Birmingham City Have £15 Million Debt Written off

Carson Yeung has written off £15 million pounds worth of debt owed by Birmingham City in return for a larger stake in Birmingham International Holdings Limited.

The owners stake is set to rise from 26.31 to 27.63 percent. Reactions around the news seem to be hopeful, with suggestions that with Yeung’s direct link to the club now gone, a sale may be forthcoming.

With the debt being removed from Blues and thus from its parent company BIHL, it is a sign that the parent company is beginning to become a going concern which will in turn facilitate the sale of an asset (that asset being Blues).

What has basically happened is Yeung has bought more of BIHL but with money he had already given them as capital, by writing off the debt he has given an increased share. This will increase the amount of payout he is given should it all be wound up after BCFC is sold.

Paladini is no doubt taking notice of the goings on in the past few days, given his previous interest in the club. Buying Blues was never going to be easy if it still had liabilities linked to the east, with it finally gone something may be able to happen.

Lets not just consider Paladini thhough, with the club free of its liabilities it is all of a sudden going to be a more attractive buy to may more would be investors. I know I’m being optimistic here, but aren’t all Blues fans optimistic?

It had looked as if Yeung was holding onto Birmingham City FC with all his might, but alas it seems that the tide could be turning and the pressure beginning to toll.