31 October 2011

City given lifeline to stay in business

Source: This is Cornwall LINK by Rhod Mitchell

Truro City FC today won breathing space at London's High Court this morning until the New Year from moves by the taxman to wind it up over unpaid debts.

Registrar Baister adjourned the petition brought by Her Majesty's Revenue and Customs against the club - which has advanced quickly up the leagues thanks to five promotions in six years, including winning the Zamaretto Southern League championship last season - until 16 January 2012 to give it time to pay.

Matthew Smith, counsel for HMRC, had sought an order winding up the club, telling the Registrar that it had made only a modest reduction in its undisclosed debt which is believed to be well into six figures.

However, Stephen Schaw Miller, counsel for the club, told him that the position is that a related company is raising funds by potentially selling property, and might grant a third party an option to purchase the Treyew Road Stadium where the club plays its home matches.

He added: "There is also a possibility of outside investors investing in the club which will enable the debt to be paid."

In the light of that, and because it is the first time the winding up application has reached the court, the Registrar adjourned it until 16 January for "settlement" of the debt.

Failure to clear the debt by that date will likely lead to the club being wound up at the next hearing. This would effectively hand over the club's affairs to an Official Receiver, whose job would then be to do his best to ensure that debts are paid off by selling any assets available and then bringing business to a close.
City vice-chairman Chris Webb said:   "So its business as usual and we are  looking forward to seeing everyone at home to Welling this Saturday."


One would hope that the tax bill can be paid before the 16th January, but just as importantly, what about the player's unpaid wages, the groundsman's wages, the ground upgrading etc.  It's worrying when we have to rely on "outside investors" and third party deals.  The latter though would seem highly unlikely.  Chris Webb's statement "so it's business as usual" is worrying to say the least as this implies that very little is wrong.  The popular Tiger Talk forum has called for the Club to hold an open meeting to answer the many questions that the supporters would like answers to. The Club is for sure going through difficult times.  The only way forward will be openness, honesty and working together but it requires the Management to instigate this.

No comments:

Post a Comment