Portsmouth's troubled season took another dramatic twist last night when Balram Chainrai seized control of the club from Ali al-Faraj, making the Hong Kong businessman the fourth owner at Fratton Park this season, following Sacha Gaydamak, Sulaiman al-Fahim and Faraj.

Chainrai has taken over the 90% shareholding in Portsmouth that was held by Faraj after becoming frustrated that the club had missed deadlines to repay money he was due for substantial loans he gave to them earlier this season.

Chainrai had loaned at least £17m to Faraj to keep Portsmouth afloat through Portpin, the company he owns with his Israeli business partner, Levi Kushnir, and their associates. Those loans were secured against the stadium, the club's future television revenue and Faraj's 90% share.

Angered by Portsmouth's failure to make repayments on the finance, despite Portpin continually extending the deadlines, Chainrai's patience ran out yesterday, and he instructed his lawyers to act. Under the terms of the loan Faraj's 90% shareholding in Portsmouth was frozen and passes to Chainrai. It is understood Faraj may have to instigate court proceedings if he wishes to challenge the move.

Chainrai had expected to receive a sizeable repayment when the Premier League paid all of its 20 clubs a £7m instalment of television revenue early last month. Portsmouth's, though, was withheld by the governing body as the club's dire financial predicament meant they had been unable to pay transfer monies due to English and European clubs. A proportion of these were paid by the league using the television money.

Chainrai travelled to England last month but was unable to secure the repayments. It is thought that he informed Mark Jacob, Portsmouth's executive director, and Daniel Azougy, who oversee Portsmouth in Faraj's continuing absence, of his disquiet then.

Speaking to the Guardian last night Chainrai said: "Portpin have made substantial loans to Portsmouth to try and ensure the club's future. Portpin will [now] continue to work for the best interests of the club." He hopes to appoint two new members to the Portsmouth board today and is intent on stabilising the finances before looking to attract investors.

Faraj turned to Chainrai for money after his takeover from Fahim, via his investment vehicle Falcondrone Limited, in early October. The deal bought Faraj 90%, while Fahim retained the remaining shareholding and became Portsmouth's non-­executive chairman. Faraj's takeover, though, hit almost immediate difficulties. Faraj and his associates struggled to source the finance to keep the club a going concern. They turned to Chainrai who, through Portpin, provided the loans.

It is understood that Chainrai and his associates had continually sought a meeting with Faraj to discuss the issue of ­repayments. But Faraj, a Saudi Arabian businessman, has never visited Portsmouth since he took over and Chainrai was unable to secure face-to-face talks.

Despite being Faraj's lawyer Jacob has also admitted he has never met his client. Chainrai was yesterday in London, where he held a series of meetings before overseeing the move to freeze Faraj's holding in Portsmouth.

Portsmouth, who lost 1-0 at Fulham last night, have endured a financially stricken season which has included failing to pay their players on time on four occasions – once under Fahim's ownership and on three occasions after Faraj took control. Yesterday the club confirmed the players had finally received their January salaries, five days after last Friday's due day.

Portsmouth are also fighting a winding-up petition served on the club by Her Majesty's Revenue and Customs before Christmas, which will be heard in the high court on 10 February and could send the club into administration.

Portsmouth are due in court to appeal against the petition before the hearing next Wednesday. Chainrai appealed to HMRC to understand the club's financial predicament. He said: "To help Portsmouth succeed we need the support and understanding of Her Majesty's Revenue to work out a solution."

Beyond Chainrai, who is said to share the concern of Portsmouth fans regarding the club's direction, Gaydamak is also owed at least £28m, of which a £9m instalment due at midnight last Sunday was missed by Faraj.

Gaydamak has described himself as a soft creditor who is currently refusing to demand repayment, as that would almost certainly force Portsmouth into administration. Chainrai, too, wishes to avoid that eventuality.

Last night Portsmouth declined to comment. It is understood Gaydamak was unaware of Chainrai's intervention.