Cardiff To Go Into Administration?

<table cellspacing="0" cellpadding="0" width="629" border="0"><tbody><tr><td colspan="3"><div class="mxb"><div class="sh">Cardiff warning over legal battle </div></div></td></tr><tr><td style="width: 416px" valign="top"><font size="2"><table cellspacing="0" cellpadding="0" width="203" align="right" border="0"><tbody><tr><td><div> <div class="cap">Ridsdale insists no voluntary action will be taken</div></div></td></tr></tbody></table>Cardiff City will be forced into administration if they lose a legal battle over a &pound;24m loan from financial backers Langston.

The Bluebirds are due in court next month for a hearing, but any case could last up to two years. </p>

Chairman Peter Ridsdale said: &quot;The only way Cardiff City would go into administration is if that was forced because we lost the court case. </p>

&quot;We adamantly believe that this will not happen.&quot; </p>

When Ridsdale arrived at Ninian Park in 2005 after being head-hunted by then owner Sam Hammam, Cardiff were losing &pound;9m a year and had debts of &pound;30m with the new stadium project looking in tatters. </p>

<table cellspacing="0" cellpadding="0" width="208" align="right" border="0"><tbody><tr><td style="width: 5px"></td><td class="sibStdQuote"><div><div class="mva">Administration has no place in our plans
</div></div><div class="mva"><div class="mva">Peter Ridsdale</div></div></td></tr></tbody></table></p>

Hammam left the club last October so that new investors could come in and sold his stake two months later, leaving former Leeds chairman Ridsdale to take control. </p>

But in August, Cardiff were threatened with court action over a &pound;24m loan from Cardiff backers Langston, taken out by Hammam. </p>

Langston's solicitors, Hextalls, claim the club's board was mismanaging its finances and misleading supporters, and said the money had to be paid immediately. </p>

But Ridsdale has insisted the loan is not due to be paid back until 2016 and he has ruled out taking the club into administration voluntarily at any time, as former club Leeds did at the end of last season. </p>

Instead, he insisted: &quot;We are continuing to work towards paying off the loan notes within the agreed dates and believe we will do that. </p>

<table cellspacing="0" cellpadding="0" width="208" align="right" border="0"><tbody><tr><td style="width: 5px"></td><td class="sib606"><div class="sihf">606: DEBATE </div><div class="ibqlinks">Where now for Cardiff? </div></td></tr></tbody></table></p>

&quot;We are also preparing for the court hearing and our legal advice says we have a good case. </p>

&quot;We have not even considered voluntary administration and we will not be going down that route in any way. </p>

&quot;Administration has no place in our plans. None at all.&quot; </p></font></td></tr></tbody></table>

 

Heh heh.....

</p><p align="center">ADMINISTRATION HAS NO PLACE IN OUR PLANS.</p><p align="center"></p>

 

Class nt

 

He did didn't he? I forgot about that.

</p>

The great steaming pillock.</p>

 

Not in the slightest concerned tbh

The "company" taking the court action, Langstons, are the owners of the unsecured loan notes lent to Cardiff City during the Sam Hammam era. I'll say it again, unsecured.

If they were to take this to court in order to get the early repayment - the signed documents in the clubs' possession (and HM Revenue & Customs) say these loan notes are to be repayed by 2016 - and win, they would lose that money as the club would be forced into administration.

They would obviously gain nothing by this.

It's a power struggle by Sam to either regain control of the club by his usual threatening rhetoric or to receive payment earlier. It would appear from various scources that he's "on his uppers" and needs cash quickly.

The Chopra money and the fact we've made significant signings has made him think we can settle up with him quicker.

He's a bitter man and any return to NP would end in (casualty) for him

 

RE: Not in the slightest concerned tbh

I'd be very worried with Riddy in charge. Cant you see Leeds now? What a crank he really is, cannot believe you havent seen through him yet

 

RE: Not in the slightest concerned tbh

 

Words couldn't have put it better. nt