Cardiff given more time over tax

Last updated : 06 May 2010 By BBC Sport

Cardiff City football club has been given more time to pay a £1.9m debt to HM Revenue and Customs (HMRC).The case at London's High Court has been adjourned for 42 days to enable the championship club to settle its tax bill or face the threat of winding up.

Lawyers for HMRC asked for the adjournment so the tax debt could be paid "in full".

The club was given a "last chance" at a court appearance in March but received more time as investment was imminent.

Counsel for HMRC had argued at the previous hearing that the club should be wound up immediately, saying that it was "plainly insolvent".

Chairman Peter Ridsdale is leaving Cardiff City at the end of the monthBut the club's lawyers told the judge then that an Asian investor had already put £500,000 into the Bluebirds and had indicated he would give it £6m.

Malaysian businessman Datuk Chan Tien Ghee is planning the investment, which would give him a 49% shareholding in the club.

Mr Ghee became a director last December.

The judge had previously warned that if the full £1.9m was not paid, the club was likely to be wound up.

But HMRC on Wednesday instead asked for an adjournment to give Cardiff City more time to settle the debt.

Last week, City chairman Peter Ridsdale announced he would be leaving the club at the end of May, after succeeding Sam Hammam in 2006.

In a statement last week, the club said: "Agreement has been reached with regard to new funding for the company and restructuring of its existing debt.

"As a result of this new fundraising, Peter Ridsdale will be standing down from his position and leaving the company on 31 May 2010."

On the field, the Bluebirds have reached the play-off semi-finals, with a chance of promotion to the Premiership later this month.

Source: BBC Sport

Source: BBC Sport