Launceston Rugby Football Club — the Cornish All Blacks — came within an ace of being wound up by Her Majesty's Revenue and Customs (HMRC) but pre-empted this by going into voluntary liquidation. Officials went to London to meet Rugby Football Union (RFU) officials on Tuesday to learn their fate but came away "reasonably optimistic."

On past record, the RFU seems likely to make a points deduction for the All Blacks in the coming season which may hamper hopes of promotion.

A new club has been formed which is seeking RFU go-ahead to take over the assets and league position of the old defunct club.

The Polson-based club's financial problems have been well documented over the past two seasons and they admit to "carrying extensive debts."

Many of those debts take the form of interest-free loans made by members but the other major creditor is HMRC.

In November, 2009, the club reached what it calls "a very generous agreement" with HMRC to spread re-payment over several years.

But then, a subsequent inspection revealed "discrepancies in dealing with expenses" which meant a further undisclosed sum was due to HMRC.

The club has told sponsors in the town:?"In July, 2010 we received a letter informing us that they were cancelling the arrangement and that, if full payment was not made within seven days they 'will wind up the company for this debt.'

"The club, through the executive committee, continued the dialogue with HMRC seeking an agreement to clear the outstanding debt in full over a period of time although HMRC declined the offer and maintained their position of winding up the company...

"Rather than wait for HMRC to take hostile action and appoint a receiver it is with regret that we have to inform you that the executive committee were left with no choice but to appoint an insolvency practitioner to Launceston Rugby Football Club Ltd on Friday, 13th August 2010."

The RFU, which administers the game, was informed of the decision on Monday, August 16.

A new company called 'Launceston Rugby Club Ltd' has been informed which aims to take over the assets and league position of the old club with RFU blessing. The new company has been registered with Companies House.

The club says it has the backing of the RFU in this move and had prepared a full business plan for the next three years, which includes "a comprehensive profit and loss and cashflow forecast, which indicates that Launceston Rugby Club has a long term sustainable future."

In a statement, the club says all creditors of the former Launceston Rugby Football Club Ltd will be contacted by the insolvency practitioner.

The club's financial plight overshadowed Saturday's friendly fixture against Newport, which the All Blacks lost 22-15.

Club president Jim O'Hara and Tim Fox, the chairman, travelled to London to meet RFU officials on Tuesday.

Mr O'Hara told the 'Post' on Tuesday afternoon: "It was a very good and constructive meeting. The RFU has a protocol they had all the information from us and will now review it and take it from there. It is a simple as that."

He said they expected a decision within seven days and were "reasonably optimistic but we don't want to pre-empt anything."

Officials and the the new joint coaches, Tony Roques and Mal Roberts will be hoping it does not prove a distraction for the first National League One game of the season against Rosslyn Park, on September 4.

Roques is taking a positive line but admits: "It's difficult for the lads, a lot of them have been here for quite a few seasons now and they've seen two pay cuts and now the liquidation.

"As much as you try and put it to the back of your head, it's still going to play on the boys' minds.

"We've got to put that behind us and do a job, and, while Launceston Rugby Club is still functioning, we're going to do that job.

"We've just got to move forward as a club and hope the RFU allow us to do that."