Troubled First Division outfit Dundee will not go out of business, according to the club’s chief executive.
Dundee failed to pay players and staff their wages on Thursday and owe a £365,000 to the tax authorities.
The club are locked in talks with the taxman to avoid administration, but chief executive Harry McLean is confident the club will survive.
“Absolutely. I hope that Dundee FC is still here in another 100 years’ time,” McLean said.
McLean added that wages had not been paid on professional advice and that the club hoped to pay them next week.
Manager Gordon Chisholm informed his players of the delay but admitted he was in the dark concerning the club’s financial plight.
“The wages will be paid hopefully at the beginning of next week,” he said. “That’s what I’ve relayed to the boys.
“And as far as I’m concerned that’s as much as I can tell them because it’s as much as I know.
“I’ve been totally honest and up front with them. There’s nothing to hide. It’s not just the players, it’s everybody at the club. Hopefully, it’s just a delay and we’ll get them at the beginning of next week.”
The club have appointed insolvency practitioner Blair Nimmo to liaise with Her Majesty’s Revenue and Customs.
However, survival now seems to rest on benefactor Calum Melville agreeing to underwrite a portion of the tax demand.
Local businesses have already pledged to raise £75,000 towards the amount that is due in full to HMRC.
HMRC is seeking payment for the period between January and April 2010, when the club failed to pay their PAYE and National Insurance bill.
However, the taxman could lose out entirely with the club owing about £1.6m to directors Melville, Bob Brannan and landlord John Bennett in soft loans.
The trio could push through a creditors voluntary arrangement, which would apply to all creditors, writing off the money due and forcing the club into administration.
With HMRC no longer having preferred creditor status, it would lose out on almost all of the money due to them.
Penalties available to the Scottish Football League range from a points deduction to relegation, so the club are keen to come to a deal with the tax authorities.
A pledge made last weekend by Melville to lodge a six-figure down-payment and provide a legally-binding personal guarantee to cover the club paying the outstanding balance in instalments is the best hope of avoiding administration, if HMRC accepts that offer as opposed to its demand for immediate payment.
