City boss Ridsdale court in two minds

Mar 9 2008 by Chris Wathan, Wales On Sunday

CARDIFF City face two knockout clashes this week – and there can be no doubting which is the more important.

While attention will be on the FA Cup quarter final at Middlesbrough today, Cardiff’s High Court meeting with loan-note holders Langston is pencilled in for Wednesday.

And the threat to the club is just as real as it was before their winter of discontent.

Having seen the original December date postponed at the last moment, the summary judgement hearing is now expected to go ahead this week, where a judge will decide whether City need to repay their £24m debt immediately.

If not, Cardiff would still need to go to full trial – but success this week would put severe doubts against the validity of the claims against them. But City will still be hoping a deal can be done with the faceless Langston, whose full identity is known only to former owner Sam Hammam, on the steps of the court if necessary.

Chairman Peter Ridsdale still insists the club have been willing to organise an early repayment scheme, despite holding paperwork they say means they do not have to settle the debt until 2016.

However, defeat would leave the club with little apparent option but to ponder administration with Cardiff in no position to repay the debt straight away and Ridsdale suggesting he would walk away.

The legal fees – already understood to have reached £500,000 – have hampered the club this season while other investment has been put on hold, further damaging the club.

“We’ve been starved of cash because of events outside our control in the court case,” said Ridsdale. “Whichever way that drops it will at least put the uncertainty behind us.

“The income streams we expected have not materialised and will not until the court case has been resolved.

“We’ve been dealt a hand that says we’ve done a lot of good things and another hand which says we have other obstacles to climb.

“If we succeed with those next week then we go into the summer with greater confidence; if we don’t then you will be seeing somebody else talking about what they are going to do with the football club.”

Ridsdale has moved to allay fears that the new stadium would be at jeopardy should the judge rule against Cardiff with the funding for the Leckwith project ring-fenced.

But, in contrast to earlier statements about the legal wrangling, an air of uncertainty seems to have crept in.

Ridsdale and stadium investors PMG are no doubt frustrated with the inability to thrash out a settlement out of court already, with legal experts previously admitting that it is nonsensical for a creditor to push for a scenario that could leave the club in administration and Langston potentially receiving pennies in the pound rather than the full sum over the agreed period. One dispute resolution expert told WoS that he sensed a power struggle was the real reason behind the Bluebirds’ legal battle.

“I don’t know what is going to happen,” Ridsdale added. “If there’s an opportunity to resolve it out of court we would wish to. But it takes two parties to do that. It’s something out of my control.

“Once you get into court you don’t know what’s going to happen. We know what we want to achieve with all our legal documentation. Ultimately it will be up to the legal system to determine.

“My job is to do what’s right for the club and that’s what I will do while I’m here.

“The only people who are potential winners or losers are Cardiff City and the supporters. It’s a case we will fight and if we win so be it and if we lose the consequences of that will be rolled out into the public.”