The owner of Norton Motorbikes said he was working with HMRC to avoid a winding up petition over hundreds of thousands of pounds of unpaid taxes.
Stuart Garner rescued the historic bike brand back in 2008, bringing its factory to Castle Donington on the Leicestershire/Derbyshire border.
Today it employs around 100 people making bikes such as the Commando 961 Cafe Racer, Dominator and V4RR, which are now sold around the world.
He said his company owed HMRC £300,000 – mainly covered, he said, by outstanding research and development tax relief which was owed to the business.
Representatives of Norton Motorcycles (UK) Ltd were at the High Court’s Insolvency and Companies Court in London yesterday facing the winding up order over the outstanding debts.
The court heard how HM Revenue & Customs was originally owed around £600,000, half of which had been paid.
HMRC’s barrister told top insolvency judge Judge Sebastian Prentis that because the debt had been reduced and the company was making payments, they were seeking an adjournment.
He asked for 63 days for the outstanding amount to be settled.
Norton’s financial director told the judge the company had £135,000 in research and development tax credits due, which were with HMRC for approval.
Judge Prentis adjourned the hearing until February 12.
Speaking after the hearing, Mr Garner told Business-Live: “They have extended the time we have to pay and agreed the payment we have put to them.
“This was the formality of what we have agreed over the past few months and wraps around research and development tax credits which have been delayed.
“We have paid an element of the cash and the figure left is, in essence, the R&D balance.
“It has been frustrating that the tax credits have taken so long to come through. We have spent about £13 million in R&D in the last three-four years so it is frustrating that this has taken so long.
“There have been five new models in the past year as a result of our R&D spend.”
Had the company been wound up its affairs would effectively have been handed over to an Official Receiver.
Their job would then to ensure the debts were paid off by selling any assets available and then bringing business to a close.
Last year, Mr Garner launched a £1 million crowd-fund campaign to finance a £30 million order book and spend on further R&D.
He later pulled the appeal, saying a big investor had come forward.
The company was founded in Birmingham in 1898 by James Lansdowne Norton, starting out as a manufacturer of “fittings and parts for the two-wheel trade”.
By 1902 Norton had started manufacturing motorcycles.
