Championship side Birmingham ease concerns after parent company goes into receivership
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The Championship club's parent company, Birmingham International Holdings Limited (BIHL), has gone into receivership after an announcement on the Hong Kong stock exchange.
BIHL said it had appointed three receivers from Ernst and Young to oversee proceedings.
Birmingham are currently thirteenth in the Championship but are 15 points away from the play-offs.
"BCFC naturally recognises the impact which this announcement may have on itself and how it may be interpreted by its supporters, staff, media, and the wider domain." a statement on the club's website read.
"The Club therefore wishes to explain why the majority directors on the Board of BIHL had deemed it necessary to take this voluntary but unusual course of action."
"First and foremost, however the Club wishes to reassure its supporters and staff most emphatically that no winding up petition has been filed against the Company (BIHL) and that it is therefore not in liquidation."
The statement went on to further explain that the club's involvement in the Football League will not be affected by the announcement and they will continue to play as normal.
"The subsidiary (BCFC) can fulfil its obligations as a member club of the Football League and shall continue to maintain a strong dialogue with the board of the Football League on this matter."
The club blamed the decision on rifts in the holding company's boardroom,"With no apparent resolution to the fractious and inharmonious relations within the management, the majority on the BIHL Board decided that it had no other option but to openly and voluntarily request reputable receivers to take over the management of BIHL on its behalf."
The Club has been in direct dialogue with the Receivers, who have confirmed that: “For the avoidance of doubt, the appointment of the Receivers by the Court on 16 February 2015 has nothing to do with the insolvency of the Company. As at the present moment, we do not see any liquidity issue in the Company."
"Moreover, pursuant to the Order granted by the Court on 16 February 2015, the Receivers will endeavor to put together the latest financial information of the Company with the assistance of the management of the Company as soon as possible.”
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