Source: Daily_Mail
Watford face administration as club's former chairman calls in his £5m loan
Watford stand on the brink of administration after theCoca-Cola Championship club asked for trading in their shares to besuspended.[LNB]The Hertfordshire club, who were enjoying the riches of the Premier League just two-and-a-half years ago, have been told to pay back a loan of £4.88million by the end of Wednesday after a boardroom fall-out.[LNB]Chairman JimmyRusso, vice-chairman Vince Russo and director Robin Williams allresigned following a board meeting on Tuesday night.[LNB] Hornets' nest: Watford's Tom Cleverley (left) challenged QPR's Alejandro Faurlin earlier this month[LNB]Realistic: Graham Taylor[LNB]Jimmy Russo is thought to have fallen out with majority shareholderGraham Simpson and Lord Ashcroft - the deputy chairman of theConservative party, who has a 16 per cent stake - over ways of raising funds.[LNB]The club have to find £5.5m by June next year to avoid liquidationand the Russos-led Valley Grown Salads had lent Watford's holdingcompany £1m lastmonth in order to keep the club going until Monday, December 22. [LNB]Watford have now issued a statement to end trading oftheir shares on the Alternative Investment Market. [LNB]'Pending resolution and clarification of theirfinancial position, the company have requested that their shares besuspended from trading on AIM,' read the statement.[LNB]'In the event that a funding solution cannot be obtained then thecompany may have to be placed in administration. A further announcementwill be made in due course.'[LNB]Former Hornets and England manager Graham Taylor was re-elected to the board and ended up chairing the club's annual meeting at Vicarage Road following the resignations.[LNB]VIDEO: Watford in trouble...[LNB] Glory days: England star John Barnes (right) at the peak of his powers for Watford in 1986[LNB]Taylor told the Watford Observer: 'It is a total surprise, the resignation of the three people. It would have been helpful if the board had known about this before the meeting.[LNB]'Whatever happens, we are at a very crucial time in this club's future, it goes without saying.[LNB]'Now we can all look back and decide who we want to blame for this and say this and that but the reality is that there is not going to be much gained, in fact I can't see anything being gained, if we keep referring back to whatever has happened for whatever reasons.[LNB]'I believe in looking forward. This is what it is, this is the reality. We have to face up to it, we are threatened with administration and the demand from Jimmy and Vince for their money to be returned will put us into administration. I make no bones about saying that because that is a reality.[LNB] Former owner: Pop star Elton John at Vicarage Road in 1997[LNB]'They did put the money into the club and they will have their side of the argument but at the present time, by demanding their secured loans, unless somebody comes to our rescue, we will go into administration.'[LNB]Watford currently stand 10th in the Championship, just two points off the play-off places, but they face a 10-point penalty if they go into administration.[LNB] Board departures stir hornet's nest as crisis Watford deepensTottenham target Loach would love to join Redknapp at White Hart LaneWatford 0 Derby 1: Porter banishes away day blues for CountyFootball on the brink: Liverpool and Manchester not immune from financial crisisFollow Watford in our Stats Zone[LNB]
