Forest could lose ground

14 April 2012

Nottingham Forest could be forced out of the City Ground if the club does not repay debts of £4.5million this summer, local councillors have warned.

The club this week failed to make an interest payment of £209,000 on a £4.3million loan which was obtained in 1994 to develop the stadium into an all-seater venue.

Nottingham City Council agreed to act as loan guarantor to help the development and allow the City Ground to host Euro 1996 matches, but has warned that it will take action if it is forced to underwrite further missed payments.

'As a result of the club defaulting on its latest loan interest repayment, the City Council, as guarantor, has paid the overdue amount of £209,000 to the lender from its own funds,' said a Nottingham City Council spokesman.

'In accordance with the terms of the guarantee, the City Council is seeking a reimbursement of this sum from Nottingham Forest.

'The City Council is surprised and disappointed that it received no prior official notice from Nottingham Forest that it would not make its latest repayment.'

The spokesman confirmed that if the club is unable to repay the £4.3million balance of the loan in June, the authority will become liable and may be forced to sell the City Ground to recover the costs.

'The city council, as guarantor, would be liable for any non payment and one of our options would be to sell the ground,' he said.

A club spokesman today declined to comment on the matter.

Meanwhile new Forest manager Joe Kinnear has made his first move in the transfer market and completed the signing of Leicester pair Alan Rogers and Andy Impey on month-long loan deals.

Full-back Rogers, 27, was sold by Forest for £300,000 to the Foxes in November 2001 in a bid to try and cut the club's crippling wage bill.

But he has found opportunities limited with Leicester and has returned to his former team to get some first-team football.

Both players are expected to make their debut in tomorrow's home clash with Walsall.

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