Daniel Tozser’s loan deal at Watford is unaffected by the announcement his parent club Parma have been declared bankrupt and will be demoted to Serie D. 

It was confirmed today that the northern Italy club have started bankruptcy proceedings after they were unable to find a new buyer who would relieve them of their €22.6million debt.

Parma, who finished bottom of Serie A last season, have subsequently been relegated to Serie D - an amateur division - but their plight does not affect Tozser.

That is because the Hungarian midfielder joined the Hornets last summer on a two-year international loan.

An international loan means Tozser signed a direct contract with Watford; a contractual agreement that can't be broken regardless of what happens at Parma.

The 30-year-old joined the cash-strapped Italian club last summer on a two-year contract but it was only as a way of smoothing negotiations between Watford and his former side Genoa - with Parma then believed to receive favourable treatment from fellow Pozzo-owned club Udinese.

Tozser immediately joined the Golden Boys on a loan deal which covered the whole of his Parma contract. The Hornets have the option of a third year directly with Tozser.