Leicester City official: The chairman converted a 194 million loan into equity, and the debt was written off
February 01 News Leicester City officially announced that Leicester City Chairman Aiyawatt Srivaddhanaprabha has paid off the club’s debt
outstanding debt of its parent company.
Over £194 million of the loan and associated interest has been capitalized as equity issued to King Power International Limited (KPI), which is wholly owned by the Srivaddhanaprabha family.
The loans have been provided to the club by the parent company over the past four years to build a new world-class training ground at Seagrave and continue to support the club’s investment in the team and women’s football during the COVID-19 pandemic.
These equity conversions help strengthen the club’s balance sheet, reduce interest costs and further demonstrate King Power International’s commitment to supporting the club’s long-term sustainable development.
It is the second such deal for the family since they bought Leicester City in 2010, having completed a £103m debt-to-equity swap in 2013.
In both cases, it ensures that all existing shareholders’ investments in the club are not carried over as debt.