The Canadian co-owner of Peterborough United, R Stewart Thompson, and his fund OKR Financial Ltd, has appointed Law of Property Act receivers to take control of the League One club’s London Road Stadium following a long-running dispute over unpaid loans.
Julian Pitts and Paul Stanley of leading insolvency specialists Begbies Traynor were appointed as LPA Receivers of the assets by OKR Financial, a Canadian investment group which is the club’s largest creditor, following a £5.2m loan made to the club in 2021 that was secured against the 15,000-seater stadium, land and adjoining property.
The receivers are now responsible for the London Road ground and the other secured assets, with the aim of recovering OKR Financial’s outstanding debt of £6.6m, which remains outstanding despite ongoing efforts to recover the overdue loan payments since October 2022.
The appointment does not apply to Peterborough United Football Club Ltd as a business, which continues to occupy the stadium under the terms of its lease.
The appointment was made on 27 March 2023, and empowers the receivers to take immediate control of the ground and the surrounding parcels of land that were used as collateral to secure the loans made in 2021.
The appointed receiver has a legal responsibility to act in the best interests of the lender, doing all that is possible to recover the money owed in a timely manner. They have the power to force a sale of the property, and they can collect rent on the property and forward this to the lender.
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