Home Debt Carlisle United: debt talks progressing, club confirms

Carlisle United: debt talks progressing, club confirms

by admin

The Piatak family’s Castle Sports Group purchased United’s £2.6m debt from previous lenders Purepay Retail Limited.

Owner Tom Piatak told the News & Star at the time that talks would unfold aimed at “disposing” of the debt in the most “tax-efficient” way.

And United say that process is under way, with the desired outcome one that will not harm the club.

In an official update circulated to supporter groups, Carlisle’s chief executive Nigel Clibbens wrote: “We now have no interest-bearing debt. We have no third party secured debt either.

“Steps are continuing to deal with the secured intercompany debt with Castle Sports Group (arising from the Purepay debt).

“Actions to settle the CSG intercompany debt balance in a way which is beneficial and not detrimental to the club are progressing. The outcome will be confirmed.”

The Piataks bought the debt after United’s previous regime had failed over a long period to find a resolution with Purepay.

The debt was a legacy of Carlisle’s previous loans from Philip Day’s Edinburgh Woollen Mill, the amount then “novated” to a new company, Purepay.

Upon buying the debt, Tom Piatak said the recent past cast doubt over whether Purepay was a “friend of the club”.

Clibbens also said the continued uncertainty over the debt until the Americans’ takeover had presented a “clear and growing danger” to the club.

Tom snr and Patty Piatak are heading back to Carlisle for a month-long stay and are set to attend Saturday’s home clash with Bolton Wanderers.

On the financial front, meanwhile, Clibbens added: “Following the takeover of the club [in November], the 22/23 audit will be now completed in January 2024 with accounts published after that. 23/24.

The audited loss before tax is affected by material post-balance sheet events arising from the takeover. These are positive and improve the position but now must be reflected in the accounts.”

The latest CUSG minutes, meanwhile, reveal that a fans’ forum is being planned for south Cumbria next month, with an event in Kendal on Tuesday, February 6 scheduled.

The full CUSG minutes can be read HERE

You may also like

Leave a Comment