Town have returned Florida-based businessman Michael Anderson's investment in the club. The Blues withdrew their offer of a directorship last week after revelations that the 52-year-old Londoner had previously been on the boards of Aldershot and Kettering in the early 1990s.

Chairman David Sheepshanks told the club site that after talks with Anderson it had been decided that the £500,000 investment would be returned: "The board has considered the position with regard to the proposed share investment by Michael Anderson.

"I have subsequently had a further discussion with Michael and we have mutually agreed that it would be in the best interests of all concerned that the money deposited with us be returned to his company [Flairford Inc, in whose name Anderson bought his 15% stake in Town].

"This is made possible by virtue of the fact that the shares had not yet been issued or registered. Therefore Michael Anderson will neither be a shareholder nor a director of Ipswich Town Football Club.

"This whole episode has been highly regrettable. The invitation and investment were made and accepted in good faith, however, following the events of Friday I feel strongly that this decision will be best for both parties.

"It is important to emphasise that additional investment was made at the same time as Michael Anderson's and that the club can afford to make this repayment without adverse affect on the playing squad.

"This episode aside, the club is in a much stronger position than was the case a week ago. Agreement has been reached with our three lenders that will enable a consolidation of the squad over the coming two to three years, and other new investment has been made.

"Our new striker Alan Lee has been acquired and we saw a spirited and stirring performance on Saturday from both players and crowd alike that bodes much better for the future. Now we move forward."

Sheepshanks said on Friday that the club will continue to look for new investment with another share issue likely in the not too distant future.

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