Source: Daily_Mail
Watford plead for more time to pay £5m loan in bid to avoid administration
Rescue mission: Graham Taylor[LNB]Watford have appointed Graham Taylor as interim chairman on the day they pleaded for a stay of execution from his predecessor.[LNB]The 65-year-old former England boss has taken on the role afterJimmy Russo resigned on Tuesday and demanded the immediate repayment ofa loan of £4.88million.[LNB]Watford want Russo to hold on off demanding the cash because it would force the Hornets to call in the administrators and face a 10-pointpenalty from the Football League. [LNB]But major shareholder Lord Michael Ashcroft has today (Thursday) underwrittena £7.5million share issue, which the clubs says guarantees Russo hismoney in the future and would ensure the club stays afloat.[LNB] Icy future: It's not just the weather that is bleak at Watford's Vicarage Road[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 heand his brother, former Hornets vice-chairman Vince Russo, own. He ploughed in £1million last month to ensure the club could survive until December 22. [LNB]The Watford board, including former Hornets and England managerGraham Taylor, just now hope Russo agrees to the new repayment proposalunderwritten by Lord Ashcroft's company Fordwat Limited. [LNB] Yellow peril: Watford's Adrian Mariappa (right) tries to get away from QPR's Patrick Agyemang[LNB]A club statement read: 'The board of Watford Leisure have met thismorning and considered indicative proposals to save the company fromimmediate administration. [LNB]'The board have resolved to support a proposal from FordwatLimited of a £7.5m rights issue of a debt instrument, with eitherwarrants or conversion rights, offered to all shareholders andunderwritten in full by Fordwat Limited. [LNB]'This would, at the option of VGS, enable the VGS loan of £4.88m to be repaid in full with the remaining balance available tocontribute to the cash shortfall to June 2010 of £5.5 m. [LNB]'However for the board to proceed with this plan Valley GrownSalads would need to suspend its demand for the immediate repayment ofthe VGS Debt. The board is therefore in communication withrepresentatives of Valley Grown Salads and a further announcement willbe made in due course. [LNB]'In the event that no agreement can be reached with Valley GrownSalads then the company will have to be placed in administration. Thecompany's shares remain suspended from trading on the AlternativeInvestment Market.'[LNB]Watford are currently just two points off the Coca-ColaChampionship play-off places, but a 10-point penalty would leave themtwo points above the drop zone.[LNB] Watford face administration as club's former chairman calls in his £5m loanBoard departures stir hornet's nest as crisis Watford deepensTottenham target Loach would love to join Redknapp at White Hart LaneFootball on the brink: Liverpool and Manchester not immune from financial crisisFOLLOW WATFORD FC IN OUR STATS ZONE
