Cork City earn last-minute reprieve

Cork City FC have secured a last minute reprieve from a High Court order to have the club wound up.

The court initially confirmed last Monday's order to liquidate the club's holding company Cork City Investments FC after finding the company was insolvent following the Revenue Commissioner's refusal to accept a payment from the club of €210,000 plus certain undertakings to discharge the remainder of the debt of €439,000.

However, this evening Ms Justice Mary Laffoy heard that from Dermott Cahill Bl for Revenue that it was prepared to accept an initial payment of €210,000.

In addition, the remainder of the debt, €219,000, is to be paid by the close of business next Wednesday afternoon. The club is also owed a VAT rebate of €10,000.

Mr Cahill said that once the final payment is made the winding up order could be vacated.

It was further agreed that if that payment, which the court heard is to come from a London-based bank, is not made Cork City Investment FC would not seek to have the stay extended, nor appeal the making of the winding up order to the Supreme Court.

The judge said that in light of the acceptance of that proposal she was happy to continue the stay to Thursday, when the matter would be mentioned before the duty judge at the High Court.

The judge said that she was delighted that the matter had been resolved.

Earlier, Rossa Fanning Bl for the club said the club a proposed payment of €210,000 plus undertakings from the club and the FAI that proceeds from a friendly against Glasgow Celtic and money from the club's participation in either Setanta Cup or European Competition would be paid in ease of the debt.

However that was not acceptable to Revenue.

The judge, who agreed with Revenue's concerns about the clubs failure to make PRSI and PAYE payments which could have repercussions for the club's employees, said she had no choice other than to confirm her winding up order.

She refused an application by Mr Fanning to continue the stay.

The Judge said that she could "not force a compromise" and the company was insolvent.

However she asked Revenue to consider its position and the dividend it would receive in a winding-up situation.

"A bird in the hand is worth two in the bush," she said.

The judge also said that Revenue could not be seen as "being soft" in this situation.

The judge extended the stay on the winding up order until 4pm today in the event that arrangements could be agreed between the parties.

Shortly after 4.30pm Mr Cahill told the court that a proposal that all of the outstanding debt would be cleared by next week had been agreed by Revenue.

The club was taken out of examinership last October after a scheme of survival was approved by the High Court under which significant investment was promised. Creditors, including the Revenue, were also to receive a percentage of the money owed to them.

In its winding-up petition Revenue claimed it has received only part of dividend monies and other taxes due to it under the survival scheme and, in those circumstances, sought a winding-up order.

The matter had been adjourned several times to allow the parties reach an agreement.

On Monday the club had €110,000 in court, and had offered to pay off the remainder of the debt in monthly installments of €24,000 over the next 12 months, which Revenue refused.