Bank threatens Birmingham sale

An investment bank is threatening to sell English Premier League side Birmingham City due to an unpaid debt of 2.2 million pounds (3.3 million dollars) they claim is owed to them by club owner Carson Yeung.

Seymour Pierce says it is owed the money for advising Hong Kong based businessman Yeung in his takeover of Birmingham, which was completed in November.

The bank won a court order requiring Yeung to pay by Monday. But as the money was not received Seymour Pierce can now gain a charge of the shares held by Yeung’s company, Birmingham International Holdings.

“Seymour Pierce can take a charge over the shares of Birmingham City and do what they need to do with them to recover the money it is owed, so that means they could potentially sell them to another owner,” Seymour Pierce spokesman Neil Bennett told Sky Sports News on Thursday.

Seymour Pierce advised Yeung prior to the takeover of Birmingham, but Yeung used a different firm to help him seal the purchase of the Midlands club from former owners David Sullivan and David Gold, now in charge at West Ham.

But Seymour Pierce argued successfully its contract remained valid and it was owed the money.

Bennett said: “Seymour Pierce advised Carson Yeung and his company, which was then called Grandtop and is now called Birmingham International Holdings, a Hong Kong company, and they advised them on the takeover of Birmingham City and they were due to pay Seymour Pierce a success fee for 2.2 million pounds.

“They didn’t pay it. Seymour Pierce has gone to court, and won the High Court case. The Hong Kong company was given 14 days to pay the money.

“That expired on Monday. They haven’t paid so in effect they are in contempt of court and Seymour Pierce has taken the necessary steps to effectively take control of Birmingham City to recover the debt.

“It is very regrettable, very regrettable indeed, that Seymour Pierce has had to go to these lengths to get the fee but a contract is a contract and Seymour Pierce needs to be paid for its work.”

Bennett added: “There have been very lengthy contacts both with Carson Yeung and his legal advisors, but it’s sort of past the point of contact.

“The money was due to be paid on Monday. They haven’t paid it. They’re in contempt of court. It’s a serious issue.”

A statement issued by Birmingham International Holdings said they intended to appeal. Meanwhile, a hearing is due on May 27 when Seymour Pierce could formally take control of the club.

However, Bennett said Yeung could still end the matter without any need for further legal action.

“This can be resolved very quickly by Carson Yeung and his company sending their cheque for two and a half million pounds to Seymour Pierce,” he said.

“Otherwise the process will proceed rather remorsefully, and during the summer break there could be a change of owner at Birmingham City which I don’t think would be in anyone’s interests.”