Town chief executive Derek Bowden has denied last week's newspaper reports of a mystery consortium buying the Blues' debts. However, TWTD understands that the club are themselves trying to negotiate a write-down of their overall debt, which currently totals £36 million.
Last week's report claimed a group not linked with the current board were keen to buy the debt, however Bowden says there is nothing in the story: "There is no consortium.”
Bowden has also reiterated Town's repeated stance that talks with the lenders have been continuing over the last few years and are ongoing.
TWTD has learned that the Blues, having previously agreed an interest holiday of three years, are now working towards their overall debt being cut, possibly by around £20 million.
Town currently owe £28 million on the 2001 bond with Norwich Union, which paid for the new stands, plus another £8 million to Barclays, for the pre-administration overdraft, and the Bank of Scotland, for the mortgage which paid for the Playford Road training ground. Aviva, Norwich Union's parent company, have put another arm of their business, Morley Fund Management, in charge of Town's debt.
The interest holiday was negotiated last year with the Blues finding it increasingly difficult to meet the £2 million annual interest payments on the bond and remain competitive in the Championship.
Town agreed to give Norwich Union 15% of the club in exchange for three years' payments being waived. However, with relegated Premiership teams currently receiving £7 million parachute payments - a figure set to increase in future seasons - and other sides with ‘sugar daddies', the Blues are still a long way from being one of the division's more affluent clubs.
A reduction in the level of debt would make it easier for the Blues to find investors willing to inject more significant sums than has been the case in recent years, and would be a major step towards improving Town's ability to compete for promotion back to the Premiership.