Reviewed: 15th October 2015
The League Two football club Northampton Town has been issued with a winding up petition by HM Revenues & Customs (HMRC) in relation to its sizeable unpaid debts.
Despite this, David Cardoza, the club’s chairman, has maintained a positive outlook on the situation and insisted that he “fully expects the matter to be resolved by the end of next week”.
Northampton Town has been the subject of takeover talks and speculation since June, with a consortium of interested parties from India having been in negotiations to buy the club.
However, the unnamed Indian consortium withdrew from those negotiations on October 12th and made clear that they would not be taking their potential takeover any further.
“It became apparent there were a number of complications surrounding the proposed acquisition,” a statement from the consortium said.
One obvious complication for Northampton Town is that it has been given a deadline of Friday October 16th to repay a £10.25 million loan issued to it by Northampton Borough Council.
The loan was given to the club by the council on the understanding that it would be used to build a new stand at the club’s home ground of Sixfields but that work has not yet been completed.
After learning that the unnamed Indian consortium had pulled out of acquiring the football club, a council spokesperson said: “The deadline by which we have required the club to pay back the loan falls later this week and when it does, we will then consider our next steps.
“We remain open to talking to the football club and any new buyers who may come forward at this late stage.”
Club chairman Cardoza has said that he is in talks with a number of parties interested in buying Northampton Town and described negotiations to that end as being at a “well advanced” stage.
The BBC has said that it understands Northampton Town’s debts to HMRC as being worth at least £100,000.
An HMRC spokesperson said: “HMRC does not in general comment on the tax affairs of individual businesses, but our aim is to efficiently collect the debts due and to prevent things deteriorating further.
“We only initiate winding-up action where we believe this is the best way to protect both the interests of other taxpayers and creditors.”