Administrators working to save Wigan have said the former owner Au Yeung Wai Kay has agreed to waive debts of around £36m owed to him by the club. It comes as reports of a new offer to take control of the club were dismissed and as uncertainty grew over the outcome of the administration process.
Last weekend, Yeung was revealed to have made inquiries about putting the club into administration last May, days before he completed his takeover. The true motives behind his purchase remain a mystery but it now appears he will not retrieve a single penny of the money his company, the Next Leader Fund, put into the club.
A statement on behalf of the administrators, Begbies Traynor, said: “We should like to ... inform fans that the Administrators have been in discussions with Mr Yeung, who has cooperated fully for the benefit of the club and who has agreed … to waive his rights to the repayment of the debts owed to him and to his companies.”
Wigan were relegated from the Championship last month after they were subject to a 12-point deduction for insolvency. Administrators said Yeung’s decision to waive his debts meant he was working “to ensure the survival of the club” with the possibility of a second, 15-point sanction, next season should they not be in a position to repay 25p in the pound to their creditors. The clearing of the debts owed to NLF make such a repayment “much more possible”, administrators said.
While the club are in a better position to avoid further punishment, any takeover seems to be moving further away. Begbies Traynor are understood to be in discussion with several parties, but there is no preferred bidder, with sources suggesting any progress is uncertain in a constantly changing environment.
One potential buyer has been ruled out, however, with claims that the businessmen Randy Frankel and Michael Kalt had made an offer, denied by administrators. According to Begbie Traynor “no credible bid” has been received from the pair.
“Talks are however continuing with serious bidders with a view to bring a successful sale to fruition,” the statement said.
The Wigan Athletic Supporters Club has raised £190,000 to help support the club and has now teamed up with local band Quaintest Show on Earth to release their single Good Old Days.
