage bill, financial restructuring that creates long term issues, sale of club to another undesirable. My general point is that a dispassionate administrator has any number of unpalatable options to consider. Their role is to maximise value for shareholders and creditors.

        • RichardM says:

          True, but with the Transfer Window shut they can’t sell anyone till 1st August earliest…

          • chris says:

            the window opens on June 1st
            players can still be pushed out of the club by mutually cancelling their contracts or by arranging a sale via a pre contract agreement for June 1st.

        • Skimmer says:

          Steve, I would be thinking in a similar fashion if BIHL were in administration, but they are not. It appears to me that some people on the board of BIHL want out and want some of their money back. It appears that this faction is not concerned about the listing on the HKSE (whereas CY and PP are) and therefore the easiest and quickest way of realising their investment is to sell BCFC as a going concern. BIHL can not continue to function in the way that it has in recent months, it must change, and therefore EY have been bought in to force that change. All I can see is the club being sold as a going concern, it’s the only sensible business option. However, what does concern me is that the club will be sold to the highest bidder and therefore there will be no control over who, or what type of company buys us. Ultimately it is this that could lead to the demise (or saving) of the club.

          • Steve says:

            Well the powers would typically extend beyond sale. In practical terms, we’ve given the keys and deeds to external finance guys and are hoping for the best. Not saying that I liked the frying pan, but the fire might not be great, either, regrettably.

        • Shirley Blue says:

          I think you are absolutely right to be cautious about this. Appointing Receivors is rarely a good thing for the future of any company – it’s a last resort and they are not there to act in the best interests of the football club. Their role is to act in the best interests of the shareholders and people who are owed money by BIHL. It would indicate that there are very serious financial problems with the holding company

      • chris says:

        Receiver only interested in assets and best price so selling the ground to one person and the team to another may maximise return = Cov situation

  • Blue Lizard says:

    No need to buy the Villa Mail ..they will just copy Dans work!! (Dan keeping us informed again) I’m glad it’s coming to a head and if it has made the Fat little dung beetle Pannus life more miserable along the way then that’s great.. (my opinion ..not influenced by OP)

  • Dave Mann says:

    Keep calm and get your backsides down stans tomorrow ..this could still roll on for quite a while ! Kro

  • brightside says:

    It’s my birthday today and I don’t think presents could be much better other than news that we have actually been sold to a mulit billionaire who is a blues fan!
    KRO…..

  • ChrisG says:

    Keep an eye on the BBC, we might yet turn up on Homes under the hammer!!!!

  • Toaster says:

    I am delighted with this news. Even if we are docked ten points and pay the price of relegation the club will remain and we get new owners (who have to put a good case forward on the future of the club). New owners – what a dream!!

  • bluenose08 says:

    Dan thanks for explaining what this means to bcfc. I am sure like me you are having a little chuckle at the situation pannu and carson now find themselves in.Just a case of waiting now I think and making sure we have those extra 10pts just in case !!
    kro and delay no more.

  • Adam True Blue says:

    I need someone to explain what the receivers are capable of doing? I see peoples comments about the possibility of us having new owners, surely this involves the acquisition of shares and becoming the major share holder, which in one form or another is currently CY, can the receivers force CY to sell his majority holding or can we be somehow disconnected from Bihl, or does this just mean that whilst the receivers are running the show that the board do not have any say in the day to day running? If this is the case then what are the receivers ‘end game’ ? Can you clarify anything Dan?

  • […] Pannu, who was paid nearly £2 million in consultancy fees over a four-year period at St Andrew’s, had revealed his concerns in an email to Daniel Ivery, who runs the Often Partisan website. […]

  • Bluepengin76 says:

    Plenty of twists and turns to come over the next few months Guys. I dont expect it to be all
    plain sailing either.I hope we are entering the end game for these bench of jokers (BIH) who have been poison to the club

    To Quote Winston

    “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning”

    KRO ONWARDS AND UPWARDS!!!

  • Craig Hill says:

    I think this is excellent news all round, it takes decisions away from them knob heads pannu and yeung. Potential buyers were put off by confusing accounts and now receivers have control this will all be cleared up. A 10 point deduction maybe be looming so lets hope we can get more points on the board. Falling that relegation will surely put them two muppets out in the cold once and for all. Not fair on us supporters or the team but thats the worst case scenario. Lets hope if the club is sold then the new owners are properly vetted.

    • chris says:

      don’t hold your breath on your last sentence as Leeds went into admin under bates and he bought it again from the administrator also Portsmouth ex owner through some of their debacles but i think he still owned the ground afterwards.
      what did the FA or Football League do – nothing

  • Will says:

    Come on Mr Lynne (Time to get a consortium together and give us some Blue Skys after all the rain and get the Sun Shining)

  • gerard says:

    as Dan rightly quotes receivership-does NOT equal administration-receivership is the stage before-if Ernst and Young deem BIHL as insolvent – then the assets will be sold to clear or partially the creditors- hence possible administration- as clearly there is no income of note and nothing forthcoming therefore if this after extensive investigation is the next stage ( administration ) the club we be sold as an asset to whom the administrators see as the best bet financially without any concern to the fans, Ernst and Young will have total control from the beginning-there fees will be up front-for sure and top dollar- the stock marketing listing can also possibly viewed as an asset? perhaps Dan can clarify this point -Dan ? When the dust finally settles and if we are rid of the vermin that control the club we love great-but once again we may just inherit owners who again we as fans do not matter – I pray not- also if Ernst and Young find illegal proceedings when investigating this may further hinder any sale process- nothing is cut and clear but great progress in the last 24 hours -usually it takes 6- 8 weeks to report back from the receivers no doubt many false trails and statements will surface in the meantime.

    • Will says:

      Are we likely to hear anything from the recievers themselves during this period or ar we stuck with Stock Market Announcements?

  • asif says:

    wonder how desperate mr yeung was to sell demarai gray in the window???? but thank the others they didnt. bet he is crying in his cell

  • asif says:

    please not paladini. vulture springs to mind. dont no much about wray. im gona find some rich arabs and bombard them with emails

  • Will says:

    Jeff Lynne,JC, and TF in a consortium with wealthy backers, JC is for Jasper Carrott not the other JC

  • Bluehobba says:

    I find I am asking myself….Is there a flip side to this. The logical thing would be to sell the greatest asset but who to? Would the logic extend to selling to parties that are interested in investing into the club or the highest bidder no matter where they are based…(maybe I shouldn’t be so pessimistic) KRO

  • peter says:

    I spent 40 years dealing with companies in this sort of trouble and, having taken on Court Receiverships know the world we may be in now.
    I agree with OP that this is a really positive intervention.
    Although never employed by Ernst and Young ,I have always had the highest regard for their competence in this area.
    I look forward to developments.
    A court appointed receivership has nothing at all to do with insolvency,it is what is called an equitable remedy for critical disputes over company management like seems to be obvious here.

  • Richard Granfield says:

    Duties of a receiver:- The receiver may run the company in order to maximise the value of the company’s assets, SELL the company as a whole, or SELL part of the company and close unprofitable divisions.
    Secure the assets of the company.
    Realize the assets of the company.
    Manage the affairs of the company in order to resolve debts owing.

  • KRO says:

    Would be interested to see what Pannu has to say on the recent turn of events… Where are you peter? :D

  • Tony says:

    Thank you Richard, that answers a lot of questions.

  • peter(not P) says:

    Richard is mixing up Administrative Receivership with Court Receivership.

    I spent many years handling both types and this is the Court type.

    It is NOT an insolvency process at all.

    Usually the job is to protect assets,not to sell them.

    Any big ideas have to be put before the court which would hear arguments from all key parties before authorising anything important.

    • Charles says:

      Unfortunately peter(not P) the rules don’t appear to differentiate – see my earlier post

      (c) an Administrative Receiver (as defined by section 251 of the Insolvency Act), a Law of Property Act Receiver (appointed under section 109 of the Law of Property Act 1925) or any Receiver appointed by the Court under the Supreme Court Act 1981 or any other Receiver is appointed over any assets which, in the opinion of the Board is material to the Club’s ability to fulfil its obligations as a Member Club;

      • peter says:

        Please all slow down.
        My earlier posting tried to say that this receivership is a court receivership which is totally different from the usual sort one has read so much about.I am not anything to do with Ernst and Young but do know this world as I was in it all my life.
        Check if you can the terms the court set for the receivers, as in my experience they are usually at this stage simply to protect the assets, NOT to sell any without returning to court for permission.Such permission would depend on the application and any opposition to it.
        I am not commenting on how to interpret rules for points deduction which is not for the court to consider.
        This sort of receivership is unusual and is what is called an equitable remedy to protect assets when there is a dispute between owners.
        FInally of course our beloved Football Club is not being managed by the court as Receivers have only been appointed to the holding company.

        • Richard Granfield says:

          Where does the court figure in this? The announcement makes no mention of it.

          • peter(not P) says:

            Dear Richard,

            Have a look at the BCFC’s own announcement where it is spelt out unambiguously.

            This is NOT an insolvency process in law and has not it seems been triggered by anything other than stalemate amongst the owners and directors.

            Google all the stuff on the web including management’s and Ernst and Young’s statements.

            These receivers are not allowed to be partisan.Their duty is to protect and preserve the assets for the benefit of the company.

  • Neil says:

    With all what is going on let’s be honest this is all out of our hands what is needed is for use as supporters get behind the team and manager and make our selfs be herd at every game been a bit flat last 3 home games we needs to be the 12 man .

  • Raymondo says:

    The most inportant thing is that the club survives and I’m not worried if thatt’s in Division 1. Didn’t do Wolves any harm did it? I quote the Wolves motto as I have before, out of darkness cometh light! This is a good move. Don’t worry if we can’t stay in this division. We’ll be bnack !Promotion season next year from Division i will fill the ground because we’ll keep winning! Then again we might stay up with new owners. Either way KRO.
    .

    • chris says:

      wolves came straight back because their owner backed the manager and sustained a large loss something blues couldn’t replicate

  • Kenny ken says:

    Just saw this thought it could help

    What Are the Possible Outcomes of Receivership?

    If the company’s assets are able to cover the debt owed then they may be able to continue operating after receivership, but this is more of a rare exception than the standard. In most cases the insolvent company is too far behind to cover their liabilities using only their assets, at which point the business must be completely liquidated and dissolved in order to repay as many secured debts as possible. The best way to avoid receivership is to act as soon as the threat arises. You might be able to force your company into an administration procedure, during which time all legal actions against your company (including receivership) are stayed initially for a period of about 8 weeks. Once the threat of receivership is postponed we can help you negotiate a formal company voluntary arrangement (CVA) with creditors, which could give you the breathing space needed to make repayments, or we may consider the option of a pre-pack administration sale.

    – See more at: http://www.realbusinessrescue.co.uk/articles/receivership/going-into-receivership#.dpuf

  • Wingman Blue says:

    If I understand this correctly, the receivers (Ernst & Young(no relation)) have been called in to ensure the effective management of BIHL and its assets (BCFC). Now, E&Y can settle in for a long haul with their own people in control, or they can sell assets to ensure that debts, shortfalls and future financial calls of BIHL can be met. These could probably be met by the sale of BCFC, allowing BIHL to continue with less or no leverage (debt) though doing exactly what could be uncertain, unless the receivers start some enterprise purely to ensure they keep their HKSE listing, a valuable commodity.
    Pannu, Carson, his girlfriend and chauffeur may well benefit from this, though only in a minor way. Once receivership fees and outstanding calls have been met there may not be much.

    BUT BCFC may well be sold and their period of ownership and control becomes history.

    Wonder what the next chapter brings.

    You couldn’t make it up.

  • Freddo says:

    Guys sorry but you need to wake up. Receivers are called in when a company cannot meet its financial commitments. Ernst and Young are specialists in this. They will then need to liquidate the company assets in order to try to pay the creditors – this could include selling the club for a pittance. This sounds good, but means that any muppet could buy it. They are not called in when the directors have a disagreement, and they will have no intention of running the company.

    • almajir says:

      Freddo did you read the announcement? They’re not allowed to lie to the stock exchange and say it’s not a solvency issue when it is…

      It’s not a liquidation nor is it an administration. This is for managerial reasons. FACT.

    • Alex T says:

      You need to look at Peter (not Pan)s comments. He seems to know a lot more than you do

  • Hillfield Blues says:

    By far the best peice of news to come out of HK in years and has pushed us closer to a sale of the club for certain. It’s like the ref has blown the final whistle on all this crap and marched down the tunnel with the matchball. At last some logical conclusions will be drawn from this mess and Blues can finally move foreward.
    I also beleive that as long as we can prove that we are not insolvent and can fulfil our obligations we will not be deducted points by the FL. Surely somebody would have asked for clarification from the FL on this issue before taking this step anyway.

  • AussieBlue says:

    A stunning piece of corporate warfare. By-passing administration and therefore probably avoiding the definition required for the 10pts deduction. Mates, I’ve been involved in dozens of admin/receivership/liquidations and, if HK law mirrors Westminster and Oz, as I think it does, a Receiver is appointed over the ASSETS not the running of the company. This is usually by a secured creditor like a bank but I can’t see any mention of it. Perhaps one of the ‘good’ directors of BIHL acted as the secured creditor? Anyway, as controller of the assets of BIHL, E&Y have an easy job…there’s only one worth anything and that’s the club. E&Y will of course earn handsome fees but they first would want to make sure there is money in the coffers…and sell the major asset – BLUES!!! My experience is that this is usually by sealed tender rather than auction but who knows.
    E&Y, if their remit is extended, will then begin a process of recovering any assets that they believe can be clawed back..such as the missing dosh and possibly other funds hidden in the Caribbean. That will by then be none of our business as the club will have new owners and BIHL/Carson/Pannu will be receding memories.

    Mates, in my humble opinion, this does not just assist the sale process; it makes it a bloomin’ certainty! Carson, Pannu, Wang Lei now have no control whatsoever…the Receiver is all-powerful. Perfect timing on the cusp of Chinese New Year too! 2 weeks where nothing much will happen. As an ironical twist, E&Y could possibly ultimately be benefiting CY & missus as they are the largest shareholders, by returning a percentage of their investment, as creditors. The game’s afoot!

    • DoctorD says:

      AussieBlue — I am not sure what your expertise is, but your posts are almost always financially clear-headed and you appear to have a sound business brain. Glad to have your perspective on this matter — actually I was kind of waiting to see what you were going to make of it.

      • AussieBlue says:

        Thanks Doc – I have been involved in both rescuing and closing up struggling businesses and also business sales ( I have a beauty for $2.3 mill in Oz if anyone fancies a move!). Receivers and liquidators are canny people and often start off as your best friend, ending as your worst enemy but in this I sense a pre-arranged understanding and path of action; it doesn’t sound overly forced.

    • Shirley Blue says:

      I really hope you are right Aussie Blue. I still think the fly in the ointment is the value of the stock exchange listing. If that is worth more than the actual sale value of the club how does it make commercial sense to sell the club lock, stock and barrel. Wouldn’t they look to sell off assets individually?

      • AussieBlue says:

        Hi SB, everything changes in a Receivership. E&Y are no doubt talking to the HKSE people. It could be either a pathway to de-list (HKSE would be glad to see the back of BIHL – shares have been suspended for 2 lengthy periods) or possibly a reverse take-over where an unlisted company buys BIHL and thereby gains the listing and carries on its business.
        My gut feel from afar is that staff are safe up to a new owner taking over, then it’s up to them…but why would they disrupt such a well run club?

    • Raymondo says:

      I appreciate your imput Aussie Blue almost as much that pictur/’e-mail yuou once sent me about the Aussie Sheila. Thank you. I feel more onfident rather than otherwise after your imput today. Just hope we keep GR and co. in the process of being sold. KRO.

      • AussieBlue says:

        She’s still waiting your call Raymondo! Would be madness to lose GR & Co. Good people are hard to find in any business.

  • AussieBlue says:

    Correction: I note that the Receiver is court-appointed and, although very rare that it happens, a Court can appoint a receiver and manager under its own legislation where it is “just or convenient” to do so or there is something called ‘oppression’ of individuals with financial stakes.
    The way I read it; the E&Y folks have become officers of the Court, which is good. To me, this is not just Receivership but Receiver-Managership. It might appear semantic, but at least it avoids the word ‘Administration.’ Whatever, this action is an elegant arabesque into the shadows of the corporate stage; and for the greater good.

  • Shirley Blue says:

    Well it must be worrying times for the non playing staff at the club if E&Y are taking over the day to day running of the finances of the club. Hopefully in the long run it will secure their jobs and the future of the club. Nearly forgot we have an important game tomorrow night with all this going off today.

    • DoctorD says:

      ShirleyBlue; I don’t think E&Y are taking over the day-to-day running of Birmingham City, but of BIHL.

      • Shirley Blue says:

        Well it said on BBC local news they are taking over the day to day running of the finances of the club so I would imagine there will be some nice cars in the car park tomorrow morning.

        • AussieBlue says:

          ShirleyBlue – there’s been a lot of inaccurate reporting and commenting on this matter as corporate law, receiverships, admins, liquidations are such complex areas. BCFC plc is not in receivership and therefore is not subject to the ignominy of a receiver-manager rolling up in his Merc and taking over the bank accounts. BCFC is an asset of BIHL, Receivers Appointed in Hong Kong, that is there to be sold. It will be to E&Ys advantage to have it in as good a shape as possible for a prospective buyer and having great management and staff is key to this. E&Y must be salivating at the prospect of a quick 20-30 million (if that’s what they get) into the coffers as part of their receivership.
          I hope I am right. Draw a thick blue line between BCFC and BIHL and our club is well run, fantastically staffed and moderately successful. When all this is over, Pavlos should be given the keys to the city!

        • almajir says:

          No, of BIHL. Key distinction.

  • AussieBlue says:

    PS: E&Y might put a local minder in to keep an eye on stuff, or they may delegate that to Pavlos.

    • Adam says:

      Thanks for the intelligent input AussieBlue. So frustrating watching all this from the other side of the world. Just out of interest where are you? I,m in Brissie. When we got sold to a Billionaire and reach the Premier again we can celebrate and watch on Fox Sports!!!!

      • AussieBlue says:

        G’Day Adam,
        I’m in Sydney mate . Get up to Brissie about once or twice a year. Lived there for a year managing a business near the Valley. Be great to hook up over a beer one day!

  • Raymondo says:

    Three new managers in the local area in 6 months and new owners soon at Blues. It’s definitely “watch this space” around the West Mdlands”. We might even get shown on MOTD before the London and Northhern clubs one day!

  • Raymondo says:

    It occurs to me that a season in Division 1 (where a lot of our current players came from) could bring the crowds back to Stans with what would surely be a winning team at that level. Is that such a bad thing? The worst case scenario? Maybe not.


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