Dundee United shareholders have voted to approve a plan by owner Mark Ogren to wipe out around £5 million of club debt.
Over 90% of the club’s shareholding okayed Ogren’s proposal to create 1,320,000 ordinary shares at 10p apiece, aiming “to reduce the overall debt of the company” and “attract and maximise potential future outside investment opportunities”.
Around £5 million of debt could be converted by the plan, while diluting Ogren’s 85% stake in the club.
United reportedly received no rejections of the owner’s resolution.
Around £12 million was owed to creditors (largely Ogren) in the accounts for the year ending June 2023.
The new shares move could open the door to external investment, with English Premier League side Brentford strongly linked with an interest in linking up with the Tangerines.
In a letter to shareholders outlining his debt resolution, Ogren confirmed discussions with potential investors in United have taken place.
However, he has insisted nothing concrete has yet come from those talks.
The club said: “On June 12, 2024, the Dundee United Football Company Limited circulated to shareholders a written resolution. Shareholders were asked to vote to accept or reject the resolution proposed.
“The club hereby announces that the required valid votes of over 50% in favour of the resolution have now been received, and the resolution has passed. For full transparency, no rejections have been received, and the positive response to the resolution resulted in over 90% of shareholding declaring acceptance.
“The board wishes to thank the shareholders who took the time to vote.”
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