The latest -
Birmingham are struggling to pay their bills and could be forced to sell more players to survive.
Owner Carson Yeung’s assets have been frozen in the Far East pending his money-laundering court case.
And shares in the club’s holding company have been suspended, making it difficult to raise money.
Now, City chief Peter Pannu has admitted the axe will have to fall and unpopular decisions will have to be made when he returns from the Far East - just one week before they kick off their Championship season.
The financial meltdown at St Andrews has left fans fearing they will become the new Portsmouth, less than six months after they celebrated winning the Carling Cup at Wembley.
Yeung’s court case begins on August 11 but acting-chairman Pannu fronted up to Mirror Sport to explain City’s predicament in a candid interview from Hong Kong, where he is trying to find solutions.
He warned: “Upon my return I may have to make some unpopular decisions and I hope the fans will understand that I effectively don’t have a choice.
“The club may need to do what is right and to buy time until Carson’s assets are dislodged from the clutches of the courts in Hong Kong.”
City’s problems mean new boss Chris Hughton faces a daunting task to guide the club straight back to the Premier League.
While Pannu faces a frosty reception from fans when he jets back into the country this weekend ahead of the club’s curtain raiser at Derby next Saturday.
Rival clubs like West Brom are trying to snatch keeper Ben Foster and Liam Ridgewell on the cheap while Stoke want Scott Dann and Cameron Jerome.
Pannu is hoping the club’s headaches will ease once trading in BIHL’s shares resumes.
But even he admits he is unclear how the club will continue to fund itself while Yeung’s assets are frozen and HSBC are demanding Brum’s overdraft is reduced.
Pannu added: “BIHL’s board, headed by Vico Hui and Pauline Wong, are now trying to resume trading of the stock.
“Hopefully the resumption of trading in Hong Kong could lead to raising of some capital for the club to appease HSBC, our bankers, who are also now speaking to Pauline as the group’s financial controller and seeking answers from her on matters of concern to the bankers.
“I hope BIHL’s board can satisfy the bank’s queries as soon as possible.
“An update to the fans is long over due and it is just fair they hear the latest developments from me now.
“But I am not aware of their plans as to how they propose to full fill the financial distress posed by the relegation scenario and the freezing of Carson’s assets in Hong Kong.
“Carson had been trying hard to find new investors but the money laundering charges understandably meant that the progress had been slow.
“I understand that there is one interested party and they are working on it.”
Yeung caused fresh controversy recently by appointing his 18-year-old son Ryan to Birmingham’s board of directors along with Pannu.
Unhappy City fans responded by setting-up a Facebook site: ‘ Petition-to-get-Carson-Yeung-out-and-save-our-club’.
And Pannu admitted: “The appointment of Ryan Yeung was a bit of an eye opener for everybody.
“But I have since learned that with his presence, youth soccer and promotion of interest both in Hong Kong and China could be instigated.
“Ryan will be used mainly in that youth development programme for the greater China market and hopefully could generate some income.
“I believe that there is no hidden agenda there and his youth will not hinder the club’s operations in other areas which I don’t think he will be involved in as he is still schooling.”
Read more:
http://www.mirrorfootball.co.uk/news/Birmingham-financial-meltdown-Carson-Yeung-assets-frozen-player-sale-to-survive-new-Portsmouth-article776447.html#ixzz1TFvd3xbA 
