A winding up petition issued against Morecambe Football Club by two former directors over a land debt has been withdrawn after a ‘positive resolution’ was reached between the two parties.
Graham Hodgson and Nigel Adams of Ascot & Ryley LLP issued the petition on April 30, in a dispute centring around a piece of land close to the Mazuma Mobile Stadium, home of Morecambe FC.
The matter dates back to 2013, when the pair purchased a parcel of land from the club located between The Hurley Flyer and what is now the new housing estate and fronting Westgate, to assist with cash flow.
In 2022, the club moved to buy the land back over a five year period.
Regular repayments were made on the amount owed, but when the ownership of the club was transferred from Bond Group to Panjab Warriors in August 2025, the outstanding amount, which was £84,000, became immediately payable to Ascot & Ryley LLP, via a standard change of control clause in the agreement.
It was agreed that the amount would be paid in three instalments, but after the initial payment was safely received, no further payments were made, with £56,000 outstanding.
After attempts to resolve the matter were unsuccessful, Ascot & Ryley issued the winding up petition in an attempt to settle the debt.
Read more: Row over Morecambe FC debt as ex-directors' firm issues winding-up petition against club
Last month, Mr Adams and Mr Hodgson wrote an open letter to Shrimps fans saying they had been "left with no option" but said they would withdraw the petition if payment is made.
Now, following discussions, a deal has been reached to settle the matter.
A joint statement, Morecambe Football Club and Ascot & Ryley LLP said: ‘’Morecambe Football Club and Ascot & Ryley LLP are pleased to confirm that a positive resolution has been reached, resulting in the immediate withdrawal of the winding-up petition against the Club.
‘’We are both pleased to report that following a positive and mutually respectful meeting, we have reached agreement to settle the dispute between us. This confidential agreement involves the immediate withdrawal of the current winding-up petition.
‘’The Club confirms that it has updated the relevant footballing authorities with news of this positive development.
‘’Each party thanks the other for their professional approach to these discussions and negotiations and will not be making any further comment on the matter.’’
A winding-up petition is a serious legal action which can be taken by creditors, whereby an application can be made to the court to close or ‘wind up’ a company.
Mr Hodgson was a director of Morecambe FC from 1992 to 2013 and is also a former vice-chairman. Mr Adams, also a former vice-chairman, was a director from 2012 to 2016.
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