WFC in Crisis RSS Feed


Watford Leisure Plc release statement on the stock exchange regarding Watford FC's future - Here it is in full

12:56pm Thursday 17th December 2009 in WFC in Crisis

Further to yesterday's announcement and the suspension of trading on AIM the deadline for the repayment of loans to Valley Grown Salads ("VGS") (a company in which Jim and Vince Russo have an interest) of £4.88m is 1p.m. today ("VGS Debt").

The board of Watford Leisure ("Board") has met this morning and considered indicative proposals to save the Company from immediate administration. The Board has resolved to support a proposal from Fordwat Limited of a £7.5 million rights issue of a debt instrument, with either warrants or conversion rights, offered to all shareholders and underwritten in full by Fordwat Limited. This would, at the option of VGS, enable the VGS loan of £4.88 million to be repaid in full with the remaining balance available to contribute to the cash shortfall to June 2010 of £5.5 million.

However for the Board to proceed with this plan Valley Grown Salads would need to suspend its demand for the immediate repayment of the VGS Debt. The Board is therefore in communication with representatives of Valley Grown Salads and a further announcement will be made in due course. In the event that no agreement can be reached with Valley Grown Salads then the Company will have to be placed in administration. The Company's shares remain suspended from trading on AIM.

Comments(24)

Richard - Come On You Golden Boys! says...
1:04pm Thu 17 Dec 09

Well that's a step back from the Brink. However who is going to take over as Chairman I ask and if the Russo's still want their money back where will the additional £3m of funding come from to cover expenses until June. Scott Loach £3m transfer?

Report this post »    Register/Log In »

JB11 says...
1:09pm Thu 17 Dec 09

your move JR

Report this post »    Register/Log In »

Hornets number 12 fan says...
1:14pm Thu 17 Dec 09

This is like a game of Chess!!!! Can't take anymore!!!!

Report this post »    Register/Log In »

the sniper says...
1:15pm Thu 17 Dec 09

Come on JR if you are to be believed about "The Best For Watford Football Club"then help us out mate...please!

Report this post »    Register/Log In »

Rooky wgc says...
1:16pm Thu 17 Dec 09

Would Lord Ashcroft support the Russos back on board? They've got to be the best news the club has had for a long while. So long as it is not Homer...

Report this post »    Register/Log In »

JamesA says...
1:18pm Thu 17 Dec 09

It'll be interesting to see how the Russo's react to this. It should shed some light on their motives...

Report this post »    Register/Log In »

GrahamTaylor says...
1:19pm Thu 17 Dec 09

'Money where your mouth is time' LA has given the Russos the chance to convert their loan stock to debt and obtaina controlling interest. Basically put up or shut up.
-
Big Boys poker games continue
-
Richard I think you will find the £6.5M debt incl the £4.8 owed to VGS. There have never given money to the club only ever plugged a gap i.e transfering it from one person to another.

Report this post »    Register/Log In »

Rooky wgc says...
1:26pm Thu 17 Dec 09

So they're assumingthat they will get £2.8m for Scott Loach? Not sure Spurs are interested in paying that much, especially if they think it is a fire sale

Report this post »    Register/Log In »

Billie says...
1:30pm Thu 17 Dec 09

Jim and Vince have had the p*ss taken twice now. I suspect they have had enough and as proud Sicilian extract lads may well say no. They made an offer weeks ago and have not had the courtesy of a reply.
Why should they wait in these circumstances. Administration it is. Very sad...and I do not blame the Russo's. They have done everything possible to turn it around.

Report this post »    Register/Log In »

south/west hornet says...
1:31pm Thu 17 Dec 09

I don't get it,are we going into admin or not?

Report this post »    Register/Log In »

Chris the Vic says...
1:33pm Thu 17 Dec 09

So after all the shennanigans Fordwat have entered the ring to assist.

If the Russos grant WFC time they will still get their money back but why on earth given this offer couldnt this have been dealt with a couple of months ago as even now we could face administration.

Fordwat and Homer and the non execs have taken the club to the brink and if the worst happens they are fair and square to blame.

Gt read the statement the repayment of all or part of the £4.88 is at the option of VGS..I suspect given the terms of the loan if the Russos return to the board we may see some of it finance their share of the rights issue and some stay secured against the ground to allow them to complete their restructuring of the club.

If they dont go back on the board I trust that in no way will Fordwat hand the executive responsibilities back to Homer.

We now have to pray that the Russos are prepared to play ball and to come back on board.

Report this post »    Register/Log In »

Derek Payne says...
1:34pm Thu 17 Dec 09

Come on Jimmy and Vince - take the offer and please come back.

Report this post »    Register/Log In »

bomber18 says...
1:40pm Thu 17 Dec 09

Why can't we just insist that Portsmouth pay us what they owe? Problem solved.

Report this post »    Register/Log In »

the sniper says...
1:45pm Thu 17 Dec 09

Sad to keep on,but where did all that money go?Maybe a Police or Inland Revenue investigation might give us real supporters some truthful answers.If we go into administration do our loanees have to return to thier parent clubs?And do many clubs come out of administration? And an early request to Santa...new owners please and avioding administration

Report this post »    Register/Log In »

HOOF says...
1:47pm Thu 17 Dec 09

south/west hornet wrote:
I don't get it,are we going into admin or not?
That ALL depends on Jimmy Russo!!!

Report this post »    Register/Log In »

busstop says...
1:47pm Thu 17 Dec 09

It has always been my opinion that the Russo's have only thought long term about themselves and their beloved Chelsea, using there position at WFC to feed their ego .
Now they have a chance to prove me wrong , and i hope i am.

Report this post »    Register/Log In »

smeg says...
1:49pm Thu 17 Dec 09

This isn't the movies you know. It is not good verses evil. The Rossos seem quite willing to put the club into admin and people still think they want the best for the club. I am not saying Fordwat do, just that they are not risking the clubs future to make a point. We have only heard one side of the story and it is never as black and white as it seems.

Report this post »    Register/Log In »

bomber18 says...
1:54pm Thu 17 Dec 09

Flog off that white elephant the Red Lion,that should raise 1/2 million.As far as I am concerned the Russoes want a chance to rub whoever noses in the dust.Why don't they do or say something that is transparent to us fans,or is that foreign to their nature.As has been said,"put up or shut up"

Report this post »    Register/Log In »

bonserout says...
2:03pm Thu 17 Dec 09

To me its quite simple. Jimmy and Co were no longer prepared to bank roll Watford FC on their own. This has forced Ashcroft to do something or all their investment would be lost.
I would imagine Jimmy and vince would be happy to continue to give financial support if it was shared.
Alternatively , he could say ' I've been shafted twice, I,m on me bike!'
And who could blame him.

Report this post »    Register/Log In »

Bendean says...
2:05pm Thu 17 Dec 09

JRs tactic has worked - forced LAs hand into agreeing to invest a further £7.5m. What I don't get is why LA wanted the Russos off the board if he is now giving them the opportunity to maintain their part ownership at the existing level? Whatever happens now, LA will continue to be majority shareholder if he wants to be and can presumably put his own chairman in. If he dislikes the Russos so much, why did he allow JR to become chairman in the first place? Intriguing. It seems that LA has outmanouvred JR who has to now show his real motives. Tycoons like LA don't get where they are for nothing.

Report this post »    Register/Log In »

bomber18 says...
2:08pm Thu 17 Dec 09

Derek Payne wrote:
Come on Jimmy and Vince - take the offer and please come back.
I understand your worries but for Heavens sake DON'T grovel to those two.They have not given the Club zilch,just loaned money at a very attractive rate AFTER ensuring it was loaned as security on our ground,so they don't put any of their money in jeopardy.I find it all a bit dubious.Would the Board agree to supporters loaning the Club money at a guaranteed interest of 5%?

Report this post »    Register/Log In »

Richard - Come On You Golden Boys! says...
2:34pm Thu 17 Dec 09

GT: I was referring to the £5.5M that is needed to balance the ongoing losses between now and June 2010, this is in addition to the £4.88 loan of the Russo's, so if they want to call it in £7.5M; will be £2.88M short.

I think we'll be saved now (for the time being) we don't need to seek administration voluntarily and the Russo's would have to seek a winding-up order to press their claim for immediate payment which doesn't make sense. Maybe it's window dressing or Ashcroft holding out an Olive Branch to the Salad Bros to return?

Either way it's a better position than we were in yesterday.

Report this post »    Register/Log In »

Beds Hornet says...
4:14pm Thu 17 Dec 09

bomber18 wrote:
Derek Payne wrote: Come on Jimmy and Vince - take the offer and please come back.
I understand your worries but for Heavens sake DON'T grovel to those two.They have not given the Club zilch,just loaned money at a very attractive rate AFTER ensuring it was loaned as security on our ground,so they don't put any of their money in jeopardy.I find it all a bit dubious.Would the Board agree to supporters loaning the Club money at a guaranteed interest of 5%?
Bomber, you've hit the nail squarely on the head, my friend (as I did point out at the time and got villified by certain happy clappers). The Salad Boys have not "given" anything to our Club (except stability, granted). They can now walk away with a decent return on their investment whilst our club still teeters on the brink. Now we'll see whether JR really means what he says or whether it's all BS. All quite sad really when we should all be celebrating the acking of Judas...

Report this post »    Register/Log In »

GrahamTaylor says...
6:12pm Thu 17 Dec 09

VGS reject the offer!
-
I understand Loach, Hudson and Henderson have had offers accepted to go in Jan

Report this post »    Register/Log In »

click2find

Most popular






About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree