BURY FC won breathing space today after surviving a winding-up petition at London’s High Court.

One of the country’s top insolvency judges adjourned the winding-up petition against the club until 15 May after being told that terms have been agreed to pay an undisclosed “historic debt” owed to former assistant manager Chris Brass.

The judge was told this morning by Mr Brass’s barrister that proposals had been made and accepted.

That was confirmed by the League Two club’s barrister Nathan Webb, who told Judge Sally Barber at the Insolvency`and Companies Court that those proposal terms had been agreed and asked for five weeks for full payment to be made.

Mr Webb explained where the money was coming from to pay Mr Brass’s outstanding debt.

He said: “The source of the payment is payment from the English Football League and from season ticket sales.

He continued: “My instructions are that the petitioning creditor will be paid in five weeks but if the company continues to trade it will generate revenue which can pay other creditors.”

Five other supporting creditors, plus HM Revenue and Customs which is owed £277,640.77 in unpaid tax – the largest debt – were all represented at today’s hearing.

Who and which companies they were was not revealed. But, after a question from the judge, it appeared that no one was owed more than the sum outstanding to the tax authority.

At a previous court hearing two supporting creditors were identified as SM Impact Ltd and Stellar Football Ltd. Between them they were owed over £27,000.

In light of the payment agreement with Brass and in anticipation of his winding up petition being dismissed, HMRC applied to be substituted as petitioner, in effect, taking over the winding up proceedings from Mr Brass.

The case will come back before the court on 15 May once the legal paperwork has taken place.

The supporting creditors will have to choose whether they now line up behind HMRC’s application.

Mr Webb, for Bury FC Co Ltd, had asked the judge to put off HMRC’s substitution until after Mr Brass, of Barrowford, Nelson, had received payment and his petition was dismissed, in five weeks’ time.

But Judge Barber disagreed, saying, there was no point in delaying making the substitution order.