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Page last updated at 10:37 GMT, Friday, 11 December 2009

Cardiff City 'settle' with creditors Langston

Cardiff City

Cardiff City Football Club have announced a settlement with the Langston Corporation over the £15m debt taken out in 2004.

The club say the agreement removes the threat of any further legal action in the "foreseeable future".

Chairman Peter Ridsdale has also thanked former owner Sam Hammam for helping to reach the agreement.

Cardiff will begin paying the debt in monthly instalments, with the first payment scheduled for January 2010.

Last month Malaysian businessman Datuk Chan Tien Ghee joined the club's board, bringing in hopes of fresh investment now the legal stand-off with Langston appears to have been solved.

"On behalf of Cardiff City Football Club, I would like to thank the Langston Corporation for their co-operation in this matter and Mr Sam Hammam for helping to facilitate this agreement," Ridsdale said.

"Langston are happy because they are seeing some cash for the first time and we're happy because the settlement, agreement, is at a level that we believe is fair and reasonable and we can make.

"Nobody was going to invest in this football club with the threat of legal action hanging over us from Langston, given the magnitude of the debt.

"Therefore potential investors I think will see this club as an even more attractive proposition than it was before."

Swiss-based financiers Langston took Cardiff to the High Court in March 2008 demanding immediate repayment of £24m in loans.

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But the High Court decided in Cardiff's favour, ruling that the loan did not have to be paid back until 2016 as the club had originally understood.

Ridsdale told a press conference that Langston, which has close connections with former Cardiff City owner Sam Hammam, loaned £24m to the Welsh club in 2004.

But Ridsdale insisted he renegotiated the debt to £15m in 2006 in the same year Ridsdale became Cardiff chairman, although Langston also has a claim on the proceeds of the naming rights of the new stadium up to a maximum of £9m.



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see also
Jones wants Cardiff finance boost
10 Dec 09 |  Cardiff
Cardiff cash halts winding-up bid
25 Nov 09 |  Cardiff
Cardiff boss hopeful on debt deal
29 Oct 09 |  Cardiff
BBC Sport Wales coverage
03 Oct 11 |  Wales


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