Kilmarnock strike deal to erase debt
Kilmarnock lost 3-0 to Celtic in the Premiership last night, but there was at least welcome news about the club’s financial future.
Chairman Michael Johnston says he will stand down at the end of the season after striking a deal to wipe out the club’s £9.4million debt.
But the Kilmarnock chief says he will retain a place on the board after reaching agreement with the club’s bankers and creditors, Bank of Scotland.
The plan is to sell the Park Hotel facility – worth £2.5m – to investor Billy Bowie, with the profits used to reduce the debt. Bowie will also assume the rest of the club’s debt in return for equity. Former chairman Jamie Moffat will write off the balance of his loans to the club – originally £1.8m.
At Rugby Park last night, a hat-trick from Kris Commons secured victory for Celtic.