High Court strikes out order to have Cork City wound up
The High Court has formally struck out an order for the winding up of the holding company of Cork City Football Club after being informed that the outstanding debt to Revenue has been fully paid.
Today Mr Justice Garrett Sheehan agreed to strike out the order to have Cork City Investment FC wound up after being informed by Dermot Cahill BL for the Revenue Commissioners that the outstanding debt of €439,000 had been "fully discharged."
The court heard that the parties had complied with the terms of an agreement, agreed at the 11th hour at the High Court last Friday, where the club made a down payment of €210,000 with the remaining €219,000 paid to Revenue by close of business yesterday..
The judge also awarded the Revenue Commissioners its costs of the proceedings, which had been adjourned several times over recent months to allow the club deal with the debt.
Mr Rossa Fanning Bl for the club said his clients were happy to consent to that order.
In what was a dramatic day at the High Court last Friday Ms Justice Mary Laffoy had initially confirmed the order, made early last week, to liquidate the company.
The court did so after finding the company was insolvent following the Revenue Commissioners' refusal to accept a down payment from the club, plus certain undertakings to discharge the remainder of the debt.
Ms Justice Laffoy said that the club was insolvent and she had no choice other than to confirm her winding up order.
The judge agreed with Revenue's concerns about the clubs failure to make PRSI and PAYE payments which could have repercussions for the club's employees.
However, that evening, Ms Justice Laffoy agreed to further stay the winding up order to yesterday after she was told by Dermot Cahill, for Revenue, it was prepared to accept an initial payment of €210,000 with the remainder of the debt to be paid by Wednesday. The club is also owed a VAT rebate of €10,000, the court heard.
It had been agreed between the parties that if that payment, due to come from a London-based bank, was not made, Cork City Investment FC would not seek to have the stay on the winding up order extended or appeal the making of the winding up order to the Supreme Court
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, it sought the winding up order.
Cork City FC in a statement welcomed the development and said it was now looking towards the future.
"We are delighted that the Quintas Group has committed to playing an ongoing role in helping us to restructure the club and to manage our affairs going forward," said City spokesman Éanna Buckley,
"We have been overwhelmed by the offers of help and support from companies and individuals across the city and county. The tremendous backing we have received from our players, staff, our loyal supporters and from our sponsors has been a huge help to us, and we wish to express our sincere gratitude to them for this.
"We look forward to tapping in to this support and broadening our skill base as we work to finalize our new business plan based on the realities of the current economic environment."
