A nursing home operator with debts of up to £450,000 has been handed a lifeline to settle its bill with the taxman.
Exeter-based Lifecare Solutions – which owes petitioning creditor HM Revenue and Customs (HMRC) £88,000 – was granted an extra 10 weeks to stave off the threat of liquidation.
Counsel for HMRC at the High Court claimed there had been “no contact and no payment” from the company.
But counsel for Lifecare Solutions insisted a letter had been written to the taxman and the level of debt was proving a tough obstacle for the company to overcome.
He said: “My application is for further time to pay it (the debt). These debts have proved much harder than originally thought to bring under control. I ask the court to indulge us for further time.
“This is a company which operates two nursing homes.”
On hearing the arguments Mr Registrar Nicholls ruled: “I am particularly concerned local authority funds are still outstanding.
“I have got no choice but to adjourn until April 23 marked final settlement.”
According to the company’s most recent accounts filed in March last year, it boasted net assets of £72,404 but owed creditors some £404,374, up from 342,596 in 2010.
It had not provided any contact details.