SOUTHEND United have been given the go-ahead to pay football-related debts so they can remain in the National League.

A specialist court heard on Friday that the non-league club has existing debts of £2.5 million, about £300,000 of which is owed to football creditors.

The remaining amount is owed to other creditors including HM Revenue and Customs (HMRC), which issued a winding-up petition against Southend over a £275,000 tax debt, and energy supplier Npower.

Judge Mark Mullen approved payments of more than £300,000 at Friday’s hearing, which will allow the club to keep its licence and remain in the National League.

Chairman Ron Martin gave an undertaking to the judge that he would notify the remaining creditors of the payment in order to secure the court’s approval.

He told the court the club was ready to pay £250,000 to its football creditors, and that a further £52,000 has been obtained from the Premier League for academy players.

The payment had to be approved by the court due to the club being insolvent, and the judge said any further prospective payments would also have to be notified to outstanding creditors and approved in the same way.

Mr Martin said the club has also been able to agree a payment plan with Npower, and that the first instalment is due to be paid next week.

The court has previously heard the club is hopeful of negotiating a sale to end its financial struggles.

Southend – who dropped out of the dropped out of the Football League at the end of the 2020/21 season – have been before the courts a number of times in recent months, with an order being made in May to ensure the club’s survival by allowing the payment of players and accountants.

Addressing the judge, Mr Martin, who has been in charge of the club for 25 years, said: “I’m sorry I keep coming before you, but it is coming to an end.”

A further hearing is due to take place on August 23.