Fears for Birmingham After Receivers Called In

The owners of Birmingham City Football Club have insisted is it not in danger of folding despite being plunged into receivership.

Birmingham International Holdings Limited (BIHL) said the day-to-day running of the Championship outfit would not be affected by the move.

In a statement they said directors had decided on the "unusual course of action" because of the "fractious and inharmonious relations within the management".

In an attempt to reassure supporters BIHL pointed out no winding up petition has been filed against the company and that it was "therefore not in liquidation".

The statement said: "The subsidiary (Birmingham FC) 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.

"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.

"Without any obstruction or distraction, the Receivers will be able to manage the day to day activities of BIHL, take control of its finances, carry on the business of the Company and take such steps as may be necessary for the purpose of preserving the future of the subsidiary BCFC.

"The Board is committed to working in unison and in full cooperation with the Receivers to find the best way forward for the greater good of the Club."

For the time being BIHL said Birmingham will be run by "three leading persons" from international accountancy firm Ernst and Young.

The news has been welcomed by many fans after the uncertainty caused by the arrest and subsequent jailing of former owner Carson Yeung for money laundering.

"So it's good news after all. Hopefully this will lead to a sale 'soon'", one supporter, Dalmar Ragnarsson, said on Twitter (Xetra: A1W6XZ - news) .

Another, Daniel Brindley, said: "Receivership sounds bad but actually means a sale could be closer now with impartial directors. Hopefully sooner rather than later."

The Football League have yet to say if Birmingham, who lie 13th in the table, will now be deducted 10 points as a result of their financial position.

A spokesman said: "The League received notification earlier today regarding the appointment of receivers by Birmingham City's holding company.

"We have requested a meeting with the club and the appointed receivers at the earliest opportunity to discuss the matter."