Leicester chairman Aiyawatt Srivaddhanaprabha has released the club’s £194 million ($239 million) debt owed to parent company King Power International (KPI).
The Premier League club said the loan was issued to KPI over the past four years to help build new training grounds and support investment in the squad through the coronavirus pandemic.
Loans and related interest have been converted into equity held by KPI in the club.
Leicester was bought by the Thai Srivaddhanaprabha family in 2010.
Over the past 13 years, the Foxes have enjoyed success on the pitch – including winning the Premier League in 2016 and the FA Cup and Community Shield in 2021.
Aiyawatt Srivaddhanaprabha has been the chairman since the death of his father Vichai in a helicopter crash outside the club’s stadium in 2018.
“We want to make sure we continue on that path from the strongest and safest financial footing,” Srivaddhanaprabha said in a club statement.
“I believe with all my heart in Leicester City and what the club can achieve for the fans, the people and the community – in Leicester, Thailand and around the world.
“The faith you continue to place in us to run the club responsibly with ambition and integrity guides our decisions and remains essential to us building one of the most successful eras in the club’s history.”
However, Leicester face a battle for survival in the Premier League this season.
Brendan Rodgers’ men sit 14th in the table, just one point above the relegation zone.