Portsmouth get seven days to fight winding-up petition

Portsmouth fan David Maples outside the High Court in London Portsmouth have been given a seven-day stay of execution after getting more time to fight a winding-up petition. The club now have until 1600 GMT on 17 February to file a "statement of financial affairs" proving they can pay their creditors. Her Majesty's Revenue and Customs had taken Portsmouth to court over an unpaid tax bill amounting to £7.4m. Pompey also claimed at the hearing they have received two "serious" offers from parties interested in buying the club. If Portsmouth file the statement of affairs, the earliest the case could return to the High Court is Friday 19 February. Court registrar Christine Derrett said she feared the company would continue to trade and build up more debts that would not be paid. "I am very concerned about the financial status of this company," she said. "It seems to me there's a very real risk that this company is undoubtedly trading while it is insolvent. PORTSMOUTH IN CRISIS May 2009: Club accept takeover bid from Sulaiman Al Fahim Oct 2009: Al Fahim sells 90% of his shares to Ali Al Faraj Oct 2009: Premier League issues embargo on Portsmouth registering new players Dec 2009: Portsmouth fail to play players for a third time Jan 2010: Premier League confirms it will distribute TV payments directly to Portsmouth's creditors. Transfer embargo lifted 4 Feb 2010: Hong Kong businessman Balram Chainrai's company Portpin takes a controlling interest 9 Feb 2010: Portsmouth fail to agree a deal with HMRC to pay their outstanding tax bill 10 Feb 2010: High Court grants club seven-day stay of execution "I'm obviously conscious that, by making a winding-up order, it would have very severe consequences not only for the company as a business but for the supporters themselves, but that's not a consideration that I strictly take into account." Gregory Mitchell QC, who represented HMRC, said: "It's quite clear, beyond any doubt at all, that this company is insolvent. "They have failed to provide any evidence at all as to their solvency. There are many debts and they are unpaid." However, Pompey were granted extra time to settle their tax debt after arguing they had received two serious offers to buy the club. As well as the VAT bill Portsmouth is disputing with HMRC, it also owes £4.7m in unpaid PAYE and National Insurance which were not part of the court petition on Wednesday. BBC sports news correspondent Gordon Farquhar explained: "Portsmouth have proposed to appoint a specialist insolvency accountancy firm to produce what they call a statement of affairs. "This is to go through the club's accounts and say 'this is precisely what the future predictive income is, this is the current level of debt and this is the cash which may be coming into the company so we can present you with an accurate reading of exactly where the club is at in order to inform your decision'. "After seven days the copy of that report will be given to the Revenue and Customs people to look at, to make their decisions and make their comments on it. "Then everybody is back in court as soon as possible after the 19th of February to settle this once and for all." Last week Balram Chainrai, a Hong Kong-based businessman, became the club's fourth owner of the season. Nigel Hood, representing the club at the hearing, said Chainrai would run the company until it was financially stable and then sell it on to someone who wanted to "operate the business as a football club". He added that any move to force the club to wind up would have "very serious consequences". "There would be irreparable harm caused not only to the suppliers but to the employees, 600 staff and people who have paid in advance for their season tickets, who would lose their money," said Hood. Bottom-of-the-table Pompey have debts of £60m and are five points from safety following a 1-1 home draw against Sunderland on Tuesday. Their financial woes have meant their players have been paid late on four occasions this season. Portsmouth are also involved in a separate dispute with former owner Sacha Gaydamak over whether they have missed a deadline in paying a £9m chunk of the £28m they owe to him. The Fratton Park team are also being sued by former defender Sol Campbell for £1.7m for unpaid image rights.