THE COMPANY that owns Portsmouth FC are the subject of insolvency proceedings, it has been revealed.

Convers Sports Initiatives (CSI) are understood to have had a charge levied against them by Portpin, the company owned by the previous owner of Pompey, Balram Chainrai.

This makes Portpin a secured creditor over CSI, who are believed to have been paying for the club in instalments.

Rumours had been circulating that CSI could be in trouble, following the arrest of joint-owner Vladimir Antonov last week, in connection with the Lithuanian bank Snoras.

The administrators that oversee Portsmouth's last period in financial turmoil, UHY Hacker Young, have been appointed to run CSI's administration.

Pompey said in a statement this afternoon that Mr Antonov had resigned as chairman and director of the club, which has not itself been placed in administration.

It is not yet clear whether not the move will result in Portsmouth being deducted points in the Championship.

However, Saints were deducted points in 2009 when parent company Southampton Leisure Holdings PLC went into administration.

In a statement, Pompey said: "Portsmouth Football Club (2010) Limited – the company that operates PFC – is not in administration and continues to trade.

"The club has funding in place for the short term, but will now be seeking alternative investment for its longer-term requirements."

Pompey chief executive David Lampitt said: "After the extraordinary amount of work put in by so many people over the last 18 months to get to this point, it is incredibly disappointing for the club to find itself in this position.

"I want to assure staff and fans that we will continue to do everything possible to safeguard the position of the club and its longer term future."