Share deal to wipe £6m off Dons debt

Aberdeen chairman Stewart Milne has made a proposal to wipe almost £6 million off the club’s debt in a share scheme.

The proposal would see £3.7m due to Milne and £2.25m owed to Aberdeen Asset Management turned into shares, cutting the Dons’ debt to £10.82m.

Shareholders will be asked to vote on the matter at the club’s Annual General Meeting, which is to be held on 19 December.

“Over the past few years the major shareholders have invested substantially in the club, with interest-free loans now standing at £5.75m in aggregate,” Milne said in a statement.

“Part of this amount has been used to finance the development costs of the new stadium and part to provide finance for the business.

“The major shareholders now wish to make this investment in the business permanent and, to this end, and subject to shareholder approval, it is proposed to convert the loans over time into a new class of preference shares.”

Aberdeen yesterday announced their trading results for the year until 30 June, 2012. Turnover rose from £7.462m to £8.337m, while the operating loss “before interest, depreciation and amortisation” fell from £589,000 to £334,000, chief executive Duncan Fraser reported.

The club’s annual report showed a total loss for the financial year of £1,365,000, compared to £2,116,000 the previous year. Interest costs for the year were £600,000.