Cardiff Face Another Winding Up Order

Financially troubled football club Cardiff City has had yet another winding up petition served against it, once again from HMRC, just two months after the arrival of Far Eastern Investors saved the club from going under.

HMRC had previously submitted a petition regarding a £2m outstanding tax bill, the hearing was adjourned as club officials convinced the judge that investment was coming in.  Many experts believed this promise of investment was a fabrication and the club were secretly hoping that they would gain promotion to the Premier League.

However, these fears proved nothing but conspiracy as a consortium, led by tycoon Dato Chan Tien Ghee, later bought a 39% stake in the club and paid of the outstanding debts to HMRC.

The latest petition now comes as a shock to fans who had previously believed their future was no longer in the balance.  The new hearing has been set for 13 August.

The club have quickly moved to deny the fact they are once again in trouble and have blamed poor cash flow as they recover their financial position, a statement on the club’s official by chief executive Gethin Jenkins said, “Cardiff City Football Club fully expect to pay monies owed in the forthcoming week, following which the petition will naturally be withdrawn.

"This hurdle all forms part of the ongoing process of getting the club on a sound business and financial footing."

This will also allow the club to avoid a transfer embargo. Under FA rules, clubs can be stopped from registering any new players during the transfer windows if they have outstanding and overdue debts.

Posted at 01:46PM Jul 05, 2010 by Marc Stenton in Insolvency  |  Comments[0]