Her Majesty's Revenue and Customs had issued a winding up petition against parent company Llanelli RFC Ltd, but today their lawyers asked top insolvency judge, Registrar Stephen Baister, to formally dismiss the petition.
Llanelli Scarlets ward off winding up petition at London's High Court over unpaid tax bill they claim never existed
Her Majesty's Revenue and Customs had issued a winding up petition against parent company Llanelli RFC Ltd, but today their lawyers asked top insolvency judge, Registrar Stephen Baister, to formally dismiss the petition.
Though no details were given in court, the move likely means that the undisclosed tax debt has been paid in full.
Had the company been compulsorily wound up, this would have effectively handed over the club's affairs to an Official Receiver.
His job would then have been to do his best to ensure debts were paid off by selling any assets available and then bringing business to a close.
A spokesman for the Scarlets said: "It appears that in error, and unknown to the Scarlets, HMRC started a process of presenting a winding up petition against the Scarlets.
"It was subsequently identified by HMRC that there was no outstanding debt due from the Scarlets and so it discontinued the process.
"As such, no notice of the petition was served on the Scarlets and the Scarlets were unaware of, and did not attend, today’s insolvency proceedings.
"On further investigation, it is clear that HMRC has today simply attended court to formally request the dismissal of the process they initiated in error.
"The Scarlets would like to re-assure all our loyal customers and suppliers that this is an unfortunate mistake which has now been rectified by HMRC via the correct channels."
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