Council says individuals' 'financial affairs' will be discussed in private Cobblers loan meeting

Northampton council chiefs will likely hold an update on the Sixfields loan recovery in private because it will touch up on the "financial affairs of named individuals".

Wednesday, 18th April 2018, 5:55 pm
Updated Thursday, 19th April 2018, 8:26 am
The cabinet meeting is set to take place at the Guildhall next Wednesday.

Last week the Chron reported how the borough council had applied to hold an update on the missing £10.25 million Cobblers loan behind closed doors.

The authority handed Northampton Town the money throughout 2013 and 2014 to rebuild Sixfields Stadium and launch plans for a hotel on the site.

But the whole deal fell apart in 2015, when workers downed tools midway through the east stand renovation.

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It soon emerged the football club had not been making the repayments.

In November that year, the council wrote off the loan to the Cobblers when Kelvin Thomas took over the club and later received cabinet approval to set aside £950,000 for legal fees to chase the money.

But a report by auditors KPMG last June revealed the authority had not recouped any of the loan, despite committing a large proportion of the £950,000 to the cause.

The council's cabinet is set to discuss an agenda item entitled "recovery of Northampton Town Football Club loan" on Wednesday, April 25 in private.

But until now the authority had not revealed why - even though a number of politicians had called for the crucial summit to be held in public.

The council has now placed an explanatory note on its website.

"The special Cabinet meeting to be held on the 25th April 2018 will be held in private for the following reasons," it reads.

"The meeting will be hearing legal strategy in a live litigation case against named individuals, together with further proposed legal recovery actions against other named individuals.

"The meeting will hear from external legal advisors and will contain information about the financial affairs of named individuals.

"The council's recovery actions will also have a connection with the police investigation, which is live and ongoing."