Owls avoid immediate administration threat

08 September 2010 09:54
Sheffield Wednesday have avoided the immediate threat of administration after reaching agreement with bankers over unpaid taxes. The Owls were at the High Court in London on Tuesday over an unpaid tax bill to HM Revenue & Customs estimated to be in the region of £1.1million. However, following lengthy negotiations, the League One club reached what has been described as a 'short-term agreement' with the Co-operative Bank to secure their immediate future. They will now avoid the 10-point Football League penalty for entering administration. Speaking before the agreement, the Co-op Bank's head of corporate relations, Russell Brady, spelled out the threat facing a club which was relegated from the Championship last season. "We are obviously continuing to talk to the club," he said. "We are doing everything we can to try to get to a position where the club is on a sound footing. "Discussions are ongoing involving our directors and Sheffield Wednesday's directors."

Source: ESA