Blues Saga: Receivers tell shareholders sales process is ongoing

RECEIVERS acting for the parent company of Birmingham City FC have told shareholders the process of selling the club is continuing.

Ernst & Young in Hong Kong, acting for Birmingham International Holdings, have entered into an exclusivity agreement with a company called Trillion Trophy Asia Ltd to acquire the football club.

Trillion has been given a two-year exclusivity agreement by the receivers to enable it raise the cash necessary to make the purchase.

Trillion has been pressed to agree the terms after it entered into the exclusivity agreement.

The facility being made available to BIH by Trillion consists of the drawing of a loan for HK$9,813,600 (£820,000) as security for the bank facilities granted by HSBC in the UK to Birmingham City FC.

The agreement will also allow BIH to draw on an aggregate amount of HK$153,000,000 (£12.8m) for the operation of the football club.

BIH has used as security the club’s St Andrew’s ground and the land that surrounds it.

However, if Trillion is unable to raise the necessary funding or it goes over the two-year period then the exclusivity deal will be terminated, the receivers have said.

In their latest update to BIH shareholders, the receivers said negotiations over the deal were continuing.

The receivers added that further announcements on the progress of the deal would be made in due course and at any rate, on a monthly basis until the matter was concluded and a deal was forthcoming.

Trading in BIH shares therefore remain suspended until further notice.