Blues' cash crisis puts off investors

Birmingham's acting chairman Peter Pannu has claimed criminal charges brought against the club's owner Carson Yeung are hampering efforts to find new investment.

Blues' parent company, Birmingham International Holdings Limited (BIHL), have been unable to trade on the Hong Kong stock exchange since Yeung's arrest last month.

Yeung is due to appear in court in August to face charges on five counts of money laundering, covering a six-year period from 2001.

The 61-year-old is the largest shareholder with a 26.3 per cent stake, has had his assets frozen and Pannu concedes the club's bankers are "concerned."

He said: "Carson has been trying hard to find new investors, but the money laundering charges understandably meant that the progress has been slow.

"I understand there is one interested party and they are working on it and BIHL's board are now trying to resume trading of stock.

"Hopefully the resumption of trading in Hong Kong could lead to the raising of some capital to appease HSBC, our bankers.

"They are speaking to Pauline Wong, as the group's financial controller, and seeking answers from her on matters of concern."