You will probably all have heard by now of the news breaking in Hong Kong that all the existing directors of Birmingham International Holdings Ltd (BIHL) have been ousted by the Receivers, either through resignation, suspension or removal.
Blues Trust considers this as welcome news but it is still too early to establish what the impact may be and whether the news can be considered as positive. However, Blues Trust does welcome the news that Peter Pannu, whose influence within BIHL had significantly diminished, has finally been removed from the Board. It also renders the EGM called by Carson Yeung as invalid and is most unlikely to take place. This could have had a significant effect on the stance taken by the Football League had Carson been successful.
What does this mean for the Club and what does receivership mean in terms of the viability of ongoing operations of its parent company, BIHL? Put quite simply, it seems that the parent company has now relinquished control of its own operations which have been temporarily (or maybe permanently) placed in the hands of its appointed receivers. The Club was quick to confirm that despite all that is going on in HK, it is business as normal in the UK and Panos Pavlakis, who has brought a certain amount of stability, will continue to run Club operations here.
We understand the Receivers are continuing to conduct investigations into the affairs of the Company and, at the appropriate time, will update the Shareholders and the Stock Exchange with respect to any further developments. The end game is a sale but what remains unclear is whether that is of BIHL itself or its only asset, which is BCFC, and it could be sometime before this is known.