A ROW between Swindon Town and a developer over an alleged £2.5m debt has spilled out into public.

The long-running dispute between Town and property development firm St Modwen has led to accusations in a national newspaper yesterday that the club could go out of business.

Town’s chairman, Andrew Fitton, said a “messy situation” over a loan dating back to 2003 had been made worse by the Guardian report.

The paper reported that St Modwen are seeking a winding-up order which, if successful, would see the consortium behind the club cease to exist and its assets sold for the benefit of its creditors.

The property company declined to comment on the report and the Royal Court of Justice had no evidence of such an order.

According to a club statement the dispute dates back to 2003 when the club's former holding company established a joint venture company, Shaw Park Developments Ltd, with St Modwen.

The statement read: “Swindon Town Football Company Limited's financial statements for the period to May 31 2009 clearly show this matter as subject to a dispute between the parties.

“Discussions between the parties have been ongoing for some time now and though no resolution has been reached the Club will continue to use all endeavours to bring the matter to satisfactory conclusion.”

The Guardian reported that a two-year grace period on the £2.45m loan expired in August and having heard nothing the company now feels it has no choice but take the matter to court.

Mr Fitton said there were inaccuracies in the Guardian’s article – including the figures being quoted.

He said : “It is not helpful for someone to try and negotiate through the press.

“This story, which is not completely accurate, is a way for the other side to pressure us through the press, and we will not go through this game.

“We have found it very difficult to negotiate this situation, and have also found it very difficult to fight our way through a messy situation.”

He also refused to be drawn on a timescale for the argument to be settled.

He said: “I really don’t know. We have been talking for several months now, but seem not to be able to find a satisfactory resolution for each party."

“As a tactic it wasn’t a surprise, but putting it out in the press is not really the best way to reach a conclusion as it makes us even more wary of things.”