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Last Updated: Wednesday, 21 June 2006, 15:47 GMT 16:47 UK
Council loan to help Wrexham FC
The Racecourse Ground. Photo: Ted Blair
The council said the loan decision was 'commercial'
Wrexham Football Club has been thrown a financial lifeline by the local council to help secure its long term future.

The council's executive board agreed a short-term loan, believed to be about 400,000, to support a takeover bid to take the club out of administration.

Administrators hope the 3.3m deal will be finalised next week.

The council said it would work closely at helping secure the long-term viability of Wrexham's Racecourse stadium.

The consortium is led by Wrexham car dealer Neville Dickens and Chester travel agent Geoff Moss.

Council leader Aled Roberts said: "The council will now work closely with the prospective purchasers and will be working with partner organisations to secure long term viability for the Racecourse ground as a regional stadium."

Expulsion

The council said the terms of the loan must remain confidential but it had "taken a strictly commercial view in coming to this decision".

Councillors have already granted outline planning permission for the consortium to go ahead with a multimillion-pound redevelopment around the edge of the stadium.

The scheme includes an eight storey block of flats for 300 students at the nearby North East Wales Institute, together with private apartments, a retail area and a new stand.

Meanwhile, consortium members met Football League officials in Preston on Wednesday to explain their plans.

Administrator Dave Ackland, who was also at the meeting, said the plans had been well received and was hoping that the deal would be completed by the end of next week.

This would involve the deeds of the Racecourse being handed over in return for a 3.3m cheque.

Earlier this month the league voted to accept the consortium's rescue plan and allow more time for the deal to be completed so that the Dragons can continue to play in League Two next season.

The league's original deadline for Wrexham to be taken out of administration or face expulsion expired on 3 June.

Last month, creditors of the club, which went into administration in December 2004 with debts of 4.7m, voted to accept a dividend of at least 27.7p in the pound.




SEE ALSO
Wrexham FC takeover gets go-ahead
30 May 06 |  North East Wales
Smith backing new Wrexham buyer
30 Apr 06 |  Wrexham
Ex-soccer club directors' inquiry
21 Apr 06 |  North East Wales
Wrexham FC revamp plan revealed
12 Apr 06 |  North East Wales

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