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Owls announce bank deal
WEDNESDAY this afternoon annouced a major new step in their bid to bring investment into Hillsborough.
A deal has been agreed with the Co-op bank over money they are owed, and talks with other major creditors and certain key shareholders are at an advanced stage.
A club statement says that outline agreement has been reached with the bank "concerning overall indebtedness of the business."
This is understood to mean that the bank are prepared to write off some of the 21m owed to them (out of a total club debt of around 25m) - which would allow the maximum possible proportion of new investors' money to go directly into the club.
The statement adds: "This agreement is subject to contract and formal sign-off by all parties and to new investment, Delivering the agreement will result in the club being in a sound financial position.
"Throughout this process, the bank has been very supportive of the club and its management and has been keen to ensure that any investment funds raised on behalf of the club are indeed invested in the club and its future.
"In addition, positive discussions with the other major creditors and key certain shareholders are at an advanced stage and progressing well.
It is believed that a satisfactory outcome will be achieved, thus allowing a definitive agreement to be put before potential investors.
"Following a period of legal financial and commercial due diligence, which has already commenced, it is anticipated thatr full proposals, all of which would be inter-conditional, will be announced in line with the target deadline of March 31."
Chief executive Nick Parker said: "Long-term financial stability is obviously a pre-requisite before any professional investor will put money into a business and these positive discussions pave the way forward for the club.
"We thank all the major creditors and partires involved for their support during this complex and protracted process and look forward to delivering a successful and financially secure future for Sheffield Wednesday."
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Weather for Sheffield
Wednesday 23 May 2012
Today
Sunny spells
Temperature: 13 C to 23 C
Wind Speed: 7 mph
Wind direction: North east
Tomorrow
Cloudy
Temperature: 11 C to 22 C
Wind Speed: 9 mph
Wind direction: North east
