Source: Daily_Mail
Watford saved! Hornets pay off £5m loan to end threat of administration
Watford have staved off the threat of administration by paying backnearly £5million that had been owed by the club to their formerchairman and vice-chairman.[LNB]The Hornets looked set to be forced into administration afterchairman Jimmy Russo and brother Vince rejected a £7.5millionrights-issue package from majority shareholder Lord Michael Ashcroftlast week.[LNB]Jimmy Russo, who resigned last Tuesday, had insisted the club must pay back the £4.88million he had lent them.[LNB] Battling on: Watford's on-loan Arsenal starlet Henri Lansbury (left) takes on Peterborough's Chris Whelpdale [LNB]A club statement read: 'Watford Leisure announces that on December21, 2009 Fordwat Limited paid approximately £4.93million to ValleyGrown Salads in full and final settlement of VGS' demand of 15 December2009 for full repayment of approximately £4.88million in loanspreviously made available to the Company.[LNB]'The sum of £4.93million paid by Fordwat included accrued interestand a contribution to the legal fees of VGS (in accordance the loanagreement between VGS and the Company).[LNB]'In connection with the above payment, on December 21, 2009Watford Leisure signed an agreement with Fordwat for a loan to theCompany of approximately £4.93million, repayable on demand and accruinginterest at the rate of 4.5 per cent above the base rate of Barclays Bank plc(except in default when the rate rises to base rate plus 7.5%).[LNB] Delight: John Eustace (middle) will no doubt be delighted that his side have escaped threats of administration[LNB]'Furthermore, it is the understanding of both Watford Leisure andFordwat that security over the Vicarage Road Stadium for the FordwatLoan, replacing that of VGS, will be put in place in due course.[LNB]'The purpose of the Fordwat Loan was to prevent the company being placed in administration by VGS.'[LNB]The likely 10-point penalty triggered by administration would have put the club fourth from bottom in the Championship.[LNB] Graham Taylor hits out at former Watford chairman Jimmy Russo: You're a 'bad man'Peterborough 2 Watford 1: Exodus justifies Cooper's faithWatford results, fixtures and more in our Stats Zone
