Bank of Scotland ‘writes off’ over £11 million of Masterton debt

A £12.2 million loan to the former chairman of Dunfermline Athletic has almost entirely been written off by the Bank of Scotland, it is understood.

Just £600,000 of funding granted to Gavin Masterton’s East End Park Ltd group in 2008 has been recouped, with the taxpayer-backed bank understood not to be expecting any further repayment.

The loan was secured against Dunfermline’s stadium, which was valued in 2008 at £11.2 million.

The stadium was sold last year to fans group Pars United Limited for £700,000, with £600,000 of that returned to the bank and the rest covering the cost of administrators.

Willie Rennie, Scottish Liberal Democrat leader and Mid Scotland and Fife MSP, said: “It’s a bargain basement deal for Pars supporters, but is the kind of loss even Fred Goodwin would blush at.

“There will still be rough times ahead, but Dunfermline is on the right track now and has the potential to be a thriving club once again.”

Mr Masterton could not be reached for comment.