Villa’s £6m loan staves off administration – for now

Aston Villa are set to avoid the imminent threat of administration after owner Dr Tony Xia secured a £6million loan.

Xia, Villa’s beleaguered chairman, has agreed a deal which will enable the cash-strapped club to settle their £4.2million 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 windingup order from HMRC if they had failed to make the tax payment by early next week.

Villa held an emergency meeting yesterday with insolvency expert Trevor Birch present, and the possibility of Xia eventually selling up cannot be ruled out.

Xia bought Villa from American billionaire Randy Lerner for around £75 million two years ago and it will require a similar figure to keep the club going for their third season in the Championship.

The struggling club missed out on a £170million Premier League jackpot when they lost the play-off final 1-0 to Fulham last month.

This latest development at least allows Villa to pay their wage bill to players and staff, but will not have much effect on the larger financial crisis they are facing.

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 £30 million-rated midfielder Jack Grealish is likely to be sold.

Grealish is a target for a number of Premier League clubs, including Leicester City, and his sale could provide his beloved club with a huge financial boost.