Blues feud nears resolution after club agrees deal with Pannu

THE owner of Birmingham City FC appears to have reached a long-term agreement with former director and chairman Peter Pannu which could finally clear the way for the sale of the club.

In a statement to the Hong Kong Stock Exchange, administrators from Ernst & Young acting for Birmingham International Holdings, said they had reached an agreement with Mr Pannu and the various companies in which he is involved.

While subject to approval at an extraordinary general meeting, the agreement means the club will drop High Court action against Mr Pannu if he agrees to do likewise with his own case against the club.

The no-blame settlement should allow the club to continue with its restructuring programme which could eventually lead to the resumption of trading in its shares on the Hong Kong Stock Exchange. Share trading in Birmingham International Holdings has been suspended since December 2014.

A statement to the Hong Kong exchange is typically convoluted but without the bitterness which has characterised the feud between the various factions at the club in the recent past.

It states: “The company, BCFC, Mr Pannu, Asia Rays and Amazing Top (a company registered in the British Virgin Islands and wholly owned by Mr Pannu) have, without admission of any wrongdoing or liability and by the withdrawal of all allegations against each other, either in any on-going proceedings or elsewhere in the past, have amicably resolved and have entered into the Settlement Agreement.

“Upon mutual discussions and negotiations, the parties have agreed to discontinue High Court Action No. 1355 of 2015 against the company in return for the company and BCFC to discontinue High Court Action No. 1590 of 2015 against Asia Rays, Amazing Top and Mr Pannu (if he is joined as a party, which currently he is not) pursuant and subject to the terms and conditions of the Settlement Agreement.”

An independent committee will now be established to advise shareholders on whether the terms of the agreement are fair and reasonable.

An independent financial adviser will also be appointed to advise the committee and shareholders in relation to, among other things, the settlement agreement and the proposed restructuring.

At the conclusion of the agreement Mr Pannu will be required to sign over his interests to Birmingham City Football Club, thereby releasing him from any further involvement in the club.

This should see the final obstacle to the restructuring removed, and long-term a sale of the club.