Leicester chairman Aiyawatt Srivaddhanaprabha has settled the club’s outstanding debt of £194m to parent company King Power International (KPI).
The club owed the proceeds of the loans to KPI, which is owned by the Srivaddhanaprabha family.
A debt-to-equity transfer to KPI was made to relieve the club of its outstanding debts.
Leicester said the move was proof of KPI’s “commitment to supporting the long-term sustainability of the club”.
“These loans have been provided by KPI to the club over the past four years to fund the construction of the club’s new world-class training ground at Seagrave and to continue to support the club’s investment in its team and women’s football during the Covid-19 pandemic,” the club said in a statement.
“Their conversion to capital serves to strengthen the club’s balance sheet, reduce its interest charges and provide further evidence of KPI’s commitment to supporting the long-term sustainability of the club.”
This is the second time that a capital debt transfer has been carried out under the ownership of the Srivaddhanaprabha family, with £103m debt relief in 2013and it ensures that all existing shareholders’ investments in the club will not be carried forward as debt.
Srivaddhanaprabha said: “Maintaining long-term stability is vital for sustainable growth and a fundamental principle that has always guided our investments in the future of the club.
“We want to make sure that we continue on this path from the strongest and most secure financial base.”
The Srivaddhanaprabha family took control of Leicester in 2010 and oversaw their rise from the Championship to the Premier League, their success of the title in 2016 and their FA Cup win in 2021.
“I wholeheartedly believe in Leicester City and what the club can achieve for our fans, our people and our communities – in Leicester, in Thailand and around the world,” added Srivaddhanaprabha.
“The trust they continue to place in us to lead their club responsibly, with ambition and integrity guides our decision-making and remains vital to us building on one of the most successful eras in the club’s history. .”