Morecambe FC said arrangements have been made to settle an outstanding debt in full after a company filed a winding-up petition against the football club.
The winding up petition was filed with the High Court against parent company Morecambe Football Club.Limited by KPM Groundworks Limited on March 16.
A winding-up petition is a serious legal action which can be taken by creditors against a company.
An application can be made to the court to close or ‘wind up’ a company if the complainant is owed £750 or more.
A statement from the club on Friday said: "Morecambe Football Club can provide a further update following its previous communication regarding the winding-up petition issued by KPM Groundworks Limited.
"The club can confirm that it has now reached an agreement with KPM Groundworks Limited in relation to the matter, including arrangements to settle the outstanding debt in full.
"As a result of this agreement, the club has provided the relevant evidence to the National League, which has confirmed that the embargo placed on Morecambe Football Club has been lifted with immediate effect.
"This outcome represents a positive step forward as the club continues to address historical matters and move towards greater stability both on and off the pitch.
"Morecambe Football Club would like to thank its supporters for their continued patience and backing during this period and will provide further updates as appropriate."
An initial club statement on Wednesday said: "Morecambe Football Club can confirm that it became aware yesterday afternoon of a winding up petition that had been filed against the club seven days earlier by one of its suppliers, KPM Groundworks Limited, in relation to a legacy debt incurred prior to the takeover by (club owners) Panjab Warriors in August.
"This was the first notification the club had received regarding this action.
"Since becoming aware of the petition, the club has been in immediate dialogue with both the supplier and its legal representatives, with the aim of reaching an agreement to have the petition withdrawn at the earliest possible opportunity.
"The club will continue to keep supporters informed and will provide a further update as soon as it is in a position to do so."
A winding up petition was previously filed against Morecambe Football Club.Limited in August 2025 by the UK's tax authority HMRC (His Majesty's Revenue and Customs) prior to the takeover by Panjab Warriors that month. This was later withdrawn.
Other winding up petitions filed in 2016, 2017, 2018 and 2019 against the club by HMRC were either withdrawn, concluded or dismissed.
Ben Cassar, vice chair of the Shrimps Trust supporters group said: "The trust is aware of the recent winding up petition lodged against the club by KPM Groundworks Ltd.
"We also acknowledge the club’s recent statement on the matter, and can confirm we have spoken with figures at the club.
"We are currently doing what we can to gather more information, and are due to speak with the club further in a pre-arranged meeting on Monday March 30.
"We are also in communication with other key contacts, including the Independent Football Regulator and local MP. We will update fans and members as we learn more, including after our upcoming meeting with the club."
The National League confirmed on Friday that an embargo against the club for non-compliance with financial regulations, imposed on March 25, was lifted on March 27.
A previous National League embargo imposed against the club on February 27, also for non-compliance with financial regulations, was lifted on March 18.
An embargo prevents a club from signing a new player or changing the terms of an existing loan, except where the terms of the embargo allow.
Morecambe FC are second from bottom of the National League with five games to play, eight points from safety, and in danger of their third relegation in four seasons from their highest ever position of League One.
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