The hearing began at around 10am with HMRC finishing the case they stated yesterday to Mr Justice Mann. Gregory Mitchell QC opened by stating that the CVA is in dispute because Sacha Gaydamak still owns the land surrounding Fratton Park, with the car park being used as a "ransom strip".
It was also said by HMRC that if the CVA was passed, Balram Chainrai would likely become the new owner of Portsmouth FC but the club wouldn't be in a better situation because Chainrai and Gaydamak are in conflict with each other. I think HMRC might be clutching at straws there...
Mitchell attacked the football creditor's rule again, saying "it's simply wrong." He also stated that if HMRC won the appeal that liquidation of Portsmouth FC "would not be inevitable". (A point that would be argued later.)
Richard Sheldon QC, representing Portsmouth FC began the defence by stating that the other 19 Premier League clubs wanted Pompey booted out of the league and divide their share of the TV money amongst themselves.
It was only because of the intervention from Premier League Chief Executive Richard Scudamore, where he was able to persuade the other clubs to allow Pompey's parachute payments to be paid early, that Pompey were saved.
I have to dispute Sheldon's statement about the other Premier League clubs wanting us to be kicked out.
I certainly remember West Ham co-owner David Gold stating that he would loan Pompey the money to stave off liquidation as that would mean all of the club's results being expunged from the league, deducting the relegation threatened Hammers 4 points that they desperately needed at the time.
The hearing was adjourned as the court had to decide whether players that were owed money by the club could be counted as creditors and therefore allowed to vote on the CVA. The hearing resumed at 2pm, where Sheldon put his case forward for why players should be included in the CVA.
The basics of his argument were simply that if the CVA was agreed then it would be in the best interests of the players as they'd be able to continue receiving their wages from Premier League cash (parachute payments).
If the players were paid using CVA funds then they would become free agents and therefore would be unsecured creditors, meaning they'd lose the benefits of being a secured creditor, which to my knowledge means they wouldn't be paid what they are owed in full.
The most daunting statement of the hearing came when Sheldon stated that if HMRC won the appeal then club would "in all likelihood go into liquidation" and he added that there was no other purchaser for the club other than Chainrai.
The case was adjourned for the day and Mr Justice Mann said that he would deliver his verdict at no earlier than 3pm tomorrow and that it may be an "executive summary" and not his full judgement.
He also asked if both sides whether they would consider an appeal in the Court of Appeal on Friday. Both said they "probably would", meaning this saga is guaranteed to go on longer than anticipated already.
The two big issues to come out of today was firstly, the revelation that not all of Pompey's creditors may actually be counted as creditors, which could swing the CVA in favour of HMRC.
Secondly, even if the CVA is passed it looks like we'll be stuck with Balram Chainrai as the new owner as the QC stated that he was the only owner lying in wait to buy the club. This greatly contradicts everything Andrew Andronikou has been telling the fans over the past few months about other possible new owners.
I expect that this case won't be resolved come tomorrow and us Pompey fans will be made to wait even longer before we're either able to breathe a sigh of relief or be put out of our misery for good.