Watford's future has been secured for another season after the club's shareholders agreed to back Lord Ashcroft's £7.5million rights issue.
The Hornets were hours from going into administration over Christmas until Lord Ashcroft, who is the club's majority shareholder, stepped in with the proposal.
Lord Ashcroft is underwriting £7.5million while former chairman Graham Simpson and director David Fransen will convert their existing loans to restructure the club's £8.63million debt and make a further £1.5million available for the running of the club.
A club spokesman told Press Association Sport: "It cleans up the balance sheet for the next year. The club will seek to raise other funds as normal but this gives the club some breathing space and means no drastic decisions have to be made."
Watford will still have to raise funds through player sales but there should be no repeat of last summer's fire sale which left the Hornets facing a relegation battle in the Coca-Cola Championship, which they survived last week.
An EGM has been called for May 17 when shareholders will be asked to endorse the proposals.
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