‘ Vincent Tan is guarantor and personally responsible ‘
By Carl Curtis
When the settlement was reached between Cardiff City Football Club and Langston on the long standing loan notes, Vincent Tan stood as guarantor of the debt in the event that Cardiff City Football Club could not fulfill its commitment to pay the debt or keep up with the scheduled repayments.
This is the reason that the writ, brought to the court by Lansgton, names Vincent Tan as ultimately responsible for the debt.
Even if Cardiff City FC no longer existed, whether it was wound up because of another debt (hope that is never the case) and not even because of Langston, the debt to Langston would still be pursued by them and they would chase Vincent Tan for the money owed as he is the guarantor and signed up to that.
The full unedited statement released to the press in April of 2015 explains that quite clearly :
Court proceedings have been issued against Vincent Tan to pay an amount of 5.75 million pounds plus interest. This amount is due to be paid by the Club and Mr. Tan legally and personally guaranteed payment in the event of non-payment by the Club. This amount is the balance due under the Settlement Agreement with Langston as unfortunately Mr. Tan and the Club are now in default with the legally agreed payments.
Legally the demand is from both the Club and Mr. Tan but it is for Mr. Tan to honour the guarantee he has given or to use his resources to allow the Club to pay its debts. It is to be hoped that Mr. Tan recognises and executes his legal responsibilities and in so doing, avoids the Club itself being dragged into the legal proceedings.
Another point I would like to make is that Langston are seeking a summary judgement from the High Court, Langston are not looking to put the club into administration.
As we have seen on previous occasions with other creditors that the club has defaulted with on its payments with, a number of those creditors went for a winding up petition or order to force the club into payment or wind up the company, ie. HMRC had a winding up order against the club and Shine Foods Catering had a winding up petition for non payment, had the club not settled the debts then the club would have likely been wound up.
It is my opinion, despite scaremongering from the club through the media, that administration is not an angle nor is it even likely to happen, Langston is not looking for the club to go into administration but rather seeking a judge to rule to the club that payment is required and the debt should be paid.
Vincent Tan signed up as guarantor and personally accepted responsibility and because of the non payment, Langston are seeking £5.75m plus interest on the payments they would have received in the meantime of the non payments and also default penalties have been added, the total amount is approximately £6.8m.