Watford FC

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• Manager:Malky Mackay

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Hornets avoid administration threat

19 Dec 2009 - 11:06:37

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Watford have been saved from the threat of administration after majority shareholder Lord Ashcroft agreed to pay former chairman Jimmy Russo an immediate £4.88million.

Russo had threatened to put the club into administration after demanding immediate repayment of the loans he made to the Championship club prior to resigning from the board on Tuesday.

He rejected an initial proposal to defer the payment as part of a £7.5million rights issue tabled by Lord Ashcroft.

However, the two parties have now come to an agreement which will avoid the threat of administration and a 10-point penalty being imposed on the club.

"I'm relieved to have all this sorted out but it's disappointing it has taken so long," Russo told BBC Radio 5 live.

"It has rescued the club and it is good for the club and I'm delighted. I didn't want to put them into administration.

"I wish the football club all the best and they have got a good future."

Meanwhile, the rights issue spearheaded by Lord Ashcroft will now go-ahead which will secure the future of the club until the end of the season.