Northampton Town court hearing 'to be withdrawn'

The council is to reclaim the £10.25m it loaned to the Cobblers by developing land it owns around Sixfields Stadium.

The future of Northampton Town has been secured after an agreement was signed to stop a hearing that could have seen the club go into administration.

The hearing was lodged by Northampton Borough Council in November and was listed to be heard in the High Court.

But the council said it will be withdrawn now an agreement has been reached with new owner Kelvin Thomas.

The council is to reclaim the £10.25m it loaned to the Cobblers by developing land it owns around Sixfields Stadium.

A Northampton Borough Council spokeswoman has confirmed Mr Thomas's statement this afternoon.

The insolvency proceedings had been brought against the club over an unpaid £10m loan.

The council had lodged proceedings after former club chairman David Cardoza failed to repay the money that had been loaned for improvements to the Sixfields Stadium.

A memorandum of understanding has been signed between the council and Mr Thomas that will see the club's debt wiped out, with the council acquiring land near Sixfields for development in return.