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Feb, 10, 2010

Cardiff granted 28-day reprieve over unpaid tax

Cardiff City were handed month-long stay of execution on Wednesday, as their winding-up order was adjourned for 28 days by the High Court in London.

The Championship club were facing their second order over an unpaid tax bill of around £2.7 million to Her Majesty's Revenue and Customs (HMRC).

City had been in discussions with HMRC over the debt but a compromise between the two parties could not be reached. However, the High Court has given the club more time to resolve the issue.

The club confirmed they paid £1 million to HMRC on Tuesday in part-settlement of the club's unpaid tax bill, but did not come up with the full amount.

"Cardiff City have had a winding-up order adjourned for 28 days by the High Court in London," A statement on the club's official website said.

"During a short hearing, the court heard that the club had paid £1million to Her Majesty's Revenue and Customs in part settlement of a tax debt.

"This payment had been made on Tuesday February 9 and HMRC had no objection to the club's request for a 28-day extension to pay off the balance. Cardiff City chairman and chief executive Peter Ridsdale was in court to hear the decision.''

The Bluebirds could face administration and a 10-point deduction should a winding-up order be made.

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