Source: Team_Talk
Hornets ask for patience from Russo
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.[LNB]But major shareholder Lord Michael Ashcroft has underwritten a £7.5million share issue, which the club says guarantees Russo his money in the future and would ensure the club stays afloat.[LNB]A club spokesman said: "The ball is now firmly back in Jimmy Russo's court."[LNB]Russo loaned Watford the money through the company Valley Grown Salads which he and his brother, former Hornets vice-chairman Vince Russo, own.[LNB]He ploughed in £1million last month to ensure the club could survive until December 22.[LNB]The Watford board, including former Hornets and England manager Graham Taylor, must now hope Russo agrees to the new repayment proposal underwritten by Lord Ashcroft's company Fordwat Limited.[LNB]A club statement read: "The board of Watford Leisure have met this morning and considered indicative proposals to save the company from immediate administration.[LNB]"The board have resolved to support a proposal from Fordwat Limited of a £7.5million rights issue of a debt instrument, with either warrants or conversion rights, offered to all shareholders and underwritten in full by Fordwat Limited.[LNB]"This would, at the option of VGS, enable the VGS loan of £4.88million to be repaid in full with the remaining balance available to contribute to the cash shortfall to June 2010 of £5.5million.[LNB]"However for the board to proceed with this plan Valley Grown Salads would need to suspend its demand for the immediate repayment of the VGS Debt. The board is therefore in communication with representatives of Valley Grown Salads and a further announcement will be made in due course.[LNB]"In the event that no agreement can be reached with Valley Grown Salads then the company will have to be placed in administration. The company's shares remain suspended from trading on the Alternative Investment Market."[LNB]Watford are currently just two points off the Championship play-off places, but a 10-point penalty would leave them two points above the drop zone.[LNB]Manager Malky Mackay told Radio 5 Live: "Jimmy Russo has asked for his loan back and the fact Lord Ashcroft has come forward means money can be paid back to stave off administration - which could otherwise happen in the next day or two.[LNB]"The offer has been made but the ball's in Jimmy's court as to whether he accepts the plan. He can either take the club into administration or accept his money back.[LNB]"It's a great club, the people that work here, the staff and the players, work tirelessly. It has a great fanbase and great community spirit. It would be dreadful if this club went into administration if it didn't need to - and it doesn't need to."[LNB][LNB]
