Trading in Watford shares suspended (From Watford Observer)
Get involved: send your pictures, video, news and views by texting WO to 80360, or email us
Russos demand repayment of loan by end of today
8:50am Wednesday 16th December 2009 in WFC in Crisis By Anthony Matthews
Watford have asked the London Stock Exchange to suspend trading in the shares of their parent company after the Russo brothers demanded repayment of their £4.88m loan "on or before close of business" today.
The announcement comes after last night's dramatic annual meeting of Watford Leisure Plc when chairman Jimmy Russo and his brother and vice-chirman Vince resigned.
The company has also formally warned the Alternative Investment Market that it may be “placed in administration” if a “funding solution cannot be obtained”.
The statement reads: “Watford Leisure announces that immediately prior to the Company's Annual General Meeting, held yesterday evening, Jim Russo, Vince Russo and Robin Williams resigned from the board of Watford Leisure ("Board") with immediate effect. All other resolutions, including those to reappoint the remaining members of the board were duly passed. Both Valley Grown Salads and Fordwat Limited abstained from voting on the resolutions to re-appoint the non-executive directors to the Board.
“Following the resignation of the aforementioned directors, the Board received a written demand from Valley Grown Salads (a company in which Jim and Vince Russo have an interest) for the repayment of its £4.88m of loans (made to the Company) on or before close of business on 16 December 2009.
“The Board continues to consider indicative proposals from both Valley Grown Salads and Fordwat Limited. However, pending resolution and clarification of its financial position the Company has requested that its shares be suspended from trading on AIM. In the event that a funding solution cannot be obtained then the Company may have to be placed in administration. A further announcement will be made in due course.”
Comments(28)
Dannyseabs
says...
9:06am Wed 16 Dec 09
WFC4ever
says...
9:45am Wed 16 Dec 09
rochdale away
says...
10:31am Wed 16 Dec 09
oo busy following this!
It really does beggar belief given the wealth of most of our shareholders and life president that this is happening. My gut is they are playing 'poker' and my money is on the brothers simply because ashcroft probably isn't that bothered?
Is this the place to stay up to date or are there quicker sources?
rochdale away
says...
10:39am Wed 16 Dec 09
Lets hope that if so the league realise it isn't about screwing creditors a la leeds, scum town, southampton etc and just board room shennigans? Southampton nearly got away with it as far as I'm aware
WFC4ever
says...
10:47am Wed 16 Dec 09
rochdale away wrote:Exactly...the club don't have massive debts but the ones we do aren't "recoverable" without backing but ofcourse big egos and personal bickering are getting in the way with us and club left in the middle.
just a thought, but I'm not sure the actual fooball club part of the plc has any debt(unlike southampton). So if the parent company go into admin might the Russos pick up the football club as an asset without paying off simpson/ashcroft and their loan be secure(on the ground). Lets hope that if so the league realise it isn't about screwing creditors a la leeds, scum town, southampton etc and just board room shennigans? Southampton nearly got away with it as far as I'm aware
The Not-so-enlightened one
says...
10:56am Wed 16 Dec 09
mellow yellow
says...
11:04am Wed 16 Dec 09
Football is in such a mess as a result of the money that has flooded into it (largely thanks to Sky) and it wouldn't surprise me that by 2020 we have only 36 or so pro clubs in business.
Always Yellow.
Sec: mile-bill. Nuff said.
rookerynook
says...
11:25am Wed 16 Dec 09
rosewine
says...
11:27am Wed 16 Dec 09
They may not want to talk about their plans, but clarification of what they intend is now vital.
jasonwatford
says...
11:32am Wed 16 Dec 09
Grinns
says...
11:48am Wed 16 Dec 09
Sandridge Hornet
says...
12:02pm Wed 16 Dec 09
It beggars belief that a company that has director's worth so much money can be allowed to go into administration. There ought to be a law making the director's of a company personally liable in these kinds of situations (not just in football, but any company).
Why should creditor's lose out financially, whilst some very rich men (the director's) be allowed to just walk away? What the creditor's are owed when a company goes into administration, ought to be recoverable from the assets / finances of the directors. If this was the case then they would certainly be a lot more careful and prudent in how they run their company!
JamesA
says...
12:02pm Wed 16 Dec 09
If anyone wants to do anything constructive, I would suggest they contact their local conservative candidtate and let them know that if WFC goes into administration as a result of Michael Ashcroft's actions, they will be putting their vote elsewhere.
Sandridge Hornet
says...
12:17pm Wed 16 Dec 09
ab11uk
says...
12:23pm Wed 16 Dec 09
I have already sent a email to the conservative member via his website.
I believe watford fans should do so as he openly asks for feedback on his website.
ab11uk
says...
12:26pm Wed 16 Dec 09
I am as concerned as you are about the future of the Club. I don't know anything about Ashcroft's plans, and I am sure, even if he were here, he would not discuss them with me.I can only campaign to people here in Watford,on things I can influence, like our policies on the NHS, Education and the Economy I hope all will be resolved successfully with the ClubRegardsRichard Harrington
yellowredblack
says...
12:32pm Wed 16 Dec 09
Wags it all about?
says...
12:39pm Wed 16 Dec 09
you make damning statements about the Russo's and then end up confessing your ignorance re any details.
numptees like you you shut it if you have nothing valuable to say.
You are a naive and not very intelligent person to understand why the Russo's are asking for their money back today.
When every avenue to resolve the funding issues has been pursued and exhausted with the majority shareholders this isn't such a surprise.
Why wait to be voted off and be treated with further contempt by the imajority shareholders? These individuals have stood by and happily allowed Jimmy and Vince to part with the best part of 5m.
If this was your money and you received the 'support' shown by these individuals would'nt you also be demanding your money back today??
Wake up and watch further events unfold
Arthur
says...
12:46pm Wed 16 Dec 09
They've turned their unsecured "loan" into a security - the ground.
Watford Leisure goes to the wall, Ashcroft's "investment" with it and then the Pheonix rises from the ashes with surprise, surprise an intact ground to play in.
Time will tell if this is the reality of the situation but on the face of it the Russo's have broken the impasse of the last months of uncertainly. Ashcroft can have short arms and deep pockets on his own from now on.
Hopefully, when it comes to election time Horns fans will remember just who Ashton's best mate is (he's opened an office near the pond.
StotfoldHornet
says...
1:05pm Wed 16 Dec 09
Holly68
says...
1:48pm Wed 16 Dec 09
more to follow
I feel very sorry for Jimmy & Vince, these guys put their heart and soul into the club only to be fcuked over ....
johnnyc72
says...
2:10pm Wed 16 Dec 09
Simpson royally screwed us over first time round.
Ashcroft has the funds but doesnt want to know. Petty cash to him.
Vince and Jimmy have spent time and money getting Watford back into shape, playing the best football for along time, and people still criticise them. What choice do they have?
I also agree that it is us fans who will suffer and Ashcroft does not give a stuff about that.
sec word - bank-unit - oh my god, even WO have sarcasm
Holly68
says...
2:18pm Wed 16 Dec 09
peopl forget that they also own shares, so have money to lose outside the loans
Jimmy was the most despondant I have ever seen him Saturday, he knew he was going to get voted out, for NO reason other than politics !!!
Simpson and Ashcrft should have accepted their buy out, instead they couldny even turn up to the AGM.
Jimmy & Vince had to jump before pushed, when it came to it, I dont see Winter, Taylor, Timperely being that supportive either, all protecting their own polictical status !!!
some other club will benefit from the Russo's now, shame not watford
Derek Payne
says...
2:40pm Wed 16 Dec 09
How dare they all play poker like this with Watford.
They all need their heads banging together, preferably by GT.
SouthOxheyHornet1
says...
2:58pm Wed 16 Dec 09
Its a watch this space scenario at the moment - I think that VGS 24 hour demand is a little harsh - but then again, I am not aware of the particulars intergrated into the debenture.
Heads Up Horns!!
Spencer Hutchinson
says...
2:58pm Wed 16 Dec 09
Buckstops
says...
3:27pm Wed 16 Dec 09
The only people who truly care about the club, should be given the opportunity to take it on.
says...