Northampton Town takeover moves closer
Tuesday 24 November 2015 19:58, UK
Kelvin Thomas' proposed takeover of Northampton Town has taken a step closer after the local council agreed to restructure a £10.25m loan.
Members of Northampton Borough Council have agreed to free the club of the outstanding repayments of the loan, which had been issued to the Cobblers to pay for the redevelopment of the east stand at Sixfields Stadium.
The deal was agreed during private discussions at a council meeting on Tuesday night and should now pave the way for Thomas' consortium to take control of the club from owner David Cardoza.
The council will sell land around the stadium to recoup the £10.25m, and a criminal investigation into "alleged financial mismanagement" will be implemented.
"A memorandum of understanding has been agreed tonight," a council statement said.
"Cabinet has agreed to move forward with a deal that would see the debt owed by the club transferred across to the development land.
"The club would then be free, subject to meeting conditions, of debt to the borough council, putting the club on a stable footing for the future.
"Control of the land development and pursuit of the debt would come back to the borough council.
"To repay the debt, the borough council will move forward alone with the development of the land around Sixfields. The club will also relinquish to the council the right to recover outstanding money from First Land and County Developments Ltd.
"The agreement would also see the consortium led by Kelvin Thomas pay off the club's debt to HMRC and plan to finish the East Stand and develop conference facilities at the ground."
