MK LIONS face the winding up of one of the club’s businesses if a debt of £12,000 is not paid to creditors in the next two weeks.
A petition to wind up MK Lions Sports Foundation LTD – the charitable arm of the MK Lions organisation which helps to promote basketball in Milton Keynes – is being brought by City Renovations over an ongoing dispute regarding building and renovation works carried out at the Lions Arena in Winterhill earlier this year.
The Citizen understands that the dispute originally relates to a claimed debt of £80,000. On August 18 the Milton Keynes County Court made an order by consent that MK Lions Sports Foundation was to pay the sum of £8,500 by August 31.
However, that was not paid and MK Lions Sports Foundation now have until November 28 to pay the amount, plus costs incurred which total £12,000, or face a hearing at the High Court of Justice in London and the potential winding up of the business.
Lions chief executive Vince Macaulay said the club will pay the £12,000 owed to City Renovations, and that the MK Lions Sports Foundation business will continue to trade.
He said: “This came about due to City Renovations reneging on an agreed three year sponsorship which we fully expected to receive from them. It’s sad that they pulled out, then want to sue a charity, However the Foundation will be stronger for the experience.”
Ken Stangoe, the solicitor representing City Renovations, said: “As a longstanding supporter, my client very much regrets having had to take this action.”