Written by: Keith Tully
Published: 27th November 2015
Northampton Town Football Club, which has been beset by a series of financial crises in recent months, has avoided administration and found itself a group of new owners.
A new company called Northampton Town Ventures Limited announced the completion of its takeover of the club late on Wednesday November 25th, with an administration hearing having been scheduled for Friday November 27th.
That court hearing is now set to be adjourned with the consent of Northampton Borough Council, a major creditor to the club which was behind the administration petition.
Earlier this week, the council agreed to amend the terms of repayment in relation to a £10.25 million loan it gave to the football club, a decision which apparently opened the door for a takeover deal to be agreed.
Northampton Town’s new executive chairman Kelvin Thomas said: “This [takeover] has been a very complicated and challenging transaction, however we are very excited about being in a position now to look forward rather than back.
“After receiving the news that Northampton Borough Council made the strong decision on Tuesday to amend the repayment terms of the debt, which we are very thankful for, it has been full speed ahead to get the paperwork completed.”
After the takeover, the football club’s new owners were able to pay off HMRC and clear in full the tax-related debts which had become a very significant financial burden for the distressed club.
HMRC recently issued a liquidation petition against Northampton Town FC, with expectations now that that petition will be withdrawn in the coming days.
“We have the funds in place to take care of the short and long term needs of the club which has been shown to both the Council and the Football League, and we will be working hard over the next few months to understand the areas of investment required and then implement plans accordingly,” Thomas said in a statement.
Remarkably, despite being faced with administration and potential liquidation, Northampton Town’s football team has performed well in recent weeks, with the club currently placed third in the League Two table, which is the third tier of English football.