Leicester have announced chairman Aiyawatt Srivaddhanaprabha has relieved the club of the outstanding £194million debt which was owed to parent company King Power International.
The Premier League club said over £194m in loans and related interest had been capitalised into equity issued to KPI, which is wholly owned by the Srivaddhanaprabha family.
Leicester said in a statement: “These loans have been provided by KPI to the club over the last four years to fund the construction of the club’s world-class new training ground at Seagrave and to continue to support the club’s investments into its squad and women’s football during the Covid-19 pandemic.
“Their conversion into equity serves to strengthen the club’s balance sheet, reduce its interest costs, and provide further evidence of KPI’s commitment to supporting the club’s long-term sustainability.”
It is the second time the Foxes have completed a debt-to-equity transfer under the Srivaddhanaprabha family’s ownership, with £103m worth of debt relieved in 2013.
The conversion into equity has ensured all existing shareholder investment in the club will not be carried forward as debt, Leicester said.
Srivaddhanaprabha added: “Maintaining long-term stability is vital for sustainable growth and a fundamental principle that has always guided our investments in the club’s future.
“We want to make sure we continue on that path from the strongest, most secure financial footing.
“I believe with all my heart in Leicester City and what the club can achieve for our fans, our people and our communities – in Leicester, Thailand and around the world.
“The faith they continue to place in us to run their club responsibly with ambition and integrity guides our decision making and remains vital to us building on one of the most successful eras in the club’s history.”
The Srivaddhanaprabha family took control of Leicester from previous owner Milan Mandaric in 2010, overseeing their Premier League title success in 2016 and FA Cup triumph in 2021.