English Premier League newcomer Cardiff City has announced it has reached an “amicable resolution” with creditors Langston Corporation over the club’s long-standing debt.
The Press Association Sport news agency reports the debt to Swiss-based financial company Langston, of whom the Welsh club’s former owner Sam Hammam is a representative, was taken out in 2004 and was believed to be worth £24 million. Cardiff owner Vincent Tan is said to have agreed a deal whereby the club will pay a one-off lump sum and a schedule of further, smaller payments. Cardiff’s most recent financial results showed the club was £83 million in debt.
Tan said that the agreement “brings to a close a lengthy period of uncertainty”. He added: “This settlement allows us to look to a new era of financial stability, which should be celebrated by all connected to Cardiff City. I am delighted, primarily for the supporters of this great club that we can put this matter firmly behind us and plan for our future with confidence.”
Cardiff won the Championship title last season and will open its debut season in the Premier League with a trip to West Ham United on August 17.