Cardiff shows documents that prove debt is not yet owed

Welsh Cardiff City chairman Peter Risdale produced documentation that shows a loan to the Langston Corporation is not due until 2016.

Langston had been threatening legal action, saying the club owed that amount immediately. It said the club missed a December payment and that a GBP 24 million stadium loan had to be repaid with interest tallied to 2011.

The chairman reiterated that no one from the club's current board had ever had any dealings with anyone from Langston. He did say former chairman Sam Hammam had dealings with the company, but refused to identify who was behind the company, which is Panamanian but registered in Switzerland.

But apparently the loan terms were altered last November, with the stipulation that there was a 10-year grace period for repayment.

"As far as we are concerned, it is legally binding," Risdale said. "It is signed by Langston Corporation and it is the document on which all of the financial funding requirements for the new stadium have been based."

Langston's solicitors disagreed. Hextalls partner Matthew Clark said he did not believe the accounts did not accurately reflect the situation relating to the Langston loan.

Ridsdale said the club's debt was reduced with Langston earned naming rights, which were valued at GBP 9 million.

Risdale also mentioned that he had no contact with Langston, and that was the problem with paying the debt.

"At some point in the future I have to write a cheque to Langston Corporation but I can't do anything more than that if I don't know who they are," Risdale said. "I can't do anything more than that if Mr. Hammam, who has been the intermediary so far, is refusing to talk to us. Frankly, the legal position is that I don't need to talk to them until December 2016."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.