Northampton Town insolvency hearing adjourned
Insolvency proceedings brought against Northampton Town Football Club over an unpaid £10m loan have been adjourned for a deal to be thrashed out.
Northampton Borough Council lodged proceedings after former club chairman David Cardoza failed to repay the money it loaned to the club for improvements to the Sixfields stadium.
It hopes to make a deal with new owner Kelvin Thomas to recoup the debt.
The High Court agreed to adjourn the petition until 11 December.
Lawyers for the League Two club and Northampton Borough Council told Mr Justice Nugee it was agreed the administration petition should come back on that date if negotiations did not succeed.
Counsel for the local authority, James Morgan, said HM Revenue & Customs had confirmed its own petition over an unpaid £160,000 would be dismissed as payment was made in full on Thursday.
He added that agreement with the council, which was the only remaining substantial creditor, would be the next stage in an ongoing process to save the club.
Thomas Talbot-Ponsonby, for Northampton Town, said it fully supported the adjournment in the hope that the rescue package would go ahead.
The judge approved the adjournment as "very sensible".
A memorandum of understanding has been agreed between the council and Kelvin Thomas that would see the club's debt wiped out, with the council acquiring land near Sixfields for development in return.