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Preston plunged into financial crisis
Published : 14 May 2010 19:18:32
Preston are the latest club to be plunged into financial crisis after being hit with a winding up petition from Her Majesty's Revenue and Customs.
The Coca-Cola Championship side on Thursday borrowed £550,000 from leisure tycoon Trevor Hemmings' investment vehicle, Guild Ventures, to "meet the cost of players' wages due this month".
Yet despite the cash injection, which took Hemmings' investment in the Deepdale club to £13.82million including interest, the winding up petition was issued on Friday.
It comes following North End's "failure to pay certain liabilities", and Preston North End Plc will be suspended from trading on Alternative Investment Market (AIM) stock exchange from Monday morning, pending clarification of the company's financial position.
Preston said in a statement: "The board of Preston North End, announces that, having received a winding up petition from HM Revenue and Customs, following failure to pay certain liabilities, the Company's Ordinary Shares will be suspended from trading on AIM.
"The suspension will take effect from 7am on May 17 2010 pending clarification of the Company's financial position.
"The board are currently considering the options available and a further announcement will be made as soon as possible."