THE former owner of Dunfermline Athletic faces bankruptcy with his company set to be wound up.

Last month, the Press reported that Gavin Masterton faced financial ruin and that a petition to wind up Charlestown Holdings Ltd (CHL) in the High Court of Edinburgh would not be defended.

The legal action relates to the company’s unpaid loan to current club director Kip McBay, who had petitioned the Court of Session requesting CHL be wound up and an interim liquidator appointed.

Mr Masterton said at the time that the action made “a very difficult overall trading situation wholly untenable”, resulting in an “irretrievable financial position for CHL”.

He added, “This will also inevitably lead to my personal bankruptcy.” A winding-up order and petition were made on 2nd October and CHL – listed as a “public relations and communications business” – will undergo compulsory liquidation.

Mr Masterton is the sole shareholder in the company, which owned the Pars until the club’s financial problems ended in administration last year.

Eileen Blackburn, partner and head of business recovery at French Duncan LLP, said, “I can confirm that I have been appointed as interim liquidator for Charlestown Holdings.

“At this early stage of my appointment I can confirm only that there will be a thorough investigation into the circumstances leading up to the failure of the company but would add that, as the company had no employees, there are fortunately no job losses resultant from it going into liquidation.

“The first meeting of creditors has been called for Monday 17th November 2014. I shall be in a position to provide more detail to the creditors by then.”