Watford have moved to avoid entering administration by asking former chairman Jimmy Russo to suspend his demand for repayment of a £4.88million loan.
Russo resigned as chairman on Tuesday evening and set a deadline of Thursday afternoon to receive the cash - a move which would mean the Hornets would have to call in the administrators and face a 10-point penalty from the Football League.
But major shareholder Lord Michael Ashcroft has underwritten a £7.5million share issue, which the clubs says guarantees Russo his money in the future and would ensure the club stays afloat.
A club spokesman told Press Association Sport: "The ball is now firmly back in Jimmy Russo's court."
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