Wed Feb 10, 2010 3:03 pm
Portsmouth have been given a seven-day stay of execution after getting more time to fight a winding-up petition.
The club now has until 1600 GMT on 17 February to file a "statement of financial affairs" proving it will be able to pay its creditors.
Her Majesty's Revenue and Customs had taken Portsmouth to court over an unpaid tax bill amounting to £7.4m.
If Pompey file the statement, the earliest the case could return to the High Court is Friday 19 February.
Court registrar Christine Derrett said she feared the company would continue to trade and build up more debts that would not be paid.
"I am very concerned about the financial status of this company," she said. "It seems to me there's a very real risk that this company is undoubtedly trading while it is insolvent.
"I'm obviously conscious that, by making a winding-up order, it would have very severe consequences not only for the company as a business but for the supporters themselves, but that's not a consideration that I strictly take into account."
Gregory Mitchell QC, who represented HMRC, said: "It's quite clear, beyond any doubt at all, that this company is insolvent.
"They have failed to provide any evidence at all as to their solvency. There are many debts and they are unpaid."
As well as the VAT bill Portsmouth is disputing with HMRC, it also owes £4.7m in unpaid PAYE and National Insurance which were not part of the court petition on Wednesday.
Wed Feb 10, 2010 5:57 pm