Portsmouth were saved from extinction on Thursday as the beleaguered Championship club won their High Court battle with British tax authorities.
Her Majesty's Revenue and Customs wanted to block a proposed Company Voluntary Agreement (CVA) put together by Portsmouth's administrators to help the Fratton Park team out of administration.
The tax authorities claimed the CVA was "unfair and seriously flawed" as it gave preference to football creditors, including players, who were able to claim up to 100 percent of monies owed them, while other creditors including the Revenue would receive much less.
They also argued Portsmouth owed 13 million pounds more than the 24 million pounds value put on its claim by the 2010 FA Cup finalists.
With the Championship season beginning this weekend, it was feared that Portsmouth, who were docked nine points last season as they became the first Premier League club to go into administration, would be declared bankrupt if the Revenue and Customs claim was successful.
Portsmouth's administrators said the extra debts would put off potential buyers of the club, leaving them unable to come out of administration.
But the ruling went Portsmouth's way and, with the Revenue admitting they won't appeal, the threat of liquidation has been lifted.
Mr Justice Mann insisted the proposed CVA would stand and he said: "I propose to find in favour of the company administrators and dismiss the application of HMRC."
Portsmouth chief executive David Lampitt hopes the news will help his club get back on track after a miserable 12 months.
"We're delighted and relieved at the outcome announced today in the High Court," Lampitt told Portsmouth's website.
"It's obviously a massive step forward in the process towards getting this great club back on its feet.
"The result is a huge relief to the staff here whose loyalty has been unswerving and whose hard work has held the club together."
While HRMC have conceded defeat in this case, they plan to pursue actions against other teams.
"HMRC is naturally disappointed not to have won this appeal and we can confirm that we do not intend to appeal," a statement read.
"Our aim when pursuing debt of any kind is to achieve a fair outcome for the taxpayer and we will take this forward in the wider context of the football industry through separate and outstanding legal proceedings over the status of the so-called Football Creditors Rule."
Source: AFP Global Edition