'The ball is in Jimmy's court' (From Watford Observer)
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Watford could be saved from administration by Lord Michael Ashcroft but Jimmy Russo must back down
1:53pm Thursday 17th December 2009 in WFC in Crisis
Watford have accepted Lord Michael Ashcroft’s offer of a £7.5m rights issue to try and stop the club going into administration but for this to happen the club claim former chairman Jimmy Russo must suspend his demand for the £4.88m he is owed.
A statement released by the Hornets’ parent company Watford Leisure Plc, made half an hour ago, confirmed the board had decided to accept Lord Ashcroft’s proposal, via his company Fordwat Limited.
Fordwat has offered to underwrite the £7.5m issue but for this to take place, Russo must withdraw his demand for the £4.88m he is owed to be paid this afternoon.
Watford have contacted Russo’s company Valley Grown Salads and are now waiting to hear back from the former Hornets chairman.
Hornets chief executive Julian Winter claimed the ball was now in Russo's court.
Russo demanded the repayment after he resigned at Tuesday’s AGM after finding out major shareholders Lord Ashcroft and Graham Simpson were going to vote him off the board.
Watford Leisure’s full statement is below.
“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(41)
Maclanx
says...
2:06pm Thu 17 Dec 09
paultheshrink
says...
2:07pm Thu 17 Dec 09
sceptic
says...
2:12pm Thu 17 Dec 09
HOOF
says...
2:17pm Thu 17 Dec 09
sceptic wrote:Unfortunately mate,your not gonna get a choice!!
I would'nt let Ashcroft run my bath let alone WFC!!
badjer
says...
2:21pm Thu 17 Dec 09
sceptic
says...
2:24pm Thu 17 Dec 09
Aresoles like that always win dont they?
Richard - Come On You Golden Boys!
says...
2:24pm Thu 17 Dec 09
SouthOxheyHornet1
says...
2:26pm Thu 17 Dec 09
sceptic wrote:They have a valid registered debenture - the only way they would lose their money would be if the Club goes into Administration....
Unfortunately Hoof you are dead right! Just spoken to somebody who actually understands all this Rights Issue/Russo's loans business and he thinks the Russos have little choice but to accept ( or risk losing their cash) and Ashcroft will appoint a new person to run the club for him. Aresoles like that always win dont they?
hornet4eva
says...
2:31pm Thu 17 Dec 09
WFC4ever
says...
2:32pm Thu 17 Dec 09
sceptic wrote:Suppose accepeting the offer would be better than going into administration but what will it do for our long term future?
I would'nt let Ashcroft run my bath let alone WFC!!
davidjohnbarnard
says...
2:32pm Thu 17 Dec 09
enlightened one
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2:32pm Thu 17 Dec 09
MarchHare
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2:39pm Thu 17 Dec 09
MarchHare
says...
2:43pm Thu 17 Dec 09
MarchHare
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2:43pm Thu 17 Dec 09
hornet4eva
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2:46pm Thu 17 Dec 09
south/west hornet
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2:48pm Thu 17 Dec 09
enlightened one wrote:I hear what you are saying enlightened one,but if the worse does happen were be in 21st position, not impossible! it's not as bad as starting the season minus 10 points. anyways let's hope it don't come to that eh
We need to avoid administration end of,minus 10 points would be a disaster,all the loanees would have to go back.It would be a very hard struggle to come back from.COYH
Only 2 Ross Jenkins
says...
2:50pm Thu 17 Dec 09
JamesA
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3:02pm Thu 17 Dec 09
This needs sorting ASAP
WFC4ever
says...
3:03pm Thu 17 Dec 09
hornet4eva wrote:Would they care ?(remember the Russos aren't fans) and will want what is best only for them....rather than give in to somebody they don't get on with.
if the Russos dont accept it then it still puts them in the position of placing the club in administration and the threat of relegation. Is that something they are prepared to do for the 'good' of the club?
Hope I am proven wrong...
Feff
says...
3:06pm Thu 17 Dec 09
swedish_hornet
says...
3:08pm Thu 17 Dec 09
mattymashup
says...
3:18pm Thu 17 Dec 09
P.S THANKS LORD ASHCROFT
badjer
says...
3:19pm Thu 17 Dec 09
WFC4ever
says...
3:21pm Thu 17 Dec 09
mattymashup wrote:Interesting article here...
PLEASE ACCEPT THE OFFER ON THE TABLE JIMMY! ITS THE ONLY WAY TO SAVE THE CLUB WE LOVE!!!!! P.S THANKS LORD ASHCROFT
http://www.thisislon
don.co.uk/standard-s
port/football/articl
e-23785396-lord-ashc
roft-in-bid-to-save-
watford-from-adminis
tration.do
Makes me worry now that Jimmy R just wants his money rather than doing what will save the club?
dawlishhornet
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3:39pm Thu 17 Dec 09
JamesA
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3:45pm Thu 17 Dec 09
N Joydegame
says...
4:01pm Thu 17 Dec 09
One thing though, PLEASE PLEASE don't appoint Homer back as Chairman.
Thanks to Jimmy and Vince for getting rid of the 3 Desperados and for supporting the club to its current position.
edhorn
says...
4:03pm Thu 17 Dec 09
WFC4ever wrote:Remember Ashcroft isn't a Watford fan either. And if we're saying that Russo isn't a Watford fan, does that mean that Abramovich isn't a Chelsea fan just because he didn't grow up as one?
hornet4eva wrote: if the Russos dont accept it then it still puts them in the position of placing the club in administration and the threat of relegation. Is that something they are prepared to do for the 'good' of the club?Would they care ?(remember the Russos aren't fans) and will want what is best only for them....rather than give in to somebody they don't get on with. Hope I am proven wrong...
Stange logic some people use.
bomber18
says...
4:11pm Thu 17 Dec 09
edhorn wrote:Rather muddled thinking.
WFC4ever wrote:Remember Ashcroft isn't a Watford fan either. And if we're saying that Russo isn't a Watford fan, does that mean that Abramovich isn't a Chelsea fan just because he didn't grow up as one? Stange logic some people use.hornet4eva wrote: if the Russos dont accept it then it still puts them in the position of placing the club in administration and the threat of relegation. Is that something they are prepared to do for the 'good' of the club?Would they care ?(remember the Russos aren't fans) and will want what is best only for them....rather than give in to somebody they don't get on with. Hope I am proven wrong...
Chris the Vic
says...
4:17pm Thu 17 Dec 09
The loser in this might be Homer who may have to leave his additional shares with Fordwat.
I would certainly favour Russo management with Ashcroft financial clout but I would also want the non execs to be reduced as their broking powers have fallen short.
Hopefully Jimmy will do what is necessary to protect his investment and if Ashcroft is sensible he will want Jimmy and his management and money onside as we will need to run a tight ship for the forseeable future.
It is up to the fans to ensure the ground is full so we can back these guys and at the same time give them and incentive to sort the ground out.
Chris the Vic
says...
4:23pm Thu 17 Dec 09
So JR must have indicated a willingness to deal as for the Observer back down I think Jimmy has forced the hand of the rest of the supposed watfordites
WFC4ever
says...
4:34pm Thu 17 Dec 09
Chris the Vic wrote:That would be ideal too but sadly these men seem unable to work together so one will save us (hopefully)
Look for sure Ashcroft will have representatives on the Board but if the Russos want to protect their investment they might well go back on with their loan staying. The loser in this might be Homer who may have to leave his additional shares with Fordwat. I would certainly favour Russo management with Ashcroft financial clout but I would also want the non execs to be reduced as their broking powers have fallen short. Hopefully Jimmy will do what is necessary to protect his investment and if Ashcroft is sensible he will want Jimmy and his management and money onside as we will need to run a tight ship for the forseeable future. It is up to the fans to ensure the ground is full so we can back these guys and at the same time give them and incentive to sort the ground out.
BELGIAN HORNET
says...
4:52pm Thu 17 Dec 09
WFC4ever
says...
4:56pm Thu 17 Dec 09
a1derek
says...
6:15pm Thu 17 Dec 09
I'm sorry for the Russos that it's come to this as if they demand the money back now they will put the club into administration and be seen as the bad guys when they have clearly done so much good work.
They have to be seen to back down to save the club. I guess they could leave the loan in and take up options as well, but can they work with Fordwat? Probably not - unfortunately as I would like to see the Russos stay on and still be involved.
For sure Ashcroft will have his reasons and they will come to light when the time is right for him...and not before. As fans we need to be aware that he is totally ruthless...I have worked for him at a senior level and seen him and his people in action...it ain't pretty.
However, his superior financial clout has come to bear and left Russos in a position where I think they probably have to accept the terms.
I also think if Russos had perhaps given some hint to the other members of the Board and the reasons before they resigned, they may have got a more sympathetic hearing for their own offer to buy.
Using the poker analogy it does look like Ashcroft has played the perfect hand.
I just hope Jimmy and Vince don't play devil may care and send us into administration as that would be horribly unfair on Malky and the team.
Security word "rich-easy" sadly not!
kevhenderson
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6:29pm Thu 17 Dec 09
Billie
says...
6:49pm Thu 17 Dec 09
kevhenderson wrote:kev,
It looks like Russo is prepared to let us go into adminstration as I have read that he has rejected the proposal for an extension. Hardly sounds like somebody with the club and fans in his heart does it? I am shocked by this decision as it means that we will have a relegation fight on our hands rather than a fight for a potential pay off place.
It is sad but can you really blame Jimmy? They have attempted to humiliate Jim and Vince, do that to guys of Sicilian descent, expect them to respond like mice, and you have made a serious misjudgement.
The majority shareholders have burnt our club, not the Russo's who battled to save it.
a1derek
says...
6:56pm Thu 17 Dec 09
Either that or it's brinkmanship of the worst possible taste!
Either way, this is definitely not good!
Billie
says...
7:43pm Thu 17 Dec 09
a1derek wrote:I don't agree Derek. The majority shareholders of WFC and it's Board should be thoroughly ashamed of the pathetic attempts to blackmail the brothers into leaving their money in when they have been shafted twice. We will need a thorough investigation into all aspects of the last 4 years finances of the club if we do go into administration. It will be a devastating way for this to come about but maybe it needs to.
Sky reporting JR as saying he is going to put the club into administration after rejecting rescue package. If this is true all his hard work and any respect he had from the fans just went out of the window! Either that or it's brinkmanship of the worst possible taste! Either way, this is definitely not good!
Derek Payne says...
1:58pm Thu 17 Dec 09
You have saved us so many times before, please don't let pride get in the way this time.