Birmingham City's owners in receivership
Tue 17th Feb 2015 | Money & Finance
Birmingham International Holdings Limited (BIHL), the company that owns Birmingham City Football Club has gone into receivership.
BIHL blame "fractious and inharmonious relations within the management" for the decision and said it had appointed three receivers from Ernst and Young.
The club reassured supporters that no winding-up petition had been filed.
Full statement below:
Birmingham City Football Club (BCFC) acknowledges the Hong Kong Stock Exchange announcement made today by its parent company Birmingham International Holdings Limited (BIHL) whereby it confirmed the voluntary appointment of three leading persons from Ernst and Young Transactions Limited (the specialist receivership arm of the international accountants firm Ernst and Young) as the Receivers of BIHL.
BCFC naturally recognises the impact which this announcement may have on itself and how it may be interpreted by its supporters, staff, media, and the wider domain.
The Club therefore wishes to explain why the majority directors on the Board of BIHL had deemed it necessary to take this voluntary but unusual course of action.
First and foremost, however the Club wishes to reassure its supporters and staff most emphatically that no winding up petition has been filed against the Company (BIHL) and that it is therefore not in liquidation.
The subsidiary (BCFC) can fulfil its obligations as a member club of the Football League and shall continue to maintain a strong dialogue with the board of the Football League on this matter.
With no apparent resolution to the fractious and inharmonious relations within the management, the majority on the BIHL Board decided that it had no other option but to openly and voluntarily request reputable receivers to take over the management of BIHL on its behalf.
Without any obstruction or distraction, the Receivers will be able to manage the day to day activities of BIHL, take control of its finances, carry on the business of the Company and take such steps as may be necessary for the purpose of preserving the future of the subsidiary BCFC.
The Board is committed to working in unison and in full cooperation with the Receivers to find the best way forward for the greater good of the Club.
The Club has been in direct dialogue with the Receivers, who have confirmed that: “For the avoidance of doubt, the appointment of the Receivers by the Court on 16 February 2015 has nothing to do with the insolvency of the Company. As at the present moment, we do not see any liquidity issue in the Company. "Moreover, pursuant to the Order granted by the Court on 16 February 2015, the Receivers will endeavor to put together the latest financial information of the Company with the assistance of the management of the Company as soon as possible.”
The Receivers further advised the Club’s management that, subject to the Order granted by the Court on 16th February 2015 it is “business as usual”.
A Football League spokesman says:
"The League received notification earlier today regarding the appointment of receivers by Birmingham City's holding company.
"We have requested a meeting with the club and the appointed receivers at the earliest opportunity to discuss the matter."
Image: Action Images / Paul Redding
Posted by: Kev Howland
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