TWTD understands that there is little in reports earlier today claiming that a venture capitalist company wants to buy Town's £36 million debt. Town have previously denied that a consortium was looking to organise a similar arrangement.

It is our understanding that the club and Morley Fund Management have in principle agreed to write-down the £28 million owed on the bond to a figure below £10 million.

Morley, part of the Aviva group which also includes Norwich Union, is not responsible for the further £8 million owed to Barclays (the overdraft built up prior to administration) and the Bank of Scotland (mortgage on the training ground).

The deal will see as yet unknown investors — unlikely to be hedge funds as reported elsewhere - pay off the reduced Morley debt and provide Jim Magilton with a transfer kitty.

David Sheepshanks is almost certain to continue as chairman with the new investors expected to either take a stake in the club or provide their cash in the form of loans, as is often the case with football clubs.

If an interested party wanted to take more than 29.9% stake in the club they would be legally obliged to make an offer for the rest of the share capital. Were they to take a 90% share, they would be able to compulsorily buy the rest of the shares. Town's own rules stipulate that shareholders would vote on any individual or group taking a 15% take in the club.

Town have been speaking with Morley for some months regarding the write-down and have also held talks with a number of potential investors.

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