On Friday (October 16) three representatives of the Trust's board met with council chief exeuctive David Kennedy and council leader Mary Markham.
This was the second such meeting we had held with the council, although this latest dialogue came shortly after it was publicised that HMRC had issued a winding up order against the football club.
A lot of discussion has been happening behind the scenes, but the Trust board is keen to keep fans in the loop as much as we can. We therefore are publishing the following questions and answers which were covered in the meeting.
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What due diligence in the context of what has happened could the council take on proposed new owners?
NBC: If new owners (or new majority shareholders) for NTFC or CDNL are presented to us we will carry out financial and company checks related to them. The Council does not have a veto on new owners/shareholders.
The Council is restricted in talking to those who may be interested in NTFC and CDNL by its contractual relationship with these companies but is open to talks with anyone introduced to the Council by CDNL or NTFC or parties working with them.
Can you envisage moving forward with a debt moratorium deal?
NBC: The starting point for any discussion will be the existing loan agreements with NTFC and the conditional land transfer agreement with CDNL. The Council must ensure that the public purse is protected and as long as that is the case would be willing to discuss any proposed deals. However, at this point no firm proposals have been made to the Council.
Can you envisage any deal going forward that involves David Cardoza?
NBC: Given the current ownerships of both, any deal that would involve someone else buying the controlling interest in NTFC or buying CDNL must involve Mr Cardoza.
What were the repayments that have been missed?
NBC: Payments have repeatedly been late, initially just by a few days, then by longer periods and we were warned that future payments are uncertain. The last 2 payments have been missed and total £39k. A further payment is due in the next few days.
What are the total liabilities of Northampton Town Football Club (The) Ltd?
NBC: Based on the latest published accounts in June 2014, they have long term liabilities of £14.697m and current liabilities of £2.245m. We believe that it is likely that liabilities have grown since then.
Can you elaborate on reports that you have spoken with the police?
NBC: We have taken the advice of the Police and updated them as to the position. We will continue to update them periodically.
Can the council account for the £10million?
NBC: The Council has accounted for the loans within its own accounts. Once passed to NTFC, the funds were partly kept by NTFC and partly passed to third parties. The largest element is a contract with First Land Limited to undertake the commissioning and implementation of Stadium improvements including the new East Stand for £8.2m. It is for NTFC to account for the use of the funds loaned to it by the Council. The Council has made proper enquiries as to the use of these funds but cannot say that it has been given a full and complete account.
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Today, another meeting of Trust members was held, and it was agreed that Trust representatives would attend a cabinet meeting of the Borough Council which is being held on Wednesday evening - in case the club's current issues are raised at any point.
We are also making efforts for a representative to attend the winding up petition hearing against County Developments Northampton Ltd, which is being heard in court in Birmingham on Thursday (October 22).
The Trust hopes to make a further statement within the next 24 hours.
We would like to thank Northampton Borough Council for agreeing to meet with us, and we are hoping to continue this dialogue with a further meeting soon.
As we have throughout this whole process, we would like to thank supporters for their patience and understanding.
