Hamilton Academical face insolvency fear if loan debt not paid

Hamilton Academical face being declared insolvent if they do not repay a financial services company used to pay wages.

The Funding Globe has a holding charge against the club, security against their assets after funds were borrowed to pay players and staff last year.

Previous owner Seref Zengin sold the Scottish League 1 club to Morley Sports Management at the turn of the year, but the debt remains unpaid.

“Hamilton Academical FC is currently under threat of administration following a default under its secured lending arrangements,” reads a statement on the Hamilton website.

“The Charge Holder has made repeated attempts to engage constructively and reach an agreed resolution, however matters remain unresolved at this time, including uncertainty regarding the true ownership of shares.

“Further updates will be provided in due course.”

When The Funding Globe loaned Hamilton money for the payroll, Jonny Towers, a company representative, was appointed as the club’s sole director.

Companies House records show Towers is still named as a director and nothing has been filed to show ownership of the club has been transferred.

“I can confirm that The Funding Globe is the charge holder, I remain a director of the club and there will be further updates in due course,” said Towers.

Two Morley Sports Management representatives, Neil Blankstone and Rob Edwards were appointed to the board on 3 January, stating at the time that Mr Towers and the Funding Globe were no longer involved other than as creditors with a “secure charge against the club”.

MSM declined to comment on the latest development.

When the takeover was announced however Mr Edwards told the BBC that the club was still at risk of being placed in administration but was confident insolvency can be avoided.