Southend United debt leads to threat of winding-up order (From Echo)

Southend United debt leads to threat of winding-up order

6:00pm Thursday 14th May 2009 in

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SOUTHEND United Football Club has been given a month to pay off a debt or it could face being wound up in the High Court.

The club has denied there is a problem and said the matter has been resolved.

At the court in London, a winding-up petition against the club was adjourned so a debt could be paid.

If the debt is not paid by the date of that hearing, the club could be made the subject of a winding-up order in which its affairs are effectively handed over to an official receiver.

His job is then to do his best to ensure that debts are paid off by selling any assets available.

Property firm Martin Dawn, also owned by Blues boss Ron Martin, was also given a month’s breathing space to avoid a winding-up order.

But the club has accused creditors of “over-reacting” in the current economic situation.

Following the High Court hearing, a statement on behalf of the club was issued by media manager Dave Scriven.

He said: “In the current economic climate, creditors appear to be over reacting to their position.

“In this particular case, which the club considers to be an abuse of the legal process, there is an outstanding debt of £26,000 due to one creditor.

“That creditor holds a deposit, and has done for some time, of £23,500.

“There is no longer a dispute between the two parties and the club considers the matter is at an end.”

Mr Scriven confirmed the petition issued against Martin Dawn related to the same matter and was issued by the same creditor.