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Page last updated at 12:32 GMT, Tuesday, 27 April 2010 13:32 UK

Birmingham City resolve dispute with Seymour Pierce

Carson Yeung
Yeung completed his takeover of Birmingham in November 2009

Birmingham City owner Carson Yeung has eased fears over the club's future by paying off a £2.2m debt to investment bank Seymour Pierce.

The bank had warned it could sell the club if the money owed to them for their role in Yeung's takeover was not paid, as stipulated by a court order.

In a statement, Birmingham confirmed the full amount had been paid.

They also stressed their parent company had not lost control of the club and is to appeal against the decision.

"Birmingham International Holdings Limited announces that the full amount due to Seymour Pierce, as a result of litigation over alleged unpaid fees stemming from the 2007 role of Seymour Pierce in advising Grandtop International Holdings Limited in acquiring an interest in Birmingham City, has been fully paid," read the statement.

"As previously announced, Birmingham International Holdings Limited is appealing the decision.

"Queen Counsel's advice had been sought and grounds of appeal had been filed.

"It is stressed that Birmingham International Holdings Limited has not and will not lose control of Birmingham City Football Club as a result of this litigation."

606: DEBATE

Seymour Pierce successfully sued Birmingham in March to recover the fee it claimed to be owed for advising Yeung when he first tried to take control of City nearly three years ago and bought an initial 29.9% stake in the club, but the fees were not paid by the 12 April deadline.

The company, which is chaired by football financier Keith Harris, had advised Yeung prior to the takeover of Birmingham but Yeung then appointed a different company to complete the deal.

However, Seymour Pierce successfully argued its contract remained valid and it was owed the money.

Seymour Pierce spokesman Neil Bennett explained earlier this month: "Seymour Pierce advised Carson Yeung and his company, which was then called Grandtop and is now called Birmingham International Holdings, a Hong Kong company.

"They advised them on the takeover of Birmingham City and they were due to pay Seymour Pierce a success fee for £2.2m.

"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."

Yeung's takeover of the club was finally rubber-stamped by the Stock Exchange in November 2009.

Alex McLeish's side are currently ninth in the Premier League and on course to match the club's highest top-flight finish since 1959.



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see also
Birmingham play down bank dispute
15 Apr 10 |  Birmingham
Yeung's Blues takeover approved
11 Nov 09 |  Birmingham
Gold cautions Yeung on price cut
14 Oct 09 |  Birmingham
McLeish is part of new Blues - Yu
13 Oct 09 |  Birmingham
Liverpool 2-2 Birmingham
09 Nov 09 |  Premier League
McLeish excited by Blues takeover
06 Oct 09 |  Birmingham
Premier League approval for Yeung
25 Sep 09 |  Birmingham
Hong Kong bid for Birmingham City
21 Aug 09 |  Business
Yeung puts deposit on Birmingham
20 Aug 09 |  Business
Yeung in Birmingham takeover bid
12 Aug 09 |  Birmingham


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