Ospreys agree to pay tax

Welsh glamour outfit Ospreys have decided to pay their bills, so they can continue to play rugby.

The Ospreys avoided a potential financial crisis after reaching an agreement with the United Kingdom tax department over an outstanding bill.

The defending Pro12 champions were threatened with a winding up order from Her Majesty's Revenue and Customs department a day after winning the 2011-12 title.

However, a settlement has since been reached by both parties.

"We can confirm that on the request of HMRC, the petition against Ospreys Rugby Limited has been dismissed at the High Court of London," an Ospreys spokesperson said.

"As previously noted, both parties have been engaged in positive, on-going discussions and we are delighted to have been able to resolve this situation."

The Ospreys made a loss of £1.46 million for the financial year ending May 31, 2011, but the club hopes to be back in the black next season after cutting significantly its spending.