Dundee get go-ahead to wipe out debt through £9m shares plan as door opens for Burnley investment

The Dark Blues called an emergency general meeting of shareholders.

By George Cran

June 7 2024, 10:32am

Dundee managing director John Nelms was joined by Burnley chairman Alan Pace in the stands at Livingston in January. Image: SNS

Dundee have been given the green light to push ahead with a £9 million shares plan that could open the door to Burnley investment.

An emergency general meeting (EGM) was held on Monday and saw two “special resolutions” pass.

The resolutions are designed to allow Dark Blues owners Tim Keyes and John Nelms to convert £9m of debt into equity in the form of shares.

That could pave the way for investment from Burnley owners, ALK Capital, by wiping out club liabilities.

Dundee and the Clarets, recently relegated from the English Premier League, announced a “strategic alliance” in January.

Dundee owners Tim Keyes and John Nelms. Image: Shutterstock/David Young

That saw four players in total being sent on loan to Dens Park in Marcel Lewis, Owen Dodgson, Dara Costelloe and Michael Mellon.

In announcing the link-up, Burnley chairman Alan Pace didn’t rule out putting money into Dundee.

Last month, Dundee FC’s company secretary Lindsay Darroch said: “The announcement this morning of Dundee Football Club calling an extraordinary general meeting is to allow shareholders to vote on resolutions that will allow existing debt to be converted into equity and also allow for further inward investment into the club.

“If approved by shareholders, this will enable Football Partners Scotland to convert loans into shares and allow them to make and to seek from others further investment into the club.

“This motion further illustrates the current owners’ long-term commitment to Dundee Football Club.”

‘Passed’

Shareholders attended the meeting at D&A College on Monday and the resolutions passed.

Burnley chairman Alan Pace makes a phone call — Burnley chairman Alan Pace. Image: Shutterstock

A Dundee statement read: “On the 3rd of June 2024 at 9.30am, The Dundee Football Club Limited (the “club”) held an extraordinary general meeting (EGM) at the Dundee & Angus College Campus, Gardyne Rd, Broughty Ferry, Dundee DD5 1NY.

“Notice of said EGM was sent to the members of the club by post, and advertised on the club’s website, as well as in the Dundee Courier and the Edinburgh Gazette.

“The club hereby announces that the two special resolutions, as proposed within the notice of the EGM, were passed by the members of the club.

“The special resolutions were passed by over 75% of the requisite voting majority of the shareholders in accordance with the articles of association for the club, and applicable law.

“The club wishes to thank the members who took the time to come to the EGM in person and vote.”