A POTENTIAL buyer has shown “genuine interest” in taking control of insolvent non-league football club Southend United, a judge has been told.

HM Revenue & Customs (HMRC) issued a winding-up petition against the National League side over a £275,000 tax debt.

Judge Sebastian Prentis, who considered Southend’s plight in the latest in a series of court hearings on Monday, said he has been told there is “genuine interest” from a potential buyer.

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He said the development is “significant and encouraging”.

The judge was given details of Southend’s financial position at an Insolvency and Companies Court hearing in London on Monday.

He said it is possible that the bankruptcy petition will be dismissed.

Southend are due back in court on July 12.

Barrister Hilary Stonefrost, representing the football club, outlined the latest developments to the judge.

“There is genuine interest from a party who appears to have the funds,” said Judge Prentis.

“It is, as Ms Stonefrost said, significant and encouraging.”

He added: “There is a possibility that the petition may simply be dismissed.”

The judge said Southend are “trading insolvently” but should be allowed to raise money in the “short term” and to try to clear their debts “by way of a sale” in the “short to medium term”.

Ms Stonefrost told the judge that a sale would raise funds to clear the HMRC debt and pay other creditors.

She indicated that chairman Ron Martin aimed to raise funds to clear debts if a sale did not go through.

Ms Stonefrost said Southend, which dropped out of the English Football League at the end of the 2020/21 season, had faced a number of bankruptcy petitions in recent years and told the judge that Mr Martin’s track record in making payments was good.

Judge Prentis agreed that all previous bankruptcy petition debts had been paid.

Another judge had given Southend more time to raise money at a hearing on May 17.