Watford are not expected to release a statement confirming their financial position tonight but the Watford Observer understands the deadline to repay former chairman Jimmy Russo the £4.88m he is owed has been extended until tomorrow lunch time.

This morning a statement from the Hornets’ parent company Watford Leisure Plc stated Russo had demanded the immediate repayment of the £4.88m he loaned the club “on or before close of business on 16 December 2009”.

But we understand the club now have until tomorrow afternoon before Russo’s company Valley Grown Salads will demand its money back.

Failure to pay the cash could result in the club going into administration.

Russo decided to recall the money after he, his brother Vince and business associate Robin Williams all resigned from the board at the Watford Leisure AGM last night.

The trio stepped down as they felt they had lost the support of some board members and were going to be ousted by major shareholders Lord Michael Ashcroft and Graham Simpson regardless.

Click here to read this morning’s statement from Watford Leisure

Click here to read our detailed report from last night’s AGM