Mansfield Town FC and newly-returned director Steve Hymas, who went backto the club yesterday to head up the youth set-up, revealed on Friday afternoon they had “resolved their legal dispute over his loan to the football club.

Hymas, along with another former director, Andy Saunders, was trying to reclaim a loan of around £500,000. They both left the Stags and set-up non-league AFC Mansfield.

The club said in an official statement: “In a move that will improve the financial well being of the football club, Steve Hymas has agreed to convert his outstanding loans into preference shares.

“As part of the deal, (chairman) John Radford has also agreed to convert an equivalent amount of loans controlled by him into preference shares. The move will wipe out nearly £1m of debt from Mansfield Town’s book. It also reduces the money the football club has to pay on its legal bills in fighting the court action.”

Hymas told the club’s official website www.mansfieldtown.net: “Anyone who has ever known me knows that I love Mansfield Town Football Club.

“I am delighted that John and I have been able to do something, which settles our differences, strengthens the financial well-being of the football club and allows me to get more involved with grass roots football.

“I am glad this is all over and I hope that all fans will now get behind the football club for the remaining matches of this season.”

Chairman John Radford said: “This is another great day for our marvellous club. We have effectively removed £1m of debt from the club.

“This is really important as financial rules around the running of a football club are coming under much greater scrutiny from those who run the game. Similarly, it is great that Steve is coming back to help the football club. I just hope that all the fans will now get behind the football club, the players and the manager.“

Mr Radford added: “We have eight games to play and if we could win all of those games it would be a great end to the season! Come on you Stags!”