West Brom launch investigation into £3.7m 2014 loan
West Bromwich Albion have confirmed the launch of an independent investigation into a 2014 loan.
Shareholders for Albion, the club’s minority shareholders have pushed for a review into the £3.7m loan former chairman Jeremy Peace took out.
Peace borrowed the funds from the club into his own company WBA Holdings, with Shareholders for Albion claiming this may have helped Peace purchase more shares in WBA’s parent group.
This debt was then inherited by Guochuan Lai when he became the majority shareholder in 2016.
It’s estimated the interest for the 2014 loan has exceeded £1m, meaning the club is owed around £5m.
Chief executive Ron Gourlay said yesterday (Tuesday 20): “When I joined the club in February, I was asked by Shareholders for Albion to investigate the 2014 loan, and we have since worked with the group to agree the terms of reference for an independent investigation.
“I am confident the appointed King’s Counsel barrister will compile a thorough and detailed report which, whatever the outcome, will help us to move forwards in the best interests of the club.”
West From are facing more financial trouble as owner Lai missed his own £4.95m loan repayment.
Lai took out the loan from the club in March 2021 and was supposed to repay in September 2021. The next deadline of 31st December 2022 is now fast approaching.
