Shareholder group demanding repayment of 2014 loan to holding company
A group of West Bromwich Albion FC shareholders have instructed Gowling WLG to advise them on a dispute relating to a controversial £3.7 million loan the club made to its former owner.
Shareholders for Albion (S4A), a group representing a significant number of the club’s 430 minority shareholders, appointed Gowling, which has written to all of the club’s director to inform them that they will continue to pursue repayment of the 2014 loan that was made by the club to its holding company, which was owned solely by former owner Jeremy Peace.
S4A are demanding the repayment of the loan by new cash instead of via a dividend, which has been suggested as a possible method of clearing the debt, according to a report by The Athletic.
It is understood that the debt now stands at more than £5 million, with interest, and is held by West Brom’s current Chinese ownership, led by Guochuan Lai.