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Page last updated at 10:19 GMT, Wednesday, 16 June 2010 11:19 UK

Court confirms Cardiff City's 1.9m tax payment

Cardiff City supporters
Cardiff enjoyed their best season for almost 50 years on the field in 2009/10

Cardiff City have had their winding up petition against them dropped at the High Court after the club paid their £1.9m tax bill.

The Championship club revealed last week they had paid the debt to Her Majesty's Revenue and Customs after a £6m boost from a Malaysian consortium.

And at their fifth appearance at the High Court, Mr Registrar Simmonds dismissed the petition for unpaid tax.

HMRC's lawyers requested to drop the case and Cardiff will pay legal costs.

Wednesday's brief High Court appearance in London is a landmark day for Cardiff as it brings to an end a tumultuous seven months in the history for the Welsh club.

The Bluebirds were under a financial cloud for the most part of last season with a total debt of up to £30m, but manager Dave Jones' team still enjoyed their best season for almost 50 years and narrowly missed out on Premier League promotion after a 3-2 defeat in May's Championship play-off final to Blackpool.

A Malaysian-based consortium - backed by billionaire businessman Tan Sri Vincent Tan Chee Yioun - has seemingly saved the club with a £6m investment.

Dato Chan Tien Ghee and Peter Ridsdale
Dato Chan Tien Ghee replaced Peter Ridsdale as Cardiff chairman

Cardiff have confirmed that the transfer embargo hanging over them can now be removed.

The club's new chief executive Gethin Jenkins said: "It is a good news that the petition has been discharged.

"We are pleased that we have paid that bill and now we will try to build a solid business foundation from which the club and the team can operate.

"We have to work through all of our other debts and work with our creditors. We're doing that solely but surely.

"We have a lot more work to do to get the business on a sound business platform but it is the first hurdle cleared.

"Hopefully this is the start of a new beginning for the club as we have new investors, new directors and myself recently arrived to take the club forward.

"We can now look forward to the season and to develop our ongoing recruitment plans."

Cardiff's financial plight became evident in December 2009 when the first Malaysian financial injection was made to stave off the first winding-up order as head of the consortium Dato Chan Tien Ghee was appointed onto the club's board of directors.

The Bluebirds did reach a settlement over their long-standing £15m debt to former owner Sam Hammam's Langston Corporation in December.

Cardiff's former chairman Peter Ridsdale paid further visits to the High Court because of the tax bill - which threatened the club with potential administration and a 10-point deduction - and the club were told in March it was their "last chance" to pay the £1.9m liability.

Cardiff sold two plots of undeveloped land around their new Cardiff City Stadium - raising a reported £1.5m - while fans protested against Ridsdale's handing of club affairs following a game against Doncaster Rovers.

But at their 5 May hearing, Cardiff were handed another reprieve as the High Court was satisfied that a full settlement was imminent from the club's promised far eastern investment.

The £6m Malaysian financial injection was confirmed at an extraordinary general meeting of Cardiff's shareholders in May which ended the controversial five-year reign of Ridsdale in south Wales as Chan was named as his successor.

Malaysian property magnate Tan, worth a reported £800m, is the power behind Cardiff's new regime, which now owns around 30% of the club's shares.



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see also
Cardiff City pay off 1.9m debt
10 Jun 10 |  Cardiff
Cardiff's 6m investment approved
27 May 10 |  Cardiff
Cardiff given more time over tax
05 May 10 |  South east
Cardiff facing final tax deadline
05 May 10 |  South east
Ridsdale to step down at Cardiff
30 Apr 10 |  Cardiff
New Cardiff investment 'by April'
19 Mar 10 |  Cardiff
Hundreds join Cardiff fans' march
06 Mar 10 |  Wales
Cardiff win land sale green light
24 Feb 10 |  Cardiff
Cardiff winding-up order delayed
10 Feb 10 |  Cardiff
Cardiff fans hold finance protest
30 Jan 10 |  Wales
Cardiff cash halts winding-up bid
25 Nov 09 |  Cardiff


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