YORK City's Supporters' Trust board have given their explanation as to why the repayment conditions of JM Packaging's £300,000 loan needed to change.
The loan, which was facilitated for the club by the Malton-based company in January 2005 to provide essential funds, originally contained assurances that it would only be repayable when KitKat Crescent was sold.
But, earlier this year, JM Packaging, owned by City managing director Jason McGill, indicated to the Trust that the £300,000 loan would now be repayable in January 2007.
The change caused former Trust board members Mike Grant, Kirsten Ovenden and Dave Potter, who have since resigned from their positions, to claim they were misled over the original terms of the loan agreement.
About the reasons for the January settlement date, a Trust statement said: "The facility had initially been established by JMP and their bankers on an overdraft basis, interest bearing, but, in October 2005, it had been converted at the bank's insistence into a capital repayment loan but with a repayment holiday until January 2007.
"Some people recognise that this change of circumstances since January 2005 provides a reasonable basis for JMP not to roll forward the loan indefinitely, whereas others apparently feel that JMP should roll forward the loan regardless of the change in circumstances."
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