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Southend United facing administration

By Pete Hayman    27 Oct 2009

Southend United Football Club (SUFC) is facing the prospect of being placed into administration by HM Revenue and Customs (HMRC) after failing to settle an unpaid tax bill.

The club had been due to hear a winding up petition at the High Court on 28 October, but HMRC has now changed its position and is seeking appointment of administrators to take over the management of the Coca-Cola League One club at a hearing on 4 November. SUFC chair Ron Martin said that, while the club aims to pay off all of its debt in full, it has been hindered by the collapse of the banking sector in summer 2008, as well as the £1.9m incurred by the planning and inquiry into the club's proposed new stadium.

Martin said: "This is not a viability issue for the financial planning is very sound but we have needed time to overcome the banks' inability to lend since their collapse in the summer of 2008. "Prior to this everything was on track and it has taken the year to get back to our advanced position. Therefore, HMRC's hostile action is not only unwelcome but also destructive."

Meanwhile, Chester City Football Club (CCFC) has been handed more time to satisfy the conditions of its membership of the Football Conference after league officials agreed to extend the club's deadline. On 21 October, the Football Conference announced the club had been given until 26 October to meet the payment terms of a compromise agreement that allowed CCFC to compete in the 2009-10 Blue Square Premier season or face expulsion.

The club had also been issued with demands for payment to both Wrexham Football Club - relating to away ticket sales for a fixture on 27 September - and Vauxhall Motors Football Club for the loan of a player. However, in a statement, the Football Conference said that talks were set to continue in order to find a satisfactory resolution. A new deadline of 16 November has also been imposed.

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