Southend have been given 14 days to provide evidence against a HMRC application to appoint Administrators to the club.
The court failed to receive any response from the club from the June 28th filing of the application by HMRC in which they called the club "demonstrably insolvent". They owe the taxman £238,000 and face another court hearing next week over a £140,000 loan.
They will face the taxman again on August 2nd, despite chairman Ron Martin assuring fans that the money would be paid before today's hearing. Quite where that leaves manager Paul Sturrock is anyone's guess.
He was due to sign his three year deal after today's court date, but the 14 day extension would mean it likely that it will be the week before the season starts before the transfer embargo is lifted.
UPDATE: The Guardian reports that Sainsburys, who are partnering the club in building their new stadium, had paid the tax demand, but the taxman demanded the club be placed in Administration as it had missed payments due in the ten days since the winding up petition was issued.