Portsmouth Football Club are expected to learn on Thursday that HM Revenue and Customs (HMRC) will accept the legality of the club entering administration.

The south coast are still likely to face a nine-point deduction in the Premier League but will now avoid a winding up order after HMRC accepted that owner Balram Chainrai was legally entitled to put the club into administration.

Administrator Andrew Andronikou commented: "We had a very constructive meeting with HMRC on Tuesday and the company have provided a detailed analysis of its financial transactions with Portpin Limited, the chargeholder in this matter.

"HMRC should be now be satisfied that the said debenture is valid and according our appointment is valid. We are hoping this matter will be resolved shortly."

The HMRC decision comes as 85 staff at the Hampshire club were made redundant while 12 members of staff were moved to reduced hours.

Chief executive Peter Storrie, whose handling of the club's finances has been widely criticised, has tendered his resignation according to Mr Andronikou but will remain at Portsmouth until a new buyer is found.

"He is still chief executive today," Mr Andronikou added. "He is still earning a wage and having spoken to Peter he would like it known he has taken a 40 per cent cut in his basic wage. As regards to his basic wage he will be earning significantly less than £500,000. I don't believe there will be any bonuses this year."

The chief executive is believed to be at Wembley Stadium on Thursday finalising arrangements for Portsmouth's upcoming FA Cup semi-final tie against either Fulham or Tottenham Hotspur.
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