Llanelli AFC has managed to avert a third winding up order by the taxman in is six months at the High Court in London.
The Reds have won a 28 day reprieve to allow debt to be paid in full, or for the club to seek liquidation.
Her Majesty’s Revenue and Customs (HMRC) wanted to wind up the club, however, the Reds dispute the size of the tax debt.
Counsel Catherine Addy has pressed for a “usual compulsory order” winding up Llanelli AFC Ltd.
BBC South West Wales reports that Lewis Preston, acting for the Reds said there was an “ongoing dispute” about the extent of the liability.
“Negotiations have been entered into with HMRC,” he said.
“It relates to National Insurance contributions and we have sent the appropriate Paye information to them.”
He also said a director of the company had paid £3,000 to “ameliorate the position” and that the director has spoken to a liquidator in case a Creditors Voluntary Liquidation (CVL) or Company Voluntary Arrangement (CVA)wais necessary.
Mr Preston asked for an adjournment to ascertain the size of the debt and pay it in full or allow a CVL or CVA to take place.
Two previous winding up petitions brought by HMRC were dismissed in September and November last year.
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