The UK’s Customs and Revenue has decided to drop the legal challenge against Pompey’s fall into administration.
The Premiership club went into voluntary administration on February 26, but the HMRC was unhappy with the outcome, leading to an official challenge over the decision to allow administrator Andrew Andronikou to take charge of the club’s affairs.
That challenge has now been dropped, and a spokesman for HMRC said, in a statement: “Despite HMRC continuing to have a number of remaining questions and concerns around the relationships of various parties, and a lack of detail of financial affairs, HMRC has now advised the administrators that we will no longer challenge the validity of the administrator’s appointment.
“This comes in light of the additional material now provided following the judge’s directions of 2 March 2010.
“HMRC would expect that now that the issue of validity is no longer in question, the administrator will be able to make early and real progress with the administration in order to get the best and most equitable return for all creditors.”