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Cardiff City have settled their biggest and longest standing debt after finally agreeing a deal with main creditor Langston.

With a High Court judgement looming, the two parties finally settled on a compromise with the Bluebirds agreeing to pay off the outstanding debt today.

WalesOnline understands that payment, which needs to be settled within 30 days, is in the region of £5m.

The Bluebirds will also pay a figure believed to be under £2m if and when they earn promotion to the Premier League. There is no time limit on that agreement, we understand.

The Bluebirds are said to be content with the agreement which finally ends any association with Langston. It has now emerged that Langston is in fact a company run and owned by former club owner Sam Hammam.

(Image: Action Images / Lee Mills)

The Bluebirds hierarchy had from the start insisted they would not continue paying money to Langston without knowing who was behind the Panamanian-based company. They are now satisfied that Hammam is indeed behind Langston and happy to bring the matter to a close.

Despite the deal done, Hammam will keep the title of Cardiff City Life President although he will never be allowed on the board himself or to appoint a representative of his, we understand

The final negotiations with Langston were dealt with by Cardiff chairman Mehmet Dalman. It is understood the amount will be dealt with by owner Vincent Tan, thus avoiding the threat of administration the actions of Langston had left hanging over the Bluebirds.

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Today’s deal brings to an end a incredibly long chapter in the Bluebirds’ financial history.

The club and Panama-registered Langston were set to face off in the High Court over £5.7m still owed by the Bluebirds on £24m in loan notes taken out by then-Cardiff owner Hammam from Langston back in 2004.

Four years ago, the two parties reached agreement on a £22m settlement, to be paid in the form of £15m up front, followed by £7m in £250,000 quarterly instalments over seven years.

The Bluebirds had been honouring that, but last year suspended payments, citing the fact they were concerned they do not actually know who is behind Langston.

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