Northampton Town loan: Money paid to creditors

By Julian Sturdy
BBC Look East

Image caption,
The project to rebuild one of Sixfields' stands remains unfinished, while neighbouring land remains undeveloped

A small amount of the missing £10.25m loan made by Northampton Borough Council to the town's football club has been repaid, following a court hearing.

The loan was for the redevelopment of Northampton Town's ground. A police inquiry into where it went continues.

The council was seeking £900,000 from County Developments Northampton Ltd (CDNL), which was set up to manage the development but ceased trading.

The court said the council should get £29,584 from CDNL's liquidators.

Image source, Getty Images
Image caption,
The East Stand at Sixfields was meant to be transformed

CDNL was also supposed to be redeveloping land alongside the Sixfields Stadium.

Civil court agreement

In a Company Voluntary Agreement made at Birmingham County Court in October, the liquidators agreed to a deal which would see creditors receive about 3% of what they were owed.

The agreement has been published on Companies House records.

Along with the council's share, £11,290 goes to the government in taxes and 1st Land Ltd gets £12,975.

1st Land Ltd is the company run by Howard Grossman which received the bulk of the £10.25m loan for the redevelopment, and it is also in liquidation.

The major creditor, the stadium builder Buckingham, agreed not to make a claim on this company, and it is still millions out of pocket.

The deal is possible because Northampton Town's new owners Kelvin Thomas and David Bower paid in £170,000 so that the leasehold of the land was not realised by the liquidators.

The club wants to negotiate a new deal with the council to develop the land.

Northampton Borough Council confirmed it had received the £29,584.36 and it was still pursuing other claims.

Ten people have been interviewed under caution and seven have been arrested as part of the Northamptonshire Police investigation.

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