Scottish football club Dundee United has today (7 February) reached a settlement with its bankers to close off its debt position.
The club has announced it has completed a “major restructuring” of its financial position.
Working with the Bank of Scotland, the club managed to clear £3m from its bank debt.
The bank has agreed to discharge the best and release the standard security held over the club’s property.
Stephen Thompson, chairman of Dundee United, said: “In recent years we have worked closely with the bank to reduce our tem loan debt by almost half, from a peak of £6m to just over £3m today, whilst at the same time continuing to trade and operate the business as normal in a highly competitive and difficult market.
“At times this has been challenging, but we have risen to this challenge and are now in a position whereby we feel able to operate the business without any further reliance on bank lending.
“Importantly, this restructuring will also allow us to utilise the club’s assets to a greater extent for the benefit of the local community and we will be providing details of our plans for this over the coming weeks.”
Earlier this week, Leeds United FC were issued with a winding up petition by shirt sponsor Insurance Enterprise, while Conference club Hereford United averted a winding-up threat by raising the funds to pay an outstanding tax debt.