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Southend United pays HMRC tax debt ending istration fears

Shivani Chaudhari and Tom Larsen-Wright
BBC News, Essex
Emma Baugh/BBC Southend United protestEmma Baugh/BBC
The judge withdrew the winding-up petition on the basis HMRC's legal fees were covered

A winding-up petition that threatened to end Southend United's 116-year history has been dismissed after the High Court was told the football club had paid off its tax debt.

The club owed an estimated £275,000 to HM Revenue and Customs (HMRC).

However, an HMRC representative told the High Court it had been paid in full and asked the judge to withdraw its petition.

Separately, Blues announced on Tuesday it had agreed the sale of the club.

Rex Features Southend United chairman Ron MartinRex Features
Chairman and owner Ron Martin, and club chief executive Tom Lawrence, were both at the High Court

Charlotte Cooke, appearing at an insolvency and companies hearing on behalf of HMRC, said: "My instructions are that the petition debt has been paid in full and we seek dismissal with costs."

In what amounted to only a 60-second hearing, Judge Nicholas Briggs concluded: "Very well, dismissed with costs."

Owner and chairman, Ron Martin, and club chief executive, Tom Lawrence, were both at the court.

Southend United FC Justin Rees heads the consortium that has agreed to buy SouthendSouthend United FC
Justin Rees was the co-founder of Sydney-based company Eighty20 Solutions

The latest winding-up petition had already been adjourned three times, while Mr Martin sought bridging finance to cover the debt.

The BBC understands some of staff went four months without being paid last season.

He previously referred to the financial troubles as "legacy debt" and pledged he would never place the club in istration.

At almost the eleventh hour before the hearing, at 16:40 BST on Tuesday, the club announced it was being sold to a consortium headed by Australian businessman Justin Rees.

The team was already docked 10 points by the National League in August because of the debt.

The Shrimpers beat Oxford City 2-0 on Tuesday night, to lift them to 21st place and within a point of safety from the relegation zone.

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