Bank hand City stay of execution (From Worcester News)

Bank hand City stay of execution

7:20am Monday 30th November 2009

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Worcester City chairman Anthony Hampson has assured fans the club will not be forced to pay off their bank debt next month despite a possible setback to the sale of St George’s Lane.

The Blue Square South club owe the Royal Bank of Scotland around £1.55 million which was due to be paid back in full by the end of December.

It was hoped the cash would be raised by selling City’s century-old home to Careys New Homes for £3.5m and the bank being prepared to wait until the Wembley-based developer had its application heard on February 3.

But that date is now in doubt after Worcester City Council planning officers asked the firm, who in August deferred their plans to build 98 homes on the land, to make further revisions.

However, Hampson says RBS are satisfied with the progress being made with Careys and are not about to pull the plug.

The City chief, speaking after Saturday’s fans forum, said: “The situation with Careys is that they have been asked by the planners to revisit the scheme on this ground and make a number of modifications to their planning application.

“Whatever the outcome of that there’s enough to satisfy the bank, it’s a question of what we have left to move forward with our new stadium plans.”

Discussions are still on-going over relocating to Nunnery Way but the inclusion of a £750,000 pedestrian bridge remains a major obstacle.

City, who could remain at the Lane until June 2012 with the Careys deal, have also made enquiries about the Cinderella Sports Ground in St John’s, first proposed by the Shareholders Action Group ahead of last year’s annual general meeting.

Hampson said: “That’s on a 20-year lease with potential peppercorn rent which we would like to ask the council to consider because they have the option to sign up that lease from the owners.

“We would certainly like to sign up that ground and use it for community purposes — not so much an all singing and dancing new stadium but I see that as a potential for community use.”

Although City have a stay of execution with the bank, they will still need to pay interest on an £800,000 loan from the start of 2010 and are looking to two key fixtures to help swell the coffers.

They host Grays Athletic in the FA Trophy on Saturday, December 12 and Blue Square South leaders Newport County on Boxing Day — for which 650 tickets have already been sold to the South Wales side.