Southend have avoided going into administration after settling their tax debts with the Inland Revenue.
The npower League Two club were given an additional two weeks by HMRC last month to pay off their outstanding debts. Had an agreement not been reached on Monday then Southend could have been placed into administration, meaning they would begin the new season with a points deduction.
Shrimpers chairman Ron Martin has confirmed that everything has been settled with the tax office and that the club's debts are now up to date.
Southend have agreed a partnership with Sainsburys that will see work begin on a new ground and a flagship supermarket in the town.
The club have been busy signing new players on pre-contract agreements and Martin now expects those deals to go through after settling their debts.
"We've paid off the entire debt," he told Sky Sports News. "It's a relief all around.
"It was more than a quarter of a million pounds, it was £340,000, so that's now discharged. All the club's debts are now up to date.
"I know the fans have been very concerned and it's probably difficult for them to understand the complexity of the transaction. We've now moved on with Sainsbury, who are partnering us with this arrangement. The fans can relax and we can now move on positively.
"I can confirm that the club's finances have now been underwritten by this partnership for the forthcoming 12 months.
"The embargo should be immediately lifted. We'll then move the pre-contract players to Southend players. They'll all be registered."
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