Watford avoid administration

Published Add your comment

Watford have staved off the threat of administration by paying back nearly £5million that had been owed by the club to their former chairman and vice-chairman.

The Hornets looked set to be forced into administration after chairman Jimmy Russo and brother Vince rejected a £7.5million rights-issue package from majority shareholder Lord Michael Ashcroft last week.

Jimmy Russo, who resigned last Tuesday, had insisted the club must pay back the £4.88million he had lent them.

A club statement read: "Watford Leisure announces that on December 21, 2009 Fordwat Limited paid approximately £4.93million to Valley Grown Salads in full and final settlement of VGS' demand of 15 December 2009 for full repayment of approximately £4.88million in loans previously made available to the Company.

"The sum of £4.93million paid by Fordwat included accrued interest and a contribution to the legal fees of VGS (in accordance the loan agreement between VGS and the Company).

"In connection with the above payment, on December 21, 2009 Watford Leisure signed an agreement with Fordwat for a loan to the Company of approximately £4.93million, repayable on demand and accruing interest at the rate of 4.5% above the base rate of Barclays Bank plc (except in default when the rate rises to base rate plus 7.5%).

"Furthermore, it is the understanding of both Watford Leisure and Fordwat that security over the Vicarage Road Stadium for the Fordwat Loan, replacing that of VGS, will be put in place in due course. The purpose of the Fordwat Loan was to prevent the company being placed in administration by VGS."

Copyright (c) PA Sport 2009, All Rights Reserved.

Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE:


Article Comments

Report author of article

Please let us know if you believe this article is in violation of our editorial policy, please only report articles for one of the following reasons.

Report author


This article has been written by a member of the GiveMeSport Writing Academy and does not represent the views of or SportsNewMedia. The views and opinions expressed are solely that of the author credited at the top of this article. and SportsNewMedia do not take any responsibility for the content of its contributors.

Want more content like this?

Like our GiveMeSport Facebook Page and you will get this directly to you.

Already Subscribed to Facebook, don't ask me again

Follow GiveMeSport on Twitter and you will get this directly to you.

Already Following, don't ask me again

Like our GiveMeSport Page and you will get this directly to you.

Already Subscribed to G+, don't ask me again