Portsmouth Football Club (PFC) has successfully seen off a legal challenge from HM Revenue and Customs' (HMRC) over the club's planned Company Voluntary Agreement (CVA).

HMRC sought to block the agreement after claiming that it is owed £37m by the npower Championship club, which would be enough for it to overturn a decision by creditors to accept an offer of 20p in every pound owed. However, Mr Justice Mann ruled in favour of PFC at London's High Court on 5 August, which will now allow the CVA to proceed and help the club to exit administration. HMRC said it would not appeal the decision.

PFC chief executive David Lampitt said: "We will wait to see the detailed findings. However, it's obviously a massive step forward in the process towards getting the club back on its feet. "The result is a huge relief to the staff here whose loyalty has been unswerving and whose hard work has held the club together."

A HMRC spokesperson added: "HMRC is naturally disappointed not to have won this appeal, however, we can confirm that we do not intend to appeal further. "Our aim when pursuing debt of any kind is to achieve a fair outcome for the taxpayer and we will take this forward in the wider context of the football industry through the separate and outstanding legal proceedings over the status of the Football Creditors Rule."

Meanwhile, speculation is ongoing over the identities of potential bidders for Liverpool Football Club (LFC), with China-based businessman Kenny Huang denying reports he is looking to acquire the club. Huang issued a statement earlier this week refuting claims he had made a formal bid. Meanwhile, reports that Huang is being backed by state-owned China Investment Corporation have also been denied.

A CIC source told the Financial Times that the corporation would not be interested in "such a high-profile, symbolic and potentially risky deal". Image: Ben Hardinge/Flickr