Blues Saga: Receivers seize control of BIHL board as Pannu dismissed
THE fate of Birmingham City Football Club could well be decided shortly after a spectacular boardroom coup at parent company Birmingham International Holdings.
Receivers from Ernst & Young have swept away the old BIHL board of directors and appointed themselves as the new executives in a move which could pave the way for the sale of the club.
The move is also likely to torpedo any attempt by former owner and majority Blues shareholder Carson Yeung to wrench control of the company from his Hong Kong prison cell.
The spectacular transformation has seen the resignation of seven BIHL directors, enforced removal of a further two – including former Blues chairman and managing director Peter Pannu – and the suspension of a further two.
In a statement to the Hong Kong Stock Exchange, the receivers said they were also conducting an investigation in the affairs of the company and would update the market and shareholders once the inquiry was concluded.
The upheaval has seen the resignations of: BIHL chairman Cheung Shing, who intends to “devote more time to his other business commitments”, Ma Shi Cheung, who will devote more time to other interests, Chen Liang, Panos Pavlakis (although he remains a director of Birmingham City FC), Liu Enxue and Li Hanguo.
In addition to Pannu, the receivers have also removed Chan Shun Wah, while Cheung Kwai Nang and Carson Wong have both been suspended.
Receiver Stephen Liu is now the new chairman, with fellow receiver David Yen now executive director and CEO of the company.
The receivers have also brought on board some heavyweights from the Hong Kong financial services sector to act as non-executive directors. These include Cheung Yuk Ming, a member of the HKICPA, the Hong Kong Institute of Bankers, the Institute of Internal Auditors (United States), the Institute of Chartered Accountants (England and Wales), the Chartered Institute of Arbitrators (United Kingdom) and the Hong Kong Securities Institute.
Birmingham City reacted to the announcement by reassuring fans that it was business as usual for the club.
In a statement, the club said: “The club can assure supporters and staff that this still very much the case – there is no change in the day to day running of Blues.
“Panos Pavlakis continues to lead the UK management team from St. Andrew’s and work closely with Gary Rowett on all football matters, as per usual.
“The board also carries on working in unison and in full cooperation with the receivers for the good of the club.”
