Football League given green light over Birmingham City

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Birmingham City's parent company Birmingham International Holdings Limited have appointed receivers to try and put an end to the vicious infighting in the company. 

Because of this, no winding up petition was granted against the club to allay fears that the club could go into immediate liquidation. 

BIHL have appointed Ernst and Young transactions Limited to manage the company on a day-to-day basis against a background of their own politics and regulation.

Administration avoided

The Football League have spoken to the receivers, and the club and are satisfied that the correct measures are in place to allow the club to stay afloat. 

This comes as welcome news to Birmingham City fans as administration could lead to a 10-point deduction, which would undo all of the hard work done by Gary Rowett since his appointment.

Statement looks positive

An official statement read: "The Football League can confirm that it has met with representatives of Ernst and Young, the Receivers of Birmingham International Holdings Limited, the ultimate parent company of Birmingham City. Representatives of the club were also present at the meeting.

"The Receivers made it clear that they do not believe that their appointment, in Hong Kong, should be considered as an 'insolvency event' under Football League regulations and have undertaken to work in a transparent manner with The Football League so as to enable the League's Board to consider the matter at the earliest possible opportunity.

"The Football League also received confirmation that no funding will be withdrawn from Birmingham City and that sufficient funds are available to ensure that the club can complete the 2014/15 season."

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