Northampton Town loan: Money paid to creditors

The project to rebuild one of Sixfields' stands remains unfinished, while neighbouring land remains undeveloped

A small amount of the missing £10.25m loan made by Northampton Borough Council to the town's football club has been repaid, following a court hearing.

The loan was for the redevelopment of Northampton Town's ground. A police inquiry into where it went continues.

The council was seeking £900,000 from County Developments Northampton Ltd (CDNL), which was set up to manage the development but ceased trading.

The court said the council should get £29,584 from CDNL's liquidators.

The East Stand at Sixfields was meant to be transformed

CDNL was also supposed to be redeveloping land alongside the Sixfields Stadium.

Civil court agreement

In a Company Voluntary Agreement made at Birmingham County Court in October, the liquidators agreed to a deal which would see creditors receive about 3% of what they were owed.

The agreement has been published on Companies House records.

Along with the council's share, £11,290 goes to the government in taxes and 1st Land Ltd gets £12,975.

1st Land Ltd is the company run by Howard Grossman which received the bulk of the £10.25m loan for the redevelopment, and it is also in liquidation.

The major creditor, the stadium builder Buckingham, agreed not to make a claim on this company, and it is still millions out of pocket.

The deal is possible because Northampton Town's new owners Kelvin Thomas and David Bower paid in £170,000 so that the leasehold of the land was not realised by the liquidators.

The club wants to negotiate a new deal with the council to develop the land.

Northampton Borough Council confirmed it had received the £29,584.36 and it was still pursuing other claims.

Ten people have been interviewed under caution and seven have been arrested as part of the Northamptonshire Police investigation.