Cardiff gain time in dispute over £24m debt

The FA Cup semi-finalists Cardiff City were rescued from the brink of financial disaster yesterday when a High Court judge rejected a bank's bid to secure the immediate repayment of up to £24m.

The judge said the club had "a real prospect of a successful defence" and should not be subjected to a summary judgment.

Langston, a Swiss investment bank, is suing the Welsh club over loan notes which it holds. Langston had sought "summary judgment" – meaning that the club would be forced to pay up immediately. But Mr Justice Briggs, sitting in London, dismissed the claim.

As a result, the case will go forward to a full trial of the complex issues involved. The judge said the case was "clearly unsuitable for summary determination". He refused Langston permission to go to the Court of Appeal.

The judge was invited by both sides in the dispute to delay the full hearing of the case for two months, in the hope that matters can now be resolved without the need for further court action.

The Championship club, still savouring the FA Cup quarter-final victory against Middlesbrough two weeks ago, had faced possible administration if Langston succeeded in its claim.

Langston's counsel, Michael Driscoll QC, told the court it was common ground that Langston was a substantial creditor of the club and that the debt owed to it was in excess of £15m. It was also common ground that Langston loaned £24m to the club in 2004, and it had yet to be repaid anything. It was the club's case that nothing was payable at the moment. The judge extended the time limit for Langston to renew its application for permission to appeal to the Court of Appeal until 10 June.

Announcing that a two-month stay on the action had been agreed, the club's counsel, David Wolfson, said: "It has always been the club's aim to reach a settlement without incurring further legal costs and, over the next two months, we hope very much to do that so we can concentrate on matters on the field where, I'm glad to say, we have enjoyed some success."

The judge wished the two sides "every success" in their attempts to resolve the dispute.

Cardiff's chairman Peter Ridsdale said: "I'm relieved. I think that we have always accepted that we owed Langston £16m and the proceeds of the naming rights of the new stadium, up to a maximum of £9m. We feel that the action over the last seven months has been strangling the club and has been unnecessary.

"We would expect anyone who has a difference of opinion to sit down and come to an amicable conclusion but all that happened was we were dragged through the courts, which was very expensive and time-consuming and stops the process of raising cash which could have gone towards resolving this dispute.

"I sincerely hope they will sit around the table and realise that an amicable situation is the only way forward for both parties."

Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Career Services

Day In a Page

Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most
Katy Perry prevented from buying California convent for $14.5m after nuns sell to local businesswoman instead

No grace of God for Katy Perry as sisters act to stop her buying convent

Archdiocese sues nuns who turned down star’s $14.5m because they don’t approve of her
Ajmer: The ancient Indian metropolis chosen to be a 'smart city' where residents would just be happy to have power and running water

Residents just want water and power in a city chosen to be a ‘smart’ metropolis

The Indian Government has launched an ambitious plan to transform 100 of its crumbling cities
Michael Fassbender in 'Macbeth': The Scottish play on film, from Welles to Cheggers

Something wicked?

Films of Macbeth don’t always end well - just ask Orson Welles... and Keith Chegwin
10 best sun creams for body

10 best sun creams for body

Make sure you’re protected from head to toe in the heatwave
Wimbledon 2015: Nick Bollettieri - Milos Raonic has ability to get to the top but he must learn to handle pressure in big games

Nick Bollettieri's Wimbledon files

Milos Raonic has ability to get to the top but he must learn to handle pressure in big games
Women's World Cup 2015: How England's semi-final success could do wonders for both sexes

There is more than a shiny trophy to be won by England’s World Cup women

The success of the decidedly non-famous females wearing the Three Lions could do wonders for a ‘man’s game’ riddled with cynicism and greed
How to stop an asteroid hitting Earth: Would people co-operate to face down a global peril?

How to stop an asteroid hitting Earth

Would people cooperate to face a global peril?
Just one day to find €1.6bn: Greece edges nearer euro exit

One day to find €1.6bn

Greece is edging inexorably towards an exit from the euro
New 'Iron Man' augmented reality technology could help surgeons and firefighters, say scientists

'Iron Man' augmented reality technology could become reality

Holographic projections would provide extra information on objects in a person's visual field in real time
Sugary drinks 'are killing 184,000 adults around the world every year'

Sugary drinks are killing 184,000 adults around the world every year

The drinks that should be eliminated from people's diets
Pride of Place: Historians map out untold LGBT histories of locations throughout UK

Historians map out untold LGBT histories

Public are being asked to help improve the map