Birmingham City end links with Pannu
Birmingham City have parted ways with acting chairman Peter Pannu. It comes as the Championship club's Hong Kong parent posted widening losses casting a doubt on its abilities to continue as a going concern.
Pannu signed a five-year consultancy agreement with majority shareholder Carson Yeung – now jailed for six years for money laundering – in September 2009.
A statement on the club's website said: "Birmingham City FC can confirm that the service agreement of Peter Pannu will not be renewed beyond 30 September 2014.
"Panagiotis Pavlakis (Panos) will continue to act as representative of the BCFC board in the UK and oversee the day-to-day running of the club with full support from the UK management team."
Birmingham International Holdings also issued its results for the year ended 30 June 2014 to the Hong Kong Stock Exchange.
Revenue fell from £23.4m to £20.1m with operating expenses of £28.8m, including staff costs amounting to £18.5m.
It led to a loss for the year or more than £12m, which the company had warned about back in August (2014). The company also has net current liabilities of approximately £7.7m.
Birmingham International blamed the fall in sales on the club remaining outside of the Premier League and the losses on less money coming in from the sale of players.
"These conditions indicate the existence of a material uncertainty which may cast significant doubt on the group's ability to continue as a going concern and therefore that it may be unable to realise its assets and discharge its liability in the normal course of business," the accounts said.
However, the directors of Birmingham International added there was sufficient working capital to meet its financial obligations as and when they fell due for the next 12 months.
It based this opinion on a £9.5m bonds issue by a company owned by chairman Cheung Shing and vice-chairman Ma Shui Cheong, Deluxe Crystal Ltd, and the group's ability, if necessary, to raise funds by way of issuing additional equity and/or debt securities.