Speaking to the UK Express, the City manager said: "It is not nice to see a club like this in this situation. Less than 18 months ago, they were winning the FA Cup, so it is especially disappointing if you are a Portsmouth fan.
"A few seasons ago, Coventry went through a similar spell and we have only just stabilised it. Financially, we are one of the only clubs in the country who don't have an overdraft. We don't owe the bank any money.
"We are still adding to the team, but we don't have the team in place yet to get us into the Premier League. But at our club everything else is in place. We are stable in terms of finances and the last piece of the jigsaw is the squad we are trying to build."
Whist, City don't owe the bank any money, they do have creditors, some of whom, will have to paid if and when the Sky Blues are promoted to the Premier League and are currently trading with losses of around £4m a year.