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Page last updated at 12:00 GMT, Monday, 25 October 2010 13:00 UK

Portsmouth recovery will take two to three years to

Balram Chainrai
Chainrai became Portsmouth owner in February 2010

Portsmouth chief executive David Lampitt says the legacy of the club's financial crisis will take two or three years to completely remove.

Pompey averted liquidation after the weekend sale of the club back to Hong Kong businessman Balram Chainrai.

Lampitt told BBC Radio Solent: "We just have to take it a step at a time now.

"It's been a very, very difficult period for the club. There are no winners in any situation where a business goes into insolvency."

At one stage it looked possible that Pompey would go out of business. Negotiations had broken down with former owner Sacha Gaydamak over the repayment terms for a secured debt of more than £2 million before a late deal was struck.

The new owner has refused to make any rash promises but Lampitt feels Chainrai and business partner Levi Kushnir are committed to bringing long-term stability back to the Championship club.

"He's got a vested interest in the future of the club given the funds he's got committed to it.

The exit from administration frees up some money to be released from the Football League which has a very significant impact on our immediate cashflows

David Lampitt, Portsmouth FC Chief Executive

Lampitt has also confirmed that the club will be adding one or two more directors in the near future.

The takeover by Chainrai means that a Company Voluntary Arrangement that addresses the unsecured debt owed to a significant number of the club's creditors can now be honoured.

An average of 20p in the pound will be paid back over a five year period. Lampitt has been quick to recognise the hardship that the financial crisis has created.

"It has been a positive outcome in the end but I think that always has to be tempered by the fact that out of that positive outcome a lot of people have lost out."

The Pompey chief executive has also played down recent speculation linking potential new investors including Manchester based entrepreneur Tom Lever and a consortium led by former Hull City chairman Paul Duffen.

"As far as I am aware the answer is 'no'. People will always make a play and create speculation whether they are interested or not and we just have to deal with that."

On the playing side, there was positive news for manager Steve Cotterill. A long-standing transfer embargo has been lifted after eight months in administration.

However, Lampitt has confirmed that, in reality, any squad strengthening will have to fall in line with the club's business plan made available to the Football League.

"We want to maximise the amount of money we can make available for the playing squad.

"Obviously success on the pitch for the first team is hugely important for the club. The reality is we will still be operating under some serious financial constraints."

Lampitt has also confirmed that any plan for a new stadium will be placed on hold.

"In the long term I think most people who are associated with the club recognise that they do need an updated stadium facility, but I'm certainly not going to make any promises in that respect."

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