Birmingham City have enough funds to finish the season the Football League have been told.
The receivers of Birmingham International Holdings Limited (BIHL) have confirmed that the club has enough funds to complete the season and should not be deducted any points. The standard points deduction of ten points would hurl the Blues back into the relegation zone.
City’s parent company BIHL went into receivership on the 17th February but the football club itself did not. BIHL is believed to have gone into receivership in order to solve the boardroom arguments that has plagued them since former owner Carson Yeung was jailed for money laundering.
Receivers Ernst and Young have told the Football League that they do not believe the situation should be considered an “insolvency event.” In a statement the Football League also said:
“The Receivers undertaken to work in a transparent manner with The Football League so as to enable the League’s Board to consider the matter at the earliest possible opportunity. The Football League also received confirmation that no funding will be withdrawn from Birmingham City and that sufficient funds are available to ensure that the Club can complete the 2014/15 season.”
Despite these assurances, the Football League can still impose a points deduction if they disagree with the receivers over the nature of the situation. Birmingham face high-flying Brentford at St Andrew’s on Saturday.
