Chainrai urges admin fee cut
Former Portsmouth owner Balu Chainrai is on the verge of an agreement with administrators - but claims a deal needs to be reached over fees.
By Bryan Swanson, Chief News Reporter, Sky Sports News. Follow on Twitter @skysports_bryan
Last Updated: 12/08/12 1:30am
Former Portsmouth owner Balu Chainrai is on the verge of an agreement with the club's administrators - but claims a deal needs to be reached over fees.
Chainrai has flown back to Hong Kong after meeting business partner Levi Kushnir, administrator Trevor Birch and PKF lawyers.
"Although not all CVA (Company Voluntary Arrangement) terms were met, we are ready to move forward." said Chainrai, in a statement released to Sky Sports News HD.
Chainrai revealed that Portpin has asked administrators to accept a reduction in their fees, which include legal fees, with further deferrals over two years.
He said: "All players and staff made a lot of efforts to compromise their situation and we accept agreements to move forward, subject to passing Football League requirements.
"Portpin request that the administrator, and their lawyers, reach a compromise with Portpin to reduce their fees of £1.85m, including legal fees of PKF lawyers, which we believe are extremely high.
"We request administrators to reduce their fees by £200,000 and a further £100,000 deferral to 2013 and another £100,000 deferral to 2014 - like all players who have deferred their compromises for four years.
"We are waiting for them to confirm this discount, so we can use all proceeds from the parachute payment to rebuild the club."
Chainrai says Portpin want to rebuild Portsmouth, who prepare to kick off against Bournemouth in League One on August 18th at Fratton Park.
"Monies will be used to rebuild this club from the bottom and, with the help of the manager and employees, I hope we get support from fans after saving this club, once again, from its grave," he said.
"Portpin is ready to move forward subject to the administrator accepting to reduce their fees and legal fees."
Trevor Birch was unavailable for comment.