Carlisle United director Tom Piatak II has been giving fans an update on the club’s progress in clearing debt.
He spoke to the official website about the debt the club have to Castle Sports Group following the transaction with Purepay.
“As fans already know, Castle Sports did purchase the debt of over £2.4 million, in full, from Purepay,” he said.
“In the past week or so, we’ve managed to get with the accountants and find a way to get that forgiven, so it will not be affecting the club.
“That was one of the big things we stated when we came in. We wanted to be debt free, we’ve made the commitment to be debt free and we’re close to getting that done.
“Being debt free is something we take pride in with our business back home in Florida and it’s something we want here at Carlisle, and we think it’ll be great for the club and will help it move forward in a positive manner.”
Chief executive Nigel Clibbens added: “Fans know we have been looking at ways to deal with this issue.
“Steps to forgive and waive the intercompany debt due from the club to Castle Sports Group (arising from settlement of the Purepay debt) have now been agreed and will be affected in 23/24 this financial year.
“The final settlement figure paid to Purepay of £2.45m was a nominal discount of just £189,000 against the total capital value of £2.1m and over £500,000 of interest charged the club had been charged on the debt. The discount was equivalent broadly to the extra debt interest charged in 22/23 alone.
“This debt forgiveness releases the club from the £2.45m debt now due to CSG and makes the club debt free apart from the unsecured and interest free, legacy Pioneer debt which is being cleared over a five-year period, in a deal we agreed before the takeover last year.
“It will also give rise to a significant exceptional income gain in 23/24 which will benefit the financial results for the year. Then finally, with no other debt apart from to Pioneer, all the club assets will then be free from security once again too.
“All of this is brilliant news for the club. The approach of the Piataks to dealing with this has been fantastic.”
