A winding-up order placed against crisis club Gateshead has been dismissed.
The name of the National League club was on a list of a number of companies that are scheduled to attend hearings at a court in London on Wednesday.
READ MORE: Joseph Cala on his role at Gateshead and club's finances
The winding-up order was imposed due to outstanding payments owed to a number of parties including Her Majesty’s Revenue and Customs.
A club statement said: “The club have known about the winding up order and have been speaking regularly with HMRC in order to settle the debts.
“This equates to £20,223.61.
“We are also speaking to the National League today in order to release funds from our £200,000 bond in order to settle these debts and ensure the order goes no further, this was discussed at last Friday's meeting.”
The Echo has approached the National League but have told us that they were unable to comment.
However, Gateshead released a further statement on Wednesday afternoon confirming that the order had been dismissed.
It read “Update from HMRC: The court case regarding Gateshead FC’s winding up order has been dismissed, however the club still need to make payment in full as soon as possible to prevent further action from being taken.”
Chief financial advisor at the club, Joseph Cala, revealed in an interview with BBC Newcastle yesterday that the club need the bond back to pay off HMRC.
He said: "We had a strategy to ask for bond back, we said to league to release most of the funds, at least half, because we have bills to pay, mainly HMRC.
"We need the money to pay our bills. It is the club's money and that's why we asked when they were her on Friday. We need that money to pay off the most important bills."
Gateshead are riding high in the National League this season despite having only 14 outfield players. They are chasing a play-off position under the management of Ben Clark, but have had to deal with a number of off-field distractions in recent weeks.
Star defender Fraser Kerr was sold to rivals Hartlepool United without Clark's knowledge, believed to be for a paltry £4,000, while captain Scott Barrow claimed Cala was touting him around clubs.
The Heed also failed to have a transfer embargo lifted by the National Leaguein their crunch meeting on Friday, in which they asked for funds from their bond to be released.
Cala, who is advisor to Hong Kong-based owner Dr Ranjan Varghese, told the Echo earlier this week that he was trying to make the club self-sustainable and had reduced costs, and promised that Gateshead wouldn't resign from the National League.