Northampton Borough Council has given Northampton Town three weeks to pay back £10.25 million that has been loaned to the club or face legal proceedings, the Chronicle & Echo can reveal.
Following investigations by the Chron into negotiations between the club and the borough council, the council issued a statement to confirm that the club had missed the last two repayments and that the council “does not have confidence in the club’s ability to pay these and later repayments”.
In response, chairman of the club, David Cardoza, said the club intended to meet the three-week deadline set by the borough council to repay the £10.25 million deal.
A spokesperson for the council told the Chron: “We can confirm that Northampton Borough Council has issued legal notices to Northampton Town Football Club requiring the repayment of the £10.25 million pounds that has been loaned to the club.
“The notices give the club three weeks to repay the loan in full. If the sum is not repaid, then the council will begin legal proceedings to recover the debt. The chairman has repeatedly informed us that the council will be repaid in full when the club is sold, but the sale does not seem to be proceeding at this point.
“The last two repayments have been missed and the club has not given the borough council confidence in their ability to pay these and later repayments.
“The council is also aware that there is a petition to wind up County Developments Northampton Limited, the company working on the development around the club, in the High Court.
“This step was not taken lightly but is the proper process to protect the public purse and collect the debt in these circumstances.
“We continue to support the club and remain open to discussion on ways to deal with the debt owing to the council,” the spokesperson said.
In a statement issued by the club, chairman David Cardoza said he appreciated it was alarming news for fans.
“I understand the news today is alarming for supporters but it is a deadline we intend to meet,” he said.
“Talks regarding the takeover are taking longer than anyone would have hoped but they are progressing and are close to being concluded but it is a complex, legal situation that takes time,” he said.
“That is frustrating for everyone but that is the situation. We fully intend to complete the takeover with the proposed new owners but there is significant other interest in the club should things change.
“We completely understand the urgency to bring matters to a conclusion and it is our intention to have the debt repaid.
“I would like to thank supporters for their patience, we have a big game at Sixfields on Saturday and the players and Chris Wilder need their support in what will be a tough game against the league leaders.”