TIDMWFC 
 
RNS Number : 9225Y 
Watford Leisure PLC 
11 September 2009 
 

Watford Leisure PLC 
("Watford Leisure" or the "Company") 
 
 
Funding Position and Related Party Loans 
 
 
When the Board announced the Company's interim results in March 2009 it 
confirmed that it had prepared projections through to June 2010 and that it was 
confident that through a combination of operational cash flows, borrowing 
facilities, capital raising abilities and shareholder support the Company could 
meet all of its financial obligations. 
 
 
The Board is still confident that longer term finance can be raised and is 
currently considering all fundraising options including the potential issue of 
new equity to the Company's key shareholders.  It is currently anticipated that 
significant funding will need to be put in place before the year end and, as a 
result, discussions with these key shareholders are ongoing.  If no agreement 
can be reached then the Company will have to seek alternative sources of 
financing. 
 
 
Related Party Loans 
 
 
The Company's working capital requirements have been assisted over the course of 
the last nine months by Valley Grown Salads ("VGS") which agreed to delay 
repayment of a short term loan of approximately GBP1.82 million, which (as 
previously announced) was made available to the Company's subsidiary, Watford 
Association Football Club Limited (the "Club")  in January 2009 (the "January 
Loan") and was originally due to be repaid in four equal instalments from monies 
due from The Football Association Premier League Limited ("the FAPL") the last 
instalment being due on 31 July 2009.  These instalments were made available to 
the Club with the agreement of VGS when received from the FAPL. Further short 
term funding of GBP0.65 million was provided by Giacomo Russo at the end of July 
2009 (the "July Loan") and a further GBP1.25 million was provided in August 
2009 by Giacomo Russo (the "August Loan"). 
 
 
The Company has today agreed that the January Loan, the July Loan plus a 
previously loaned amount of GBP0.16 million, totalling approximately GBP2.63 
million, will be consolidated into a single loan from VGS and will be due for 
repayment within twelve months of the agreement date and will accrue interest 
until that time at an interest rate of LIBOR plus 3.5 per cent. per annum, 
payable on maturity, although the Company has the option to repay the loan at 
any time.  VGS has also been granted security over the Vicarage Road Stadium, by 
way of a debenture ranking behind the existing secured creditors, in respect of 
this consolidated loan. The security is subject to the finalisation of 
appropriate documentation. The August Loan of GBP1.25 million from Giacomo Russo 
is repayable in three instalments over the next twelve months on receipt of the 
proceeds of player transfers agreed in August and will accrue interest at a rate 
of 7 per cent per annum. 
 
 
The extension of the repayment terms of the January Loan and provision of both 
the July Loan and the August Loan are deemed to be related party transactions 
under the AIM Rules for Companies. The independent directors of the Company in 
respect of these loans (that is, excluding Vincenzo and Giacomo Russo who 
jointly control VGS) consider, having consulted with Strand Partners Limited, 
that the terms of the loans are fair and reasonable insofar as the Company's 
shareholders are concerned. 
 
 
A further announcement in respect of the Company's funding position will be made 
in due course. 
 
 
Giacomo Russo, Chairman said "I am pleased to have been able to provide 
financial support for Watford at a time of difficult cash flow while operational 
issues were addressed and look forward to agreeing the basis of the company's 
longer term financing with the other major shareholders shortly. I would also 
like to thank my co-directors for their continued support". 
 
 
Enquiries: 
 
 
Watford Leisure PLC 
Tel:  01923 496000 
Jimmy Russo, Chairman 
Julian Winter, Chief Executive Officer 
 
 
Strand Partners Limited 
Tel:  020 7409 3494 
Rory Murphy 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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