Tom Piatak snr says his Castle Sports Group company have bought Carlisle United’s debt from Purepay Retail Limited.

And the new owner says the Blues’ £2.6m debt will soon be “disposed of” in a “tax-efficient” way.

Piatak and his family negotiated a resolution to the long-standing debt issue with Purepay before completing their takeover of the club.

The American businessman confirmed to the News & Star details of how the situation was dealt with so that their deal for United could get over the line.

“Castle Sports Group purchased the debt,” said Piatak snr.

“We did that so the debt is no longer an obstacle for the club.

“There’s no interest payments going forward.

“Our plan is to look at it from a tax perspective and say what is the best way to dispose of the debt so it doesn’t affect the club in a negative manner.

“So it is completely handled, it’s been purchased, it’s off and it will not affect 1921 [United’s operational company] going forward and will soon be disposed of in the most tax-efficient method for both parties.”

News and Star: Tom Piatak snr and his family in the Legends Lounge before the Charlton gameTom Piatak snr and his family in the Legends Lounge before the Charlton game (Image: Ben Holmes)

The debt, a legacy from United’s loans from Philip Day’s Edinburgh Woollen Mill, was transferred to another company, Purepay, after EWM went into administration during Covid-19.

The situation became a growing frustration for the Blues as the debt gathered growing interest and with a resolution elusive for some time.

Piatak himself had described it as a “significant hurdle” but also expressed his “confidence” in September that he could address the matter.

The Florida businessman, who will attend a press conference with his family at Brunton Park today, having received a remarkable reception at their first game in charge against Charlton Athletic on Saturday, added: “I committed we would get it resolved - I just had to have communication.

“I will say [it was] a little bit more challenging than I’d hoped. I do not think Purepay was necessarily a friend of the club.

“But I wouldn’t let it hold it [the deal] up. When you look at it in the big scale, it had to be dealt with.

“It is dealt with, it’s off to the side now, and we can move forward.”