Port Vale takeover to cost Stoke-on-Trent City Council £1m
- Published
Port Vale entered administration in March after being hit with a winding-up petition
Stoke-on-Trent City Council expects to write off more than £1m of its £1.86m loan to Port Vale Football Club.
It comes after creditors were told how much they stand to get back if the preferred bidder to take over the club, Keith Ryder, succeeds.
Documents released to creditors and shareholders show they will receive 3p for each pound owed.
The council would receive £800,000 in return for Vale Park's freehold and the same 3% return on the remaining £1.06m.
The largest share of the club's £2.7m debt is the outstanding £1.86m loan from the city council.
In addition, the council has funded the costs of the club going into administration which stands at £200,000 so far.
Administrators Begbies Traynor revealed that Mr Ryder, a Lancashire businessman with a background in property development and financial services, submitted the largest offer out of five official bidders.
Port Vale entered administration in March after being hit with a winding-up petition due to an unpaid tax bill, as well as concerns about outstanding loan payments.
The city council's cabinet is meeting later to discuss the proposals.