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Council aids Wrexham with loan
England - 23 June, 2006
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The local council will help Welsh-based club Wrexham secure its financial future.
The council's executive board agreed a short-term loan, believed to be about GBP 400,000, to support a takeover bid to take the club out of administration. Administrators hope the GBP 3.3 million deal will be finalised next week.
The council said it would work closely at helping secure the long-term viability of Wrexham's Racecourse stadium. The consortium is led by Wrexham car dealer Neville Dickens and Chester travel agent Geoff Moss.
"The council will now work closely with the prospective purchasers and will be working with partner organisations to secure long term viability for the Racecourse ground as a regional stadium," said Council leader Aled Roberts.
The council said the terms of the loan must remain confidential but it had "taken a strictly commercial view in coming to this decision."
Councillors have already granted outline planning permission for the consortium to go ahead with redevelopment around the stadium.
The scheme includes an eight storey block of flats for 300 students at the nearby North East Wales Institute, together with private apartments, a retail area and a new stand.
Consortium members met Football League officials in Preston Wednesday to explain their plans.
Administrator Dave Ackland, who was also at the meeting, said the plans had been well received and was hoping that the deal would be completed by the end of next week.
This would involve the deeds of the Racecourse being handed over in return for the GBP 3.3 million cheque.
Earlier this month the league voted to accept the consortium's rescue plan and allow more time for the deal to be completed so that the Dragons can continue to play in League Two next season.
The league's original deadline for Wrexham to be taken out of administration or face expulsion expired on 3 June.
Last month, creditors of the club, which went into administration in December 2004 with debts of GBP 4.7 million, voted to accept a dividend of at least 27.7p in the pound.
The council's executive board agreed a short-term loan, believed to be about GBP 400,000, to support a takeover bid to take the club out of administration. Administrators hope the GBP 3.3 million deal will be finalised next week.
The council said it would work closely at helping secure the long-term viability of Wrexham's Racecourse stadium. The consortium is led by Wrexham car dealer Neville Dickens and Chester travel agent Geoff Moss.
"The council will now work closely with the prospective purchasers and will be working with partner organisations to secure long term viability for the Racecourse ground as a regional stadium," said Council leader Aled Roberts.
The council said the terms of the loan must remain confidential but it had "taken a strictly commercial view in coming to this decision."
Councillors have already granted outline planning permission for the consortium to go ahead with redevelopment around the stadium.
The scheme includes an eight storey block of flats for 300 students at the nearby North East Wales Institute, together with private apartments, a retail area and a new stand.
Consortium members met Football League officials in Preston Wednesday to explain their plans.
Administrator Dave Ackland, who was also at the meeting, said the plans had been well received and was hoping that the deal would be completed by the end of next week.
This would involve the deeds of the Racecourse being handed over in return for the GBP 3.3 million cheque.
Earlier this month the league voted to accept the consortium's rescue plan and allow more time for the deal to be completed so that the Dragons can continue to play in League Two next season.
The league's original deadline for Wrexham to be taken out of administration or face expulsion expired on 3 June.
Last month, creditors of the club, which went into administration in December 2004 with debts of GBP 4.7 million, voted to accept a dividend of at least 27.7p in the pound.
Source: euFootball.BIZ © Copyright 2006 -
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