BLUES fans fearing financial meltdown in the aftermath of Carson Yeung’s arrest and the freezing of his assets were reassured today: “All is not lost.”

Financial expert Peter Knowles calmed fears of a possible pre-season collapse into administration – and said several potential cash lifelines were available to club owners Birmingham International Holdings.

Mr Knowles, of stockbrokers Park Square, said club bankers HSBC were unlikely to pull the plug whilst the security for any loan was the land at St Andrew’s.

Doing this would throw the whole future of the club into doubt, and also make it difficult for the bank to recover its cash.

And he said a share rights issue to raise more funds for Blues via the parent company – or even a full takeover – was possible despite the group’s continuing shares suspension on the Hong Kong Stock Exchange.

Mr Knowles said: “I think talk of administration is totally premature. In any case, Birmingham City is a large enough football club for somebody else to come in and take it over, although the slight complication is that it is listed on the Hong Kong Stock Exchange.”

Fears of financial disaster with the new season less than a month away have increased after Carson Yeung’s right-hand man Peter Pannu warned that club bankers HSBC were speaking to group financial controller Pauline Wong over “matters of concern”.

Mr Pannu 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 the stock.”

A summer player exodus has already raised alarms among fans, with Barry Ferguson and Kevin Phillips joining Blackpool and Craig Gardner sold to Sunderland for £5 million.