Leyton Orient winding-up order pushed back until June

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Struggling League Two football club Leyton Orient has been granted a stay of execution to pay off its debt or sell by 12 June or be wound up

The petition was issued to the club on 2 February by HMRC, but at a winding-up hearing held at the High Court club owner Francesco Becchetti was given the extended deadline to meet the club’s obligations.

HMRC issued the winding up order as the principal creditor, and while the outstanding taxes have now been paid, there are four other creditors awaiting payment.

Chief executive Alessandro Angelieri gave the court a statement saying Becchetti would invest £1m to pay off remaining debts in eight to 10 weeks.

Becchetti said in January he would consider selling his 40% stake in the club, which he acquired in 2014.

In its most recent financial results, for the year to 30 June 2015, Orient puts its book value, the net value of the company running the football club, at -£5,512,449, meaning the club had debts exceeding its assets of more than £5.5m.

The club is enduring a difficult season, mired as it is in the League Two relegation zone, bottom of the league and in danger of dropping out of the Football League altogether. A 3-0 defeat to Crawley Town on Saturday 25 March left Orient seven points adrift of safety.

Leyton Orient Football Club has been contacted for comment.

Calum Fuller | Assistant editor, Accountancy magazine (up to 2018)

Calum Fuller is former assistant editor of Accountancy magazine and Accountancy Daily, published by ...

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