Plymouth Argyle Handed Two-Month Debt Clearing Life-line
December 9, 2010
English nPower League One soccer club Plymouth Argyle have been given two months to clear debts of £760,000 with HM Revenue and Customs. A High Court judge ruled that the club, along with Home Park Properties should be given time to make the payments after facing winding-up petitions over the debts.
The registrar was in a generous mood by giving the club 63 days to complete the clearance after the club had only asked for 56 at a hearing on December 8. The club revealed that they have found an investor who is willing to put £500,000 towards the debt as well as being in the process of refinancing.
It also claimed that the £760,000 tax bill was too high and payments could be made to reduce it to £280,000 in January. Plymouth Argyle claim to have £140,000 available to them in a bank account as well as being owed an additional £48,000 by the Football League with the money going directly to HMRC.
Players may well be sold in the January transfer window to raise extra funds to help clear the clubs debt.
Following the hearing, a statement on the club’s website said: “The board and its advisers are continuing to work through a number of potential answers in order to put the club on a sound financial footing.
“We are advised not to make any further comment at this time.
“When we have anything more to say, we will advise you.”
The club’s bank account was frozen after being issued with a winding-up petition on October 23 which led to the players and backroom staff not receiving their wages. The club will now seek a validation order from the courts to un-freeze its bank account and allow payments to be made.