Leyton Orient has been handed a stay of execution after a court gave owners ten weeks to pay off debts or sell the club.
A hearing at the Royal Courts of Justice was called this morning (Monday, March 20) over an unpaid tax bill believed to be in the region of £125,000 to £250,000.
The court heard owner Francesco Becchetti had settled the debt with HMRC, but the club had several other creditors.
A letter from the club's chief executive, Alessandro Angelieri, read at the hearing stated Mr Becchetti intends to inject £1 million into the club in order to pay off its debts.
The club owes around £35,000 to Waltham Forest council, £18,000 to Central Circle Events Management Ltd, which provides matchday stewards, and £6,000 to its official photographer.
Orient were granted a reprieve until June 12, by which time the court expects Mr Becchetti to have either paid off the debts or sold the club.
Crucially, this means Orient will not enter administration before the end of the current season, avoiding a 12-point penalty from the Football League.
However, if the situation has not been resolved by the next hearing, the club risks liquidation.
The O’s currently sit bottom of League Two, seven points adrift of safety, and look set to drop out of the Football League for the first time in more than a century.
Speaking after the hearing, Leyton Orient Fans Trust (LOFT) member and legal advisor, Adam Michaelson, said the club remained in “mortal danger” despite today's decision.
Mr Michaelson added: “There are a number of creditors that have been paid this morning, but there are a number of outstanding creditors and a number more that were not represented today.
“It leaves the club in a state of significant uncertainty and frankly, mortal danger.
“The promise that [Mr Becchetti] has made to court of putting £1 million into the club within eight to 10 weeks, is something we are going to have to wait and see the outcome of.
“We would call on Mr Becchetti now to look to sell the club at the earliest possible opportunity in order that it can be passed into the hands of people who know more about running this kind of organisation than he does.”