Leicester City chair Aiyawatt Srivaddhanaprabha relieved the club of debts to parent company King Power totaling over £194 million (Ksh 30 billion).
According to a statement by the club, the debts have been accumulated over the last four years.
The club took loans to fund the construction of Leicester's new world-class training ground at Seagrave and to support the Club’s investments in its squad and Women’s football during the pandemic period.
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“Maintaining long-term stability is vital for sustainable growth. We want to make sure we continue on that path from the strongest, most secure financial footing," Khun Top stated.
A statement by the club added that the conversion into equity serves to strengthen its balance sheet, reduce its interest costs, and provide further evidence of King Power International’s commitment to supporting the Club’s long-term sustainability.
This is the second time King Power International has done this as back in 2013 a £103 million (Ksh16 billion) debt-to-equity transfer also took place.
In both cases, it has been ensured that all existing shareholder investments in the Club are not carried forward as debt.
Leicester City was acquired by the Srivaddhanaprabha family in 2010 making the club part of its King Power Group.
Under KIP, Leicester has risen from the Championship, second tier to the Premier League.
Leicester has found quite some success over the years with the club winning the Premier League in 2016, winning the FA Cup and Community Shield in 2021.
Under the new ownership, the club has featured in three European campaigns.
Leicester is struggling with form in the 2022/23 Premier League season having gone five matches without a win, four losses and one draw, positioning the club at 14th one point away from relegation.
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