Enschede football team FC Twente, relegated to the first division at the end of last season, has staved off bankruptcy after the city council agreed to a rescue plan.
After weeks of negotiations, city officials have now agreed to freeze interest and repayments of a loan made to the club over a two-season period. This gives the club €4m in breathing space, the Telegraaf reported.
In addition, some 30 of the club’s sponsors have agreed to invest €10m in the club in return for shares and a say in the make-up of the supervisory board.
‘This is an important agreement for the future of FC Twente,’ director Erik Velderman said. ‘And the great thing is, that it is being fully supported by the Twente region.’
Enschede city council has already made €17m in loans to the club and is guarantor for a further €8.4m.
Twente kick off their campaign to return to the Eredivisie on August 17 against Sparta of Rotterdam.
Two seasons ago, Twente managed to head off efforts by the Dutch FA to relegate them for failing to get their finances in order and meet a fifth ultimatum.
The club was also fined over €200,000 and banned from playing in Europe for three years because of the fall-out over a deal with investment company Doyan.
In 2014 Doyen agreed to put €5m into the club in return for a percentage of the transfer fee for seven players. However, leaked documents showed the deal gave Doyen considerable say over Twente’s transfer policy, which the club had denied and which is banned by the KNVB.
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