The taxpayer looks set to lose out on millions of pounds after a company owned by the Bank of Scotland’s former boss went into administration.
Ex-Dunfermline Athletic owner Gavin Masterton, once chief executive of the Bank of Scotland, was last week forced to place his East End Park Limited business into the hands of administrators.
The company owns the ailing Fife football team’s stadium but has a £12.2 million loan outstanding to the Bank of Scotland, now part of the Lloyds Banking Group, which has been called in by the taxpayer-backed institution.
The loan was handed to Mr Masterton with generous terms which allowed East End Park Limited to skip repayments for the next 35 years.
Bosses at the Edinburgh-based bank do not think they will get all of the money back, meaning millions of pounds of the debt is likely to be written off.
