West Brom in Legal Dispute With Fanbase Over £3.7m Loan to Former Owner Jeremy Peace
West Brom have found themselves in a legal argument with their own fans after making a controversial £3.7m loan to Jeremy Peace back in September 2014.
Peace was the former owner of the club, but he ended up selling the Baggies to Guochuan Lai for £200m.
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The Daily Mail report that WBA Holding Ltd - Peace's company - are yet to repay the loan, which has now defaulted, leading to some fans and shareholders to protest and demand answers.
Shareholders 4 Albion hold around 6% of the shares at the club, and have since written to chief executive Mark Jenkins to demand an extraordinary general meeting about the issue.
The loan had huge effects on the future of the club, as Peace used it to up his stake in the club from 65% to 88%, which meant he was then able to sell the club for £200m two years later.
The shares where trading at £24,000 apiece, which was eight times what the company had initially paid.
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The anger has intensified due to the fact that West Brom announced recently that they are unable to repay the loan and any subsequent interest, because of restrictions of the Chinese Government.
The club simply say that the loan was to take advantage of favourable rates of interest, but both the hierarchy and Peace have failed to provide a comment. As well as that, West Brom are yet to reply in regards to a meeting with the fans.
S4A issued a Section 303 notice under the Companies Act, as a result demanding a meeting. West Brom have disputed the notice, and due to the 21-day period for a club to call a meeting in the Companies Act now running out, the fans and club are stuck at legal loggerheads.
