Northampton Borough Council says it “has not been given a full and complete account” of how the £10.25 million loan to the Cobblers has been used, in a statement issued to the fans’ supporters trust.
Representatives of the Northampton Town Supporters’ Trust met with council chief executive David Kennedy and leader, Councillor Mary Markham. Northampton Town missed the deadline to pay back the £10.25 million loan to redevelop the stadium, and also missed a tax payment to the HMRC.
Following the meeting, the trust issued a series of questions and answers.
On the question of whether the borough could account for the £10 million loan, the council stated: “The council has accounted for the loans within its own accounts.
“Once passed to NTFC, the funds were partly kept by NTFC and partly passed to third parties. The largest element is a contract with First Land Limited to undertake the commissioning and implementation of stadium improvements including the new East Stand for £8.2m. It is for NTFC to account for the use of the funds loaned to it by the council.
“The council has made proper enquiries as to the use of these funds but cannot say that it has been given a full and complete account,” the statement added.
The trust asked what payments had been missed by Northampton Town.
“Payments have repeatedly been late, initially just by a few days, then by longer periods and we were warned that future payments are uncertain. The last 2 payments have been missed and total £39k. A further payment is due in the next few days,” the statement added.
With regards to new owners, the trust asked what due diligence could the council take.
“If new owners (or new majority shareholders) for NTFC are presented to us we will carry out financial and company checks related to them. The council does not have a veto on new owners/shareholders. The council is restricted in talking to those who may be interested in NTFC by its contractual relationship with these companies but is open to talks with anyone introduced to the Council by CDNL or NTFC or parties working with them,” the statement added.
A spokesman for the trust thanked the borough council, as well as fans for “their patience and understanding”.