The 29-year-old was cleared of one count of rape and one count of attempted rape in July following a retrial. He then signed for Ligue 1 side Lorient ahead of the 2023-24 season.
According to The Mirror, HM Revenue and Customs (HMRC) have filed a case against the France international for bankruptcy, following reports of an unpaid £800,000 ($1m) tax bill. Mendy was suspended by Man City in September 2021 following his arrest and his pay was withheld from that point onwards.
Jacquille Jarrett, representing HMRC, told a High Court hearing that proceedings over the debt had previously been postponed pending the outcome of the criminal trial, while a settlement payment using funds from the sale of his house or back pay from his former employer had been anticipated, but was yet to arrive.
“There has been no contact from the debtor,” Ms Jarrett said, adding: “The agreement advises that an update would be given to HMRC but no contact was made. We look to secure a bankruptcy order today.”
Mendy's accountants provided details of his hopes to recuperate funds lost due to the charges brought against him. He is said to be in negotiations with former club City over £9m-£10m in back pay following the not-guilty verdict, and he has put his £5m ($6.4m) house near Macclesfield on the market.
Mendy left the current Premier League champions upon the expiry of his contract back in June and was later cleared of the sexual offence charges following a retrial. In his first trial, lasting six months and ending in January 2023, he was cleared of six counts of rape and one count of sexual assault.
“He himself has moved back to France where he comes from,” the accountant said. “I would like to ask for a short extension because I am told very firmly by his agent that the pay issue will be resolved from Manchester City. He was very short of money indeed, the cost of the legal case were over £1m.”
The hearing was adjourned until October 4 to give Mendy time to sell the property in Cheshire.