SWINDON TOWN: Property loan is settled (From Swindon Advertiser)

SWINDON TOWN: Property loan is settled

6:50am Friday 27th November 2009

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TOWN have wiped out the threat of a winding-up order after settling their £2.45million loan with property company St Modwen.

National newspaper reports earlier this month claimed the League One side were on the brink of being wound up following the non-repayment of the loan dating back to 2005.

The article, in the Guardian, stated that Swindon were lent £1.45m from St Modwen in 2005 to pay a VAT bill, and that a grace period agreed with chairman Andrew Fitton's consortium when they took over the club in January 2008, ran out in the summer.

The report further claimed that St Modwen issued a statutory demand for repayment in October, but received no reply, and is claiming the original loan of £1.45m plus £1m in interest.

At the time, the club admitted they would “continue to use all endeavours to bring the matter to a satisfactory conclusion,” and that was resolved between both sides yesterday.

Details of the exact repayment have not been disclosed, but a statement from Town read: “The board of Swindon Town is pleased to confirm that the issue relating to the loan between St Modwen Properties plc and Swindon Town Football Company Limited has today been resolved to the full satisfaction of both parties.”

Despite the Advertiser’s requests, no-one at Swindon was available for further comment.