Trondheim officials propose new loan guarantees for Ranheim IL

Politicians in Trondheim are moving to re-establish a municipal loan guarantee for Ranheim IL to prevent the sports club from facing bankruptcy. The previous guarantee lapsed after it was revealed that the club had used earmarked funds for a private parking cellar instead of repaying debt for a new multi-purpose hall.

While the city council intends to protect youth and children's sports, they have issued sharp criticism of the club for what they describe as improper double-financing. The council also criticized the bank, KLP, for attempting to shift 100 percent of the risk onto the municipality. The new guarantee will be conditional on the municipality receiving collateral in the club's leasehold rights and the Ranheim Activity Hall to prevent the city from being left with debt if the club defaults again.