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Last Updated: Tuesday, 1 June, 2004, 12:22 GMT 13:22 UK
Inland revenue drops club claim
Exeter City's St James' Park ground
Exeter City reached agreement with creditors in October
The future of Exeter City Football Club has become more secure after the dropping of a financial claim by the Inland Revenue against the club.

Last October the club agreed a deal with the majority of its creditors over debts of about 4m.

But the Inland Revenue, which was owed about 350,000, had threatened to go to court to challenge the agreement.

In the Corporate Voluntary Arrangement (CVA), creditors are receiving 10 pence in the pound over five years.

'Legal wrangles'

The Inland Revenue launched a challenge against the CVA as it believed the football creditors' part of the agreement was unlawful, and a hearing was due to take place on 19 July.

The Inland Revenue refused to comment on its decision to drop the case, but City managing director Ian Huxham described the news as "wonderful".

He said: "It's terrific news and we can now look forward with the knowledge we don't face any more legal wrangles."

"This had been like a cloud hanging over the club."

However, they club still has a long way to go to clear its money worries.

It currently has to pay off 400,000 of its debt within 18 months or it will go out of business.




SEE ALSO:
Club challenges league rules
05 Dec 03  |  Devon
Club faces court challenge
26 Nov 03  |  Devon
Club seeks government help
05 Nov 03  |  Devon
Club's immediate future secure
16 Oct 03  |  Devon
Fans take over struggling club
05 Sep 03  |  Devon


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