Aston Villa are set to avoid the imminent threat of administration after owner Dr Tony Xia secured a £6 million loan.
Xia, Villa’s beleaguered chairman, has agreed a deal which will enable the cash-strapped club to settle their £4.2m tax bill and pay wages for later this month.
The Chinese businessman is struggling with short-term cash flow, due to strict rules on finances in the Far East, but the move is set to remove the immediate prospect of administration as the club battle to find a solution. Villa were also facing a winding-up order from HMRC if they failed to make the tax payment by early next week.
Villa held an emergency meeting on Wednesday, with insolvency expert Trevor Birch present, and the possibility of Xia eventually selling up cannot be ruled out.
Xia bought Villa from Randy Lerner for around £75m two years ago and it will require a similar figure to keep the club going for their third season in the Championship.
This latest development allows Villa to pay their wage bill to players and staff for later this month, but the club are still gripped in a financial crisis.
Keith Wyness, the chief executive, has been suspended while the futures of manager Steve Bruce and sporting director Steve Round are also uncertain.
Villa are considering the sale of private land to assist their desperate bid to bring in money, while £30m-rated Jack Grealish is likely to be sold.
Grealish is a target for a number of Premier League clubs, including Leicester, and his sale could provide his beloved club with a huge financial boost.