LONDON (Reuters) – Watford Leisure Plc, the owner of Watford football club, has been offered an eleventh hour lifeline that may save it from administration.
Fordwat Ltd, an investment vehicle of wealthy Conservative peer Lord Ashcroft, has proposed to underwrite a 7.5 million pounds ($12.26 million) rights issue.
This would allow Watford to pay off its 4.9 million pounds loan to Valley Grown Salads, which has issued a written demand for the debt [ID:nLDE5BF0JN].
Watford warned that for the plan to proceed Valley would need to suspend its demand for immediate repayment, adding that failure to secure agreement would mean it would enter administration.
Fordwat currently owns 37 percent of the company, while Valley – a family-run cucumber and pepper business owned by previous Watford directors Jim and Vince Russo – owns 29 percent, according to Thomson I/B/E/S data.
Should it go into administration, Watford, currently 10th in the Championship, would face the penalty of a minimum 10 points docking.
Singer and former owner of the club Elton John is planning to hold a concert next May to raise funds for the team.
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