Blues Saga: Pannu demands compensation for damage to his reputation

THE former acting chairman of Birmingham City FC, Peter Pannu, has launched a claim against receivers acting for the club’s parent, Birmingham International Holdings, demanding compensation for his sacking as a director and damage to his reputation.

In a series of letters to receivers, Pannu, who is also a former chief executive of BIH, variously asks for bonus payments of not less than HK$1m (£86,700), HK$391,313 (£26,000) which he claims is owing to his company Asia Rays Ltd and compensation for losses and damage to his reputation.

The letters state that Pannu will accept “payment of a sum to be agreed by the parties as liquidated damages to recompense Mr Pannu for the damage to (his) future earning potential as a result of certain stigma which now surrounds (his) ability to perform his roles of CEO and MD of a publicly listed company”.

It continues, he will further accept “payment of a further sum to be agreed to recompense Mr Pannu for the distress and hurt that (he) has been caused as a result of the publication of the statement that Mr Pannu is an ‘inappropriate’ person to act as the MD and CEO of the company (BIH) and to ensure Mr Pannu can seek to vindicate his reputation”.

Pannu has also asked for copies of letters submitted by former BIH vice-chairman Ma Shui Cheong which are understood to form the business case for the appointment of the receivers.

He has stopped short of demanding his reinstatement but has demanded that the announcement by the receivers terminating his appointment as managing director and CEO of BIH and his resignation as director of Birmingham City Plc and Birmingham City Football Club be withdrawn and an apology issued.

Pannu was dumped off the BIH board earlier this month by the receivers as they looked to transform its management capabilities.

The receivers say they are taking legal advice to resolve the matter.