Watford FC

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Hornets plunged into crisis

18 Dec 2009 - 07:28:58

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Former Watford chairman Jimmy Russo has refused to defer the repayment of his £4.88million loan and now looks set to put the Championship club into administration.

Russo resigned on Tuesday and announced he was to immediately call in the money he lent the club.

Hope of avoiding administration was raised following a £7.5million rights-issue rescue package from majority shareholder Lord Michael Ashcroft via his Fordwat Limited company on Thursday.

However, Russo has issued a statement issued via his company, Valley Grown Salads, in which he has confirmed his decision to reject the proposal.

"The rights issue proposal, while it might superficially be attractive, does not bear close examination. It gives Fordwat the opportunity to consolidate its control of the company without making an offer to other shareholders," read the statement.

"In the circumstances, VGS has rejected the proposal, has announced its intention to appoint an administrator of the club and will now be serving a formal demand on Watford Leisure PLC under the terms of its guarantee for repayment of the debt owed by the club to VGS.

"VGS has been left with no alternative than to take these steps. It does so with the greatest reluctance and only after significant and repeated efforts on its part to salvage the club have been rebuffed by the board and by Fordwat."

Former Watford manager Graham Taylor, who was appointed acting chairman on Wednesday, has hit out at Russo's decision.

He told BBC Radio 5 live: "It makes me very unhappy. Not just for myself, but for of all the supporters and the effect it will have on the club with the points deduction.

"It's almost as if (he is saying) unless I get my own way, I will put the club into administration."