Southend United: Winding-up petition adjourned ahead of club sale
Image source, Rex Features
Image caption,
Australian businessman Justin Rees, who leads the consortium purchasing Southend United, attended the hearing
A winding-up petition issued against Southend United in the High Court has been adjourned for four weeks.
Legal firm Stewarts Law LLP filed the petition in February over unpaid bills, after it represented the club in previous court disputes.
Blues chairman Ron Martin asked for the petition to be adjourned to allow its sale to a consortium to be completed, which would allow the money to be paid.
During a two-minute hearing, the case was adjourned until 15 May.
Barristers representing Stewarts and two of the club's creditors told Insolvency and Companies Court Judge Catherine Burton that they agreed to the adjournment.
Australian businessman Justin Rees, who leads the consortium purchasing Southend United, was also at the hearing.
Image caption,
The Roots Hall side's 117-year history has been under threat in the past year
In an earlier hearing on Monday, Judge Burton approved a validation order allowing the club to continue trading.
She said that while funding was available, creditors could not be paid due to the club's bank account being frozen after the issuing of the petition.
She added that it was hoped the sale of the club would be "concluded during the course of May" and that it "must continue to trade".
Image caption,
A winding-up petition has been adjourned at the High Court
The club's first team competes in the National League, the fifth tier of English men's football.
Known as the Shrimpers, the side was relegated from the English Football League for the first time in 101 years in 2021 and was issued with a number of winding-up petitions over unpaid tax in recent years by HM Revenue and Customs (HMRC).
It avoided being wound up in the High Court in October last year after paying off a £275,000 debt, following the agreement to sell the club to the consortium.
Speaking to the BBC earlier this month, outgoing chairman Mr Martin said he expects to have sold the club by the middle of May.
He said he was sorry for the "tough time" Blues fans had faced during more than a year of uncertainty.
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