Investment bank Seymour Pierce has threatened to take control of Birmingham and put the club up for sale unless owner Carson Yeung pays a £2.2 million fee.
Seymour Pierce won a High Court judgement against the owner’s company, Birmingham International Holdings, last month after claiming Yeung had promised to pay the fee if his takeover bid succeeded.
“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 said on Sky Sports News.
“They didn’t pay [the £2.2 million fee]. 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.”
In response to the ruling, Vico Hui, the chief executive of Birmingham International Holdings, said: “The company is seeking leave from the Court of Appeal to appeal this decision. A further announcement will be made as and when appropriate.”