BusinessBusiness RecoveryLondon Welsh saved after Tenon brokers deal

London Welsh saved after Tenon brokers deal

Beleaguered rugby club sold to Red Dragon Rugby Limited after club shareholders and directors decide to write off £1.3m to ensure the club's survival

London Welsh has been rescued from administration after insolvency
specialists at Tenon brokered a solvent exit for the troubled business.

The club, founded in 1885, has completed a deal with Red Dragon Rugby Limited
after negotiations were handled by administrators from Tenon Recovery.

The Rugby Football Union only allowed the sale of the club’s shares to RDRL
after the new owners demonstrated that sufficient funding was in place for the
next two seasons. London Welsh will now be able to compete in the Championship,
the second tier of English professional rugby.

Directors and other shareholders have agreed to write off £1.3m in debts to
ensure the sale, but £450,000 owed to other creditors has been underwritten and
will be paid in full.

Gareth Roberts, a director at Tenon Recovery, said: ‘We have seen
considerable interest in London Welsh from potential investors in the last few
weeks as a result of its long and proud history and its aspirations for the
future.

‘We hope that this will offer the best long-term scenario for the club,
players and fans while preserving the club’s unique values and heritage, and we
are particularly pleased that we were able to hand over a solvent company to the
new owners.

‘I would also like to express my appreciation to the RFU for their support
during the entire process.’

John Dawes, club president and captain of the 1971 British Lions, added:
‘This is a great outcome and reflects the vital role that the club has, and will
continue to play, in both English and Welsh rugby. The new Championship offers
us some fantastic opportunities and we look forward to enjoying another
successful season.’

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