DIRECTOR Bob Holt insists there is no cause for panic after Swindon Town was hit by a winding up petition from HM Customs and Excise.

An overdue VAT payment has triggered court action and Town have until February 2 to pay up or face the consequences.

Although the situation is potentially extremely serious, with a substantial six-figure sum being owed, Holt is confident it is a matter of "when" rather than "if" the funds are forthcoming.

A boost of around £750,000 is expected to drop into the club coffers courtesy of a combined deal between the Sir Seton Wills family and the club's property partner St Modwen in the next few days.

At the club's annual meeting on December 31 last year, the board spoke of a shortfall which would be made up early into the New Year.

Mr Holt said while the timing was unfortunate there was no need for alarm.

He said: "We know the money is coming, it is just legalities which need to be completed."

Mr Holt stressed that the winding up order was hardly a bolt from the blue which had taken the club by surprise.

He said: "This stretches back to around the time of the second Voluntary Creditors Arrangement. It is partly historic, part current. We know the excise people are now taking an increasingly tough line with football clubs."

The club has been in discussions with Customs and Excise for some time but it seems their patience has run out and a petition has now been filed with the High Court in London.

Mr Holt said: "I want to stress how confident and upbeat the board of directors are that this will be resolved.

"Once funding is in place the club will immediately settle with the Customs and Excise the overdue VAT payment and hopefully the petition will be withdrawn."

While this particular financial hurdle looks as though it will be overcome, finances remain tight.

Falling gates have made the position more difficult.

Some supporters have complained about ticket prices being too high while others are disheartened by results this year.

Attendances have dipped to an average of around 5,500, well below the targeted break-even figure of around 6,900.

Mr Holt said: "Until we have bigger gates and/or additional revenue streams from a new stadium development this club will continue to struggle each year to meet its financial obligations."

The club is scheduled to meet Swindon Council next month to discuss progress regarding a possible redevelopment of the County Ground.

We've been here before

TOWN supporters' groups have expressed concern rather than panic over the club's fresh financial problems.

Fans have become hardened to the club's cash woes over the years. The club entered administration in February 2000 and made history when they became the first club in history to repeat the process, this time in March 2002 (emerging in August 2003).

The lowest point was reached on March 5 of that year. A 2-0 defeat at Brentford looked to be the club's final match and Swindon Town were reportedly minutes away from being finished.

That was rock bottom but major benefactors injected life-saving funds and slowly the club has started to climb back from the abyss.

Swindon Town Supporters Club chairman Roger Bunce said: "Fans have had so many crisis situations that there is a danger that they almost become blase. They assume it will all be sorted. It looks like Sir Seton Wills has come to our aid yet again and for that we must be grateful. If St Modwen are putting money in as well then they have to feel there is a future for the club.

"When are we ever going to unload this historic debt though?"

Tony Norris, of the Swindon Town Supporters Trust, feels the club is a victim of a tougher line being taken by Customs and Excise.

He said: "Obviously this is a concern. Attendances have dropped and the pricing has certainly been an issue.

"However, with Customs and Excise no longer viewed as preferential creditors they don't want to see clubs going into administration they want their money.

"I have talked to various supporters' groups on this issue and there are at least half a dozen clubs in the same position."

"I have sympathy for anyone getting a tax bill as long as they eventually pay it."

Tax man takes get-tough stance

CUSTOMS and Excise says it is determined to get tough with Swindon Town over the overdue payment.

Officers say they are hoping the six-figure sum is paid back without delay and are hoping next Wednesday's deadline will see the end of the matter.

Bob Gaiger, Customs spokesman for the South West, said issuing the winding up petition was the last resort. "We try to help businesses continue," he said. "If a business is unable to make their VAT obligation we try to give them time to pay and we are very reluctant to go down the road of issuing a winding up petition.

"VAT is public money that should be paid as it allows the Government to spend money on things like public services. If the deadline is not met then we will continue with court proceedings."

Mr Gaiger said he had come across similar problems at other football clubs.

John Ritson