More bad news for supporters of Watford football club following Saturday's 3-0 loss to Crystal Palace in the Championship, with the announcement that the team's holding company could run out of cash by Christmas without further funding.
Watford Leisure said it had borrowed another £1m last week from Valley Grown Salads - controlled by Watford directors Vincenzo and Giacomo Russo - taking the total loan to £4.88m, secured against the Vicarage Road ground.
But today it said it needed another £5.5m to cover cash flow requirements to the end of June 2010, and it has so far been unsuccessful in getting shareholders to agree to an equity fundraising.
Last week's loan will only be enough to cover its cash requirements until 22 December, and if it gets no further funding, the company said it would ask for its shares on Aim to be suspended "pending clarification of its financial position." Which is never a comforting phrase to hear from a company.
In the football world of course, points are docked for severe financial difficulties although the company did point out that the fundraising options it had proposed were still being actively considered.
In the market Watford Leisure's shares have slumped 3.25p to 6.75p - a 32.5% decline.
Watford Leisure said it had borrowed another £1m last week from Valley Grown Salads - controlled by Watford directors Vincenzo and Giacomo Russo - taking the total loan to £4.88m, secured against the Vicarage Road ground.
But today it said it needed another £5.5m to cover cash flow requirements to the end of June 2010, and it has so far been unsuccessful in getting shareholders to agree to an equity fundraising.
Last week's loan will only be enough to cover its cash requirements until 22 December, and if it gets no further funding, the company said it would ask for its shares on Aim to be suspended "pending clarification of its financial position." Which is never a comforting phrase to hear from a company.
In the football world of course, points are docked for severe financial difficulties although the company did point out that the fundraising options it had proposed were still being actively considered.
In the market Watford Leisure's shares have slumped 3.25p to 6.75p - a 32.5% decline.
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