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Newcastle ordered to reduce overdraft according to press

According to press reports, Barclays Bank will demand an immediate repayment of US$16 million from Newcastle United if the soccer club does not halve its US$65 million overdraft by Monday next.

'Newcastle have a £40 million working overdraft facility, of which, according to club sources, they owe Barclays approximately £20m – but that arrangement ends on Monday night,' reports The Guardian newspaper. 'Should Newcastle, currently making stringent efforts to reduce their liabilities by selling three players before the transfer window closes next week, fail to halve their current £20m debt level by Tuesday, Barclays will demand an immediate repayment of £10m. For every day it goes unpaid punitive rates of interest will be charged.'

The club's mooted takeover by Chris Moat would also be subject to stingent conditions from the bank, which would reportedly insist on an overdraft ceiling of US$16 million - the standard agreement it has with Championship clubs. 'The Tyneside property developer has not yet convinced Barclays, the club's bankers, he is worth the risk of underwriting," notes The Guardian. 'If Moat's bid collapses, Ashley will remain in control for another season before attempting to find a viable buyer next summer.'

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