An application to wind up Cork City has been adjourned after the High Court was told that negotiations are underway to sell the club.
On that basis, Ms Justice Mary Laffoy put back for two weeks proceedings by the Revenue Commissioners to wind up the club over an outstanding Vat, PAYE and PRSI bill of €115,906. She agreed with the Revenue the adjournment should be on a peremptory basis against the club and added it might benefit the Revenue.
Last July, a similar winding up move was averted when the club came to an arrangement with the Revenue over a similar tax bill of €439,000.
Counsel for Cork City Investment FC Ltd, the club’s owners, asked the judge for the adjournment to allow negotiations for the sale of the club to be held. A written offer to buy it had been received, the court heard.
The club had to have its debts paid off to get its operating licence from the FAI, counsel said.
The owner of the club, Tom Coughlan, had issued a statement last week confirming that finance group Quintas was involved in talks to buy the club along with local businessman Michael O’Connell.
Coughlan failed last week in a High Court bid to overturn a 12-month ban by an FAI disciplinary committee finding of bringing the game into disrepute.
The committee found he did so by failing to pay employees on time and to meet his obligations to Revenue. Among his other failures were that he did not pay insurance premiums on time, failed to pay ESB resulting in supply being cut off, bounced cheques to referees and Revenue, and failed to pay transport costs for the club.
In his statement last week announcing negotiations to sell the club, Mr Coughlan said it required a further investment of approximately €430,000 to cover the day-to-day running.
With new investment, cuts in expenditure and a new manager, Roddy Collins, the club would be well positioned to have “a great year on an off the field,” Mr Coughlan said.