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Page last updated at 11:38 GMT, Thursday, 8 July 2010 12:38 UK

Southend United given stay of execution

Southend United

Southend United have 14 days to avoid administration after an order brought by Her Majesty's Revenue and Customs.

The Shrimpers have faced two insolvency proceedings in the last 12 months and were in the High Court on Thursday over an unpaid tax bill of £238,710.

The club must now submit evidence that they are financially viable to avoid administration on 2 August.

They also face a winding-up petition next week from Charterhouse Commercial Finance over a £140,000 debt.

HMRC told the Court that Southend's history of defaulting on payments demonstrated they were insolvent.

However the club argued that they had paid all their previous bills, albeit late, and that they would be in line for a £186,000 payment from a sell-on clause in former midfielder Nicky Bailey's contract after he joined Middlesbrough on Wednesday.

Southend also argued that they have made significant strides to put the club on a firmer footing.

Paul Sturrock's side, who were relegated from League One last season, have struggled with off-field issues over the last year and avoided a winding-up order in April after settling a £400,000 unpaid tax bill to HMRC.

The club were also taken to the High Court in November, but escaped being placed into administration after paying HMRC £690,000.



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