Administration essential even if Blues find money.
Southend United should be placed into administration, even if they clear their current tax debt of 238k, the taxman has said.
Catherine Addy, representing HM Revenue and Customs, described the club as "demonstrably insolvent", a persistent defaulter and warned more tax debts were looming.
She said the current debt was for PAYE and national insurance contributions for April and May, but the club were also now late for June. There is further money owed after the club failed to file their May VAT return by the final deadline on Wednesday, she added.
She told the court, on top of tax debts,customs was now aware of other creditors, including players not being paid and unsatisfied county court judgements and next week's looming winding up petition from Charterhouse Commercial Finance, following reports in the Echo.
She said "We would make this application even if this sum had all been fully discharged today in cleared funds.This is a company which is demonstrably insolvent, both on a cash flow and balance sheet basis. This is in effect the third set of insolvency proceedings in the space of 12 months. Even if it was all paid today in cleared funds we would be back again in two or three months"
She said the money to clear the debt had been transferred to a solicitor by a third party, but permission had not yet been given to release it to customs.
The Club did not have the money to pay their debts and creditors had to go to extreme lengths to get their money, with debts only settled at the last minute when it was faced with a winding up petition and using money from a third party. We respectfully submit this is a company in persistent default of ongoing tax liabilities. The financial position of the company is extraordinary she added.
She argued administration would not destroy the football club, but would allow experienced professionals to go in and run the club to sort out their finances. She also pointed out to Echo reports about The Blue Knight consortium wanting to buy the club and their debts for £1 saying there was evidence of a possible buyer to safe-guard the club's future.
However judge, Mr Justice Newey accepted a request from Nigel Brunning club finance director for more time to provide evidence to back up his claims about the club being able to pay their debts..The case was adjourned until August the 2nd.
Part 2 after a cup of tea.
Southend United should be placed into administration, even if they clear their current tax debt of 238k, the taxman has said.
Catherine Addy, representing HM Revenue and Customs, described the club as "demonstrably insolvent", a persistent defaulter and warned more tax debts were looming.
She said the current debt was for PAYE and national insurance contributions for April and May, but the club were also now late for June. There is further money owed after the club failed to file their May VAT return by the final deadline on Wednesday, she added.
She told the court, on top of tax debts,customs was now aware of other creditors, including players not being paid and unsatisfied county court judgements and next week's looming winding up petition from Charterhouse Commercial Finance, following reports in the Echo.
She said "We would make this application even if this sum had all been fully discharged today in cleared funds.This is a company which is demonstrably insolvent, both on a cash flow and balance sheet basis. This is in effect the third set of insolvency proceedings in the space of 12 months. Even if it was all paid today in cleared funds we would be back again in two or three months"
She said the money to clear the debt had been transferred to a solicitor by a third party, but permission had not yet been given to release it to customs.
The Club did not have the money to pay their debts and creditors had to go to extreme lengths to get their money, with debts only settled at the last minute when it was faced with a winding up petition and using money from a third party. We respectfully submit this is a company in persistent default of ongoing tax liabilities. The financial position of the company is extraordinary she added.
She argued administration would not destroy the football club, but would allow experienced professionals to go in and run the club to sort out their finances. She also pointed out to Echo reports about The Blue Knight consortium wanting to buy the club and their debts for £1 saying there was evidence of a possible buyer to safe-guard the club's future.
However judge, Mr Justice Newey accepted a request from Nigel Brunning club finance director for more time to provide evidence to back up his claims about the club being able to pay their debts..The case was adjourned until August the 2nd.
Part 2 after a cup of tea.
