Aberdeen Chairman Stewart Milne Proposes New Share Scheme to Reduce Club Debt
November 27, 2012
Aberdeen chairman Stewart Milne plans to adopt a new share scheme which he hopes will wipe off almost £6million off the club’s debt.
The proposal would see £3.7m due to Milne and £2.25m owed to Aberdeen Asset Management turned into shares, cutting the Dons’ debt to £10.82m.
Shareholders will next month be asked to vote on the matter at the club’s Annual General Meeting, which is to be held on December 19.
“Over the past few years the major shareholders have invested substantially in the club, with interest free loans now standing at £5.75million in aggregate,” Milne said in a statement on the club’s official website.
“Part of this amount has been used to finance the development costs of the new stadium and part to provide finance for the business.
“The major shareholders now wish to make this investment in the business permanent and to this end, and subject to shareholder approval, it is proposed to convert the loans over time into a new class of preference shares.
“After the ordinary business of this year’s Annual General Meeting has been concluded, the shareholders will be asked to vote on a special resolution which would create this new class of share.
“No new cash will come into the company as a result of this conversion but over time its financial position will be considerably improved by removing liabilities from its balance sheet totalling £5.75million and by the corresponding improvement in the ratio of its net assets to called up share capital.”
Aberdeen today announced their trading results for the year until June 30, 2012.
Turnover rose from £7.462m to £8.337m, while the operating loss fell from £589,000 to £334,000, chief executive Duncan Fraser reported.
The club are still investigating the prospect of a move from Pittodrie.
Milne added: “Preparations for the move to our new stadium at Loirston received a set-back when Aberdeen City Council rejected a request for an extension of time to conclude an agreement in relation to the Calder Park development and we continue to investigate options for Loirston and alternative sites with a number of interested parties and remain confident that a satisfactory solution will be found in due course.”