12 Aug 2010Sheffield Wednesday 'to receive emergency loan'

Football Clubs News | Football Finance News

League One football club Sheffield Wednesday are reportedly on the verge of being granted emergency credit after being threatened with a winding-up order by HM Revenue and Customs (HMRC) earlier this week.

According to the Guardian, the Yorkshire side are currently in debt to the Co-operative Bank by £22 million - without taking into account last season's relegation from the Championship - and have requested more credit for the coming season.

HMRC gave the club 28 days to settle their outstanding tax bill this week as part of the tax office's ongoing campaign against the controversial football creditors' rule, which it believes unfairly deprives investors of what they are owed.

"Any business that regards paying tax as an optional extra after other expenses are met or that uses tax collected from employees or customers as working capital is potentially heading for trouble," a spokesman for the body said.

Portsmouth earned a vital victory in the High Court last week, after HMRC took action over a proposed company voluntary agreement.

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Written by Terry Mitchell

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