Cardiff City given deadline to settle £2m tax bill
Cardiff City have been given one last chance by the High Court to settle an outstanding tax bill.
The Championship club were facing their third winding-up order on Wednesday over a £1.9m debt to Her Majesty's Revenue and Customs (HMRC).
Cardiff hope to raise an estimated £2.25m from the sale of two plots of land around the Cardiff City Stadium.
A deadline of 5 May, three days after the final game of the regular season, has now been set to fully pay the debt.
Counsel Matthew Smith for HMRC had argued that the club should be wound up immediately, saying that it is "plainly insolvent".
The second winding-up order in the High Court was adjourned for 28 days in February after Cardiff paid £1m towards the tax bill, which then stood at £2.7m.
We are confident that these funds are coming in
Cardiff City representative Elaine Palser
Half of the remaining £1.7m was paid on Tuesday, leaving £850,000. However, the HMRC counsel said club the payment was only possible after the club had defaulted on its ongoing obligations to pay PAYE and VAT.
Consequently, the total debt now stands at £1.9m.
Cardiff representative, Elaine Palser, argued the club was solvent and that an Asian businessman, who has already invested £500,000 into the club, "has indicated he will give it £6million".
"We are confident that these funds are coming in," she said. "This is not an insolvent company. There is £36m of net assets, and the players are worth about £30m."
Granting one last adjournment of the hearing, the Registrar said: "On the face of it this company is not able to pay its debts as they fall due.
"The only basis, I'm being told, on which there is a prospect of this being resolved is through a third-party investor, but there is no evidence before the court.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.